20th May 2014 11:18
LONDON (Alliance News) - Victrex PLC said Tuesday revenue and pretax profit rose in its half-year, as it recorded "broad based growth" across its markets and the firm boosted its dividend for the period.
The polymer solutions company said it has seen a strong start to 2014 with continued growth momentum. In its interim results for the six months to March 31, 2014 revenue rose 13% to GBP120 million from GBP106.4 million in the comparative half-year. Pretax profit rose 7% to GBP48.9 million from GBP45.7 million the first-half of 2013.
Group sales volume also rose, up 14% to 1,584 tonnes from 1,392 tonnes last year, following a much stronger second quarter performance which was ahead of the firm's expectations, said Victrex.
The company has also upped its interim dividend payment to 11.39 pence per share, up from 10.35 pence per share last year, a 10% rise.
On a divisional basis, the firm said strong trading in the Victrex Polymer Solutions division was driven by core PEEK resin sales with its Invibio business returning to growth; in Speciality Products demand remains strong, said Victrex, reporting double-digit sales growth for the period.
VPS revenue rose 13% to GBP93.1 million from GBP82.2 million for the comparable half-year. Invibio revenue rose 11% to GBP26.9 million from GBP24.2 million in the first-half 2013.
Group gross margin came in at 64.0%, down from 67.2% in 2013, reflecting a softer sales mix and some adverse currency movement as the second quarter outperformance saw some sales come through un-hedged, said Victrex. However, the reported margins reflect cost of manufacture, mix and currency in its first-half year, it said.
Looking ahead, the company said a major capacity expansion - PEEK Powder Plant 3 - is now scheduled for commissioning in early 2015. Victrex said the new site will support core growth and new business opportunities, principally in the short lifecycle Electronics market.
"Our second half has started well, with initial volume trends building on our first half performance. Although we remain mindful of increasing currency headwinds as we move towards 2015, our continued growth momentum means our expectations for the full year are well supported. We will continue to focus on driving growth and creating value across our strategic markets," said non-executive Chairman Anita Frew.
In a separate announcement Tuesday the company said Frew will retire as non-executive Chairman of the firm on September 30, 2014 after serving in the position for the last six years. She will be succeeded as Chairman by Lawrence Pentz, who is currently a non-executive director of the firm.
Shares in the polymer firm were trading 3.35% higher at 1,756 pence per share Tuesday afternoon, one of the biggest risers on the FTSE 250.
By Alice Attwood; [email protected]; @AliceAtAlliance
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