The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksVictrex Regulatory News (VCT)

Share Price Information for Victrex (VCT)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 1,246.00
Bid: 1,242.00
Ask: 1,246.00
Change: 20.00 (1.63%)
Spread: 4.00 (0.322%)
Open: 1,220.00
High: 1,246.00
Low: 1,220.00
Prev. Close: 1,226.00
VCT Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

AGM & Q1 Interim Management Statement

9 Feb 2024 07:00

RNS Number : 5635C
Victrex PLC
09 February 2024
 
 

9 February 2024

Victrex plc - AGM & Q1 Interim Management Statement

'A soft start to FY 2024 - in line with guidance'

Victrex plc is an innovative world leader in high performance polymer solutions, delivering sustainable products which enable environmental and societal benefit in multiple end-markets. Today's Interim Management Statement (IMS) covers the first quarter of FY 2024, from 1 October 2023 to 31 December 2023.

 

At the Group's FY 2023 preliminary results in December 2023, our outlook for the year ahead indicated that we were seeing a slow start to FY 2024. This has been driven by a continuation of the weakness seen in H2 2023 across several end-markets, in line with the wider Chemical sector. Although we typically see seasonally lower volumes in Q1, this period has remained challenging, compared to a good performance in the prior year period.

Summary

· Q1 Group revenue down 22% at £61.2m (Q1 2023: £78.8m)

· Q1 Group volume down 21% at 751 tonnes (Q1 2023: 948 tonnes)

· Robust Group ASP, in line with guidance at £82/kg; sales mix reflects a softer quarter in Medical due to order phasing and destocking, and adverse currency movements

· Improvement seen in January (the start of Q2), though visibility remains limited

 

End market performance

In our Sustainable Solutions area, the Group saw further progress in Aerospace, whilst Automotive returned to growth and continues to track positively. Q1 performance was offset by the prolonged downturn in the end-markets of Electronics, Energy & Industrial and Value Added Resellers (VAR). At the start of Q2, January trading saw a slight improvement, compared to Q1 run-rates and the prior year (January 2023), though we note that visibility is limited.

 

After a softer start in Medical, Q2 has begun positively, compared to both Q1 and the prior year. However, we are mindful of some destocking amongst medical device companies, which has impacted the industry over recent months. We expect to see improvement as the year progresses and remain encouraged by the broader range of Medical applications using PEEK. In our Medical mega-programmes, we are seeing commercial revenues building in Trauma plates, whilst our PEEK Knee development is ahead of our expectations. Following strong progress in the clinical trial, the focus for PEEK Knee is now on the regulatory and commercial pathway, and additional major OEM collaborations.

 

Financial position & cost actions

Victrex retains a cash generative business model, supporting growth investment and shareholder returns. With interest payable for our China loan - as our manufacturing facilities in China prepare for commercial operations - and reflecting the Group's lower cash balance, net interest will be negative this year.

 

Cash and working capital management remain key priorities. Together with lower capital expenditure, our planned inventory unwind will improve our cash position, although this is currently being held back by the weak trading environment. This one-off impact of lower asset utilisation, as we unwind inventory in FY 2024 and the remainder in FY 2025, will further increase under-recovered fixed costs in our income statement.

 

The Group's cost actions remain strong in this challenging period. Pleasingly, operating overheads are tracking lower than the prior year at this early stage, despite continued innovation investment. Additional cost options are available if the current macro-economic environment persists for a longer timescale.

 

Outlook

Jakob Sigurdsson, Chief Executive of Victrex, 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 (Q2 vs Q1).

 

"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 uptick in several end-markets. Together with the increased year-on-year impact in our income statement from reduced asset utilisation, this means first half revenue and PBT is expected to be lower than the prior year period. The Group previously communicated that progress in revenue and PBT for FY 2024 was reliant on a macro-economic recovery in our second half. The opportunity to deliver year-on-year progress remains. However, a continuation of the current macro-economic 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.

 

"Victrex's long-term investment proposition remains strong. We have a robust and diversified core business, increasing commercialisation in our mega-programmes, well invested assets, and the opportunity for cashflow improvement. Overall, we are well-placed for a macro-economic recovery and for the medium to longer term."

 

 

Annual General Meeting

Victrex's Annual General Meeting will also be held today, starting at 11.00am GMT and taking place at JP Morgan, 1 John Carpenter Street, London EC4Y 0JP.

