6th Feb 2019 08:52
LONDON (Alliance News) - Victrex PLC on Wednesday said its performance in the first quarter of its current financial year was weaker than anticipated with a double-digit fall in revenue and sales volumes.
The stock was trading 2.7% lower on Wednesday at 2,282.11 pence a share.
Ahead of its annual general meeting, the polymer solutions provider said its revenue in the three months to the end of December 2018 declined 18% to GBP64.1 million compared to GBP78.7 million the year prior.
Sales volumes in the first quarter also declined, down 22% on the prior year at 822 tonnes. Excluding volumes from a large consumer electronics contract, core business volumes were down 13% during the period.
Victrex said its pipeline of new products remains strong. In the Gears division, the company said it has passed advanced prototyping with a major global car manufacturer. Meanwhile, in the Medical unit, Victrex's partner Maxx Orthopedics is now ready to commence patient recruitment, following submission of the clinical trial for the Knee programme.
"Although the first quarter is always the seasonally weakest quarter for Victrex, this quarter has been slightly weaker than anticipated," said Chief Executive Jakob Sigurdsson.
"Pleasingly, January and February saw some initial improvement, although given our first quarter performance, the first half is expected to be much weaker overall, compared to the prior year," added Sigurdsson.
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