Victrex outlook for 2022 unchanged, as revenue grows in first quarter

(Alliance News) - Victrex PLC on Friday said it expects to deliver growth in its full financial ...

Alliance News 11 February, 2022 | 8:38AM
Email Form Facebook Twitter LinkedIn RSS

(Alliance News) - Victrex PLC on Friday said it expects to deliver growth in its full financial year, after revenue rose in the first quarter.

The Lancashire, England-based speciality chemicals firm said its 2022 financial year was off to a strong start. In its first quarter ended December 31, revenue was 9.2% up from GBP68.7m in the previous year, to GBP74.6 million.

Sales volumes in the period were 16% ahead of the previous year, to 1,025 tonnes from 883 tonnes.

In the financial year to date, from October 1 to January 31, revenue and sales volumes were ahead of a year before, with volume growing by double digits.

End-market performance in Electronics, Energy & Industrial, Medical, and Value Added Resellers also grew year-on-year in the first quarter. Automotive was "modestly" down, owing to the current challenges in the industry. Its performance was improved on the preceding quarter, however.

Medical revenue in the quarter in Asia-Pacific came in at a record high, but were slightly offset by a drop in US revenues, as the Omicron variant outbreak reduced surgery rates during the period.

Victrex said it remains "highly cash generative", with cash reserves of GBP113.6 million at the end of December. The year ahead will see high capital expenditure, as the chemicals company plans to spend GBP60 million to boost capacity in China and improve its UK assets.

Looking ahead, Chief Executive Jakob Sigurdsson said: "This is a solid start to FY 2022, with continuing momentum and healthy top-line demand. Expectations for the full year are unchanged at this early stage. Whilst we anticipate further volume improvement across several end markets, we are mindful of headwinds including currency, raw material costs and increasing energy inflation. Overall, we continue on plan to deliver year-on-year growth in FY 2022."

Victrex's share price fell by 2.9% to 1,990.00 pence in London on Friday morning.

By Elizabeth Winter; elizabethwinter@alliancenews.com

Copyright 2022 Alliance News Limited. All Rights Reserved.

Email Form Facebook Twitter LinkedIn RSS

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Victrex PLC 1,086.07 GBX 0.94 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures