3rd Dec 2024 10:37
(Alliance News) - Victrex PLC on Tuesday said it has the chance to deliver underlying pretax profit growth ahead of volume growth, citing its confidence in delivering growth opportunities.
The Lancashire, England-based polymer solutions provider for automotive, aerospace, energy and industrial, electronics, and medical markets said pretax profit fell 68% to GBP23.4 million in the financial year that ended September 30 from GBP72.5 million a year ago.
Notably, exceptional items costs increased to GBP35.7 million from GBP7.5 million.
Adjusted pretax profit, which exclude these, fell less steeply, by 26% to GBP59.1 million from GBP80.0 million.
Revenue contracted 5.2% to GBP291.0 million from GBP307.0 million. This reflected Medical destocking and foreign exchange rates, Victrex noted. Medical revenue was down 19% at GBP53.0 million from GBP65.2 million.
Cost of sales increased 18% to GBP161.9 million from GBP136.8 million.
The company maintained its final dividend at 46.14 pence per share, bringing its total payout to 59.56p, unchanged from a year ago.
In the fourth quarter of financial 2024, sales volumes were up 21% on-year to 1,015 tonnes. This helped sales volume for all of financial 2024 edge up 3.7% to 3,731 tonnes from 3,598 in financial 2023.
Victrex shares jumped 15% to 1,009.38 pence each on Tuesday morning in London.
Looking ahead, CEO Sigurdsson said: "If current demand levels remain on track, with some seasonality in our Q1, a run-rate across the rest of the year similar to the FY 2024 exit rate - of around 1,000 tonnes per quarter - offers the potential for at least mid- single digit volume growth."
He added that Victrex has the opportunity to deliver underlying pretax profit growth ahead of volume growth after the impact of currency, which it said is now a GBP7 million to GBP8 million headwind to pretax profit in financial 2025.
By Tom Budszus, Alliance News slot editor
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