(Alliance News) - Victrex PLC on Friday said it saw a "slow start" to its financial year due to "weakness" across the chemical sector.
The Lancashire, England-based company aims to make polymer products that are environmentally sustainable, serving multiple end-markets.
Shares were down 5.0% to 1,277.00 pence early Friday in London. The wider FTSE 250 index was up 0.1%.
Revenue fell 22% to GBP61.2 million in the three months to December 31, the first quarter of Vixtrex's financial year, from GBP78.8 million a year before.
This was caused by a 21% decrease in volume to 751 tonnes from 948.
Average selling price, however, remained "robust" and in line with guidance, Victrex said, at GBP82 per kilogram.
Going into the second quarter, Victrex said it saw an improvement in January, but it warned that forward visibility remains limited.
Due to the slow start to the financial year, pretax profit for the six months ending March 31 will be lower than originally expected, it said.
"After a soft start to the year, in line with the wider chemical sector, the group is seeing signs of monthly run-rate improvement, on a sequential basis," said Chief Executive Officer Jakob Sigurdsson.
"January trading was solid and ended slightly ahead of the prior year comparative. However, we are mindful of the soft start and limited visibility of an up tick in several end-markets. The opportunity to deliver year-on-year progress remains. However, a continuation of the current macroeconomic conditions makes achieving a profit growth outcome for the year more challenging and requires a further step up in run rates for the remainder of FY 2024. We continue to tightly manage controllable expenses, to support our performance," he added.
By Sabrina Penty, Alliance News reporter
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Victrex (VCT)