9th Oct 2014 06:58
LONDON (Alliance News) - Victrex PLC Thursday reported strong growth in sales volumes for its last financial year, but kept its profit expectations unchanged.
In a statement, the high-performance polymer company said growth momentum has remained positive in the first weeks of its current financial year, although it is still facing a significant hit from unfavourable currency exchange rates.
It said sales volumes grew 22% to 3,551 tonnes in the year to September 30, from 2,920 tonnes a year earlier, with growth coming across its automotive, aerospace, energy, electronics and medical markets. The growth had accelerated in the second half of the year, with sales volumes up 29% to 1,967 tonnes, from 1,528 tonnes.
"Although sales volumes were particularly strong, our profit expectations remain largely unchanged," it said without explaining why.
Victrex said it saw strong volume growth in its Polymer Solutions business, partly driven by higher-than-expected volumes in the second half of the year from consumer electronics. Stripping out sales volumes across the entire electronics segment, second half year sales volume increased 6% on the prior year, it said.
"Our higher margin Speciality Products business, including Aptiv film, again performed well during the year. With continued growth in Aptiv, we will bring an additional production line on stream during the first half of our new financial year," the company said.
Full-year revenue grew 5% to GBP53.4 million, from GBP50.8 million, in its higher-margin Invibio medical business, reflecting a steady improvement in the spine market. It said the focus in the current financial year will be rolling-out new spine market products.
It has lodged regulatory applications in the US and Europe for its PEEK-OPTIMA HA-enhanced product, which enhances bone-on-growth, and will launch the product in the first half as long as it gets regulatory approval.
"As we start our new financial year, our growth momentum remains positive. Although currency headwinds remain considerable in 2015, our forthcoming new PEEK and Aptiv film capacity, technical excellence and marketing know-how keep us well placed to continue driving growth and creating value, in line with our long term strategy," the company said in a statement.
By Steve McGrath; [email protected]; @stevemcgrath1
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