Victrex PLC Trading Statement (9436L)
July 25 2017 - 2:00AM
UK Regulatory
TIDMVCT
RNS Number : 9436L
Victrex PLC
25 July 2017
25 July 2017
Victrex plc: Interim Management Statement
'Continued growth; well-placed for FY17'
Victrex plc, an innovative world leader in high performance
polymer solutions, today releases its Interim Management Statement
for the third quarter (Q3) covering the period 1 April to 30 June
2017.
The Group has performed well since the end of the first half and
cash generation has continued to be strong.
Although the second half sees a tougher volume comparative,
particularly for Q4, our core business has remained in good growth,
with Automotive, Electronics (ex-Consumer) and Value Added
Resellers being notably strong. As expected, whilst we saw some
Consumer Electronics volumes during Q3, these were lower than the
prior year.
In Medical, the mature US Spine market continues to be a
challenge to short term-growth although Q3 performance was slightly
ahead of the prior year in constant currency. Pleasingly, our
differentiated and innovative PEEK-OPTIMA(TM) HA Enhanced product,
a premium and next generation offering which promotes bone-on
growth, has now secured first meaningful revenues of over GBP1m and
adoption rates are progressing.
Overall, Q3 Group revenue* was up 26% to GBP76.3m (Q3 2016:
GBP60.6m), with Group sales volume up 6% to 1,022 tonnes (Q3 2016:
966 tonnes). Year to date Group sales volume of 2,881 tonnes is 5%
up on the prior year (2016 YTD: 2,736 tonnes), with year to date
Group revenue of GBP207.3m up 17% (2016 YTD: GBP177.6m).
Currency continues to support top-line revenues, with hedges
placed at more favourable currency rates benefiting us during the
second half year. The anticipated currency benefit for our 2017
financial year is unchanged, and is expected to be weighted
approximately one-third/two-thirds between the first and second
half. For 2018, we are now over 60% covered for our currency
hedging programme.
In our growth pipeline, as well as meaningful revenue for
PEEK-OPTIMA(TM) HA Enhanced, several 2017 milestones have now been
delivered. In Automotive, in addition to our agreement to supply
PEEK Gears to a major European Automotive manufacturer from 2018,
we now have several new market-wide development programmes with
global manufacturers. In Aerospace, construction of our US
manufacturing facility is progressing for our TxV Aero Composites
joint venture, following pre-qualification of our differentiated
grades for loaded brackets last year. We are also developing some
strategic alliances in the Aerospace supply chain, as part of our
focus on composite parts, to complement this joint-venture.
Outlook
For the remainder of 2017, Consumer Electronics volumes are now
expected to be lower than our previous guidance, although
market-wide engagement programmes are progressing, offering both
volume and value opportunities for 2018, including for
differentiated applications. Overall, our strong core business
performance is more than offsetting lower Consumer Electronics and
may now offer a degree of upside potential for the full year.
Victrex remains well placed for 2017 and we continue to be
comfortable with current expectations.
For the medium to longer term, Victrex remains in a good
position, with a Polymer & Parts strategy to increase our
differentiation, a strong pipeline of potentially game-changing
projects, a focus on cost efficiency and a highly cash generative
business model.
Notes:
*Q3 and YTD revenue for FY 2017 includes sales from the Zyex
PEEK fibres acquisition (completed in April 2017).
Enquiries:
Victrex plc:
Andrew Hanson, Head of Investor Relations & Communications +44 (0) 1253 898121
Louisa Burdett, Group Finance Director +44 (0) 1253 897700
Teneo Blue Rubicon:
Charles Armitstead +44 (0) 207 260 2700
Analyst & investor conference call
A conference call for analysts & investors will be held
today at 08.30 BST. Dial in details: +44 (0) 203 139 4830, pin
54398114#
About Victrex:
Victrex is an innovative world leader in high performance
polymer solutions, focused on the strategic markets of automotive,
aerospace, energy (including manufacturing & engineering),
electronics and medical. Every day, millions of people use products
and applications, which contain our materials - from smart phones,
aeroplanes and cars to oil and gas operations and medical devices.
With over 35 years' experience, we develop world leading solutions
in PEEK and PAEK based polymers, semi-finished and finished parts
which shape future performance for our customers and our markets,
and drive value for our shareholders. Find out more at
www.victrexplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
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