VCT4 Oct 2012 09:00
Year End Trading Statement and Board Appointment
Trading update for the year ended 30 September 2012
We are pleased to report that the positive trend in Group sales volume has continued with second half volume 7% ahead of the same period last year at 1,527 tonnes (H2 2011: 1,426 tonnes). This reflects strong new business commercialisation in our Victrex Polymer Solutions business ('VPS'). Full year volume increased to a new record of 2,904 tonnes (2011: 2,860 tonnes).
Full year revenue in our Invibio® Biomaterial Solutions business ('Invibio') was £50.5m (2011: £49.7m). Sales into the spine market were broadly in line with the prior year reflecting destocking at a select number of customers over the summer in response to the continued uncertainty in the US medical device industry. Revenue from our developing markets outside of spine grew by 11%, predominantly in arthroscopy.
Investment in capacity for growth
As we work with our customers and end users to create new opportunities for growth, demonstrating our ability to fulfil increased demand is critical. We are therefore pleased to confirm that we have commenced construction of a third PEEK plant on our Hillhouse site in Lancashire. This will increase our annual capacity by 2,900 tonnes to in excess of 7,000 tonnes. The total capital cost, including all related utility systems and infrastructure, is expected to be £90m which will be funded out of operating cash flow. The new plant is expected to be operational in early 2015.