8th Dec 2015 07:19
LONDON (Alliance News) - Specialty chemicals company Victrex PLC on Tuesday said its pretax profit and revenue both edged higher in the year to the end of September, despite taking a hit from the weak euro, as it outlined plans for an enhanced capital-return programme.
The FTSE 250-listed company, which manufactures polymers, films and coatings used across a range of industries, said its pretax profit for the year to September 30 was GBP106.4 million, up 4.0% from the GBP102.7 million it made a year earlier.
Revenue rose to GBP263.5 million from GBP252.6 million, up 4.0% but up by 8.0% in constant currencies, as the group suffered from the weak euro. Pretax profit would have increased 10% in constant currencies.
Victrex said its polymer solutions business, which focuses on the transport, industrial and electronics markets, performed well in the year, though this was partially offset by tougher conditions for its Invibio biomaterials business, which was impacted by consolidation in the US spine medical devices business.
The group will pay a final dividend of 35.09 pence per share, up from 33.76 pence, taking its total dividend up to 46.82p, up 4.0% from the 45.15p paid out the year earlier.
The company added it will implement a new capital allocation framework, under which investment in its growth will remain the top priority but which may see it pay out special dividends in the future, dependent on certain cash targets being hit.
David Hummel, Victrex's chief executive, commented: "2015 was a good year overall for Victrex, where our strong and balanced portfolio helped to drive growth, fully overcoming the significant headwinds we faced from foreign currency, weaker oil and oas and US medical industry consolidation."
By Sam Unsted; [email protected]; @SamUAtAlliance
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