 

Victrex plc:

 Andrew Hanson, Director of Investor Relations, Corporate Communications & ESG

+44 (0) 7809 595831

 Ian Melling, Chief Financial Officer 

+44 (0) 1253 897700

 Jakob Sigurdsson, Chief Executive

+44 (0) 1253 897700

 

About Victrex:

Victrex is an innovative world leader in high performance polymer solutions, focused on the strategic markets of Automotive, Aerospace, Energy & Industrial, Electronics and Medical. Every day, millions of people rely on products or applications which contain our sustainable materials, from smartphones, aeroplanes and cars to energy operations and medical devices. With over 40 years' experience, we are moving beyond the polymer into semi-finished and finished products which shape future performance for our customers and our markets, enable environmental and societal benefit for our customers and drive value for our shareholders. Find out more at www.victrexplc.com

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
UPDUPUPWPUPCPUR
Date   Source Headline
28th Mar 20249:56 amRNSTotal Voting Rights
15th Mar 20248:30 amRNSDirectorate Change
6th Mar 20242:06 pmRNSDirector/PDMR Shareholding
29th Feb 20249:36 amRNSTotal Voting Rights
21st Feb 20248:00 amRNSBlock listing Interim Review
9th Feb 202412:16 pmRNSResult of AGM
9th Feb 20247:00 amRNSAGM & Q1 Interim Management Statement
31st Jan 202412:26 pmRNSTotal Voting Rights
25th Jan 202410:57 amRNSHolding(s) in Company
9th Jan 202412:13 pmRNSAnnual Report & Accounts
29th Dec 20239:00 amRNSTotal Voting Rights
12th Dec 202310:21 amRNSDirector/PDMR Shareholding
5th Dec 20232:42 pmRNSDirector/PDMR Shareholding
5th Dec 20232:33 pmRNSDirector/PDMR Shareholding
5th Dec 20237:00 amRNSVictrex plc - Preliminary Results 2023
1st Dec 202310:41 amRNSBlock listing Interim Review
30th Nov 202311:10 amRNSTotal Voting Rights
3rd Nov 20231:31 pmRNSHolding(s) in Company
31st Oct 20239:36 amRNSTotal Voting Rights
19th Sep 20231:59 pmRNSDirector/PDMR Shareholding
8th Sep 20239:32 amRNSHolding(s) in Company
31st Aug 20239:30 amRNSTotal Voting Rights
23rd Aug 202310:52 amRNSHolding(s) in Company
17th Aug 20231:27 pmRNSDirector/PDMR Shareholding
31st Jul 20239:39 amRNSTotal Voting Rights
18th Jul 202311:51 amRNSDirector/PDMR Shareholding
13th Jul 20232:00 pmRNSAdditional Listing
6th Jul 20237:00 amRNSVictrex plc - Q3 Interim Management Statement
3rd Jul 20234:03 pmRNSHolding(s) in Company
30th Jun 20239:37 amRNSTotal Voting Rights
27th Jun 202310:08 amRNSDirector/PDMR Shareholding
19th Jun 20232:27 pmRNSDirector/PDMR Shareholding
14th Jun 20237:00 amRNSTrading Statement
1st Jun 202312:08 pmRNSBlock listing Interim Review
31st May 20239:52 amRNSTotal Voting Rights
17th May 202310:55 amRNSDirector/PDMR Shareholding
16th May 202310:03 amRNSDirector/PDMR Shareholding
12th May 202310:37 amRNSDirector/PDMR Shareholding
11th May 202312:01 pmRNSDirector/PDMR Shareholding
10th May 20231:34 pmRNSDirector/PDMR Shareholding
9th May 20237:00 amRNSVictrex plc - Interim Results 2023
28th Apr 20239:33 amRNSTotal Voting Rights
18th Apr 20232:00 pmRNSHolding(s) in Company
18th Apr 202310:50 amRNSDirector/PDMR Shareholding
4th Apr 20237:00 amRNSDirectorate Change
31st Mar 202310:52 amRNSTotal Voting Rights
20th Mar 20233:07 pmRNSHolding(s) in Company
20th Mar 202310:15 amRNSDirector/PDMR Shareholding
13th Mar 202310:14 amRNSAdditional Listing
28th Feb 20239:35 amRNSTotal Voting Rights

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.