REG - Victrex PLC - AGM & Q1 Interim Management Statement

VictrexAnnouncement

10/02/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230210:nRSJ5110Pa&default-theme=true

RNS Number : 5110P  Victrex PLC  10 February 2023

 

10 February 2023

Victrex plc - AGM & Q1 Interim Management Statement

'A steady start: pricing ahead of expectations and revenue up 6%, despite
volume softness'

Victrex plc is an innovative world leader in high performance polymer
solutions, delivering sustainable