6th Feb 2020 09:26
(Alliance News) - Polymer maker Victrex PLC on Thursday left its annual expectations unchanged after a "solid start" to its new financial year.
In the first quarter ended December 31, revenue was 5.6% higher at GBP67.7 million from GBP64.1 million the year prior, with sales volumes 6.7% higher year-on-year at 877 tonnes.
"On a year-to-date basis, the group remains ahead of last year, with performance in January being broadly in line with the strong January of the prior year," Victrex said, ahead of its annual general meeting on Thursday.
Its Automotive unit delivered "good year-on-year and sequential growth" and progress in the Aerospace unit has continued. Victrex warned of "some headwinds" in the aerospace industry this year however.
Victrex said: "In Medical, we saw a stable performance, with good growth continuing in Asia."
The company in January said it will partner with Chinese firm Yingkou Xingfu Chemical Co Ltd to build a manufacturing unit in Liaoning, in the north east of China.
Victrex, through its Hong Kong subsidiary, will be the 75% owner of the joint-venture, which aims to build a polyether ether ketone, or PEEK, polymer manufacturing facility. Victrex's PEEK polymers can be used in medical devices, and in the aerospace and automotive industries.
The company said it will invest GBP32 million in the partnership, and the facility will be capable of producing 1,500 tonnes of polymers per year.
Chief Executive Jakob Sigurdsson said: "Whilst it is pleasing to see some year-on-year progress in Automotive, partly reflecting phasing, and continuing signs of stability in Electronics and Value Added Resellers, we note the weaker performance in Energy, in line with recent industry commentary. Overall, our expectations are unchanged and at this early stage, we continue to be focused on making year-on-year progress."
Shares in the company were 0.5% higher at 2,358.00 pence each in London on Thursday morning.
By Eric Cunha; [email protected]
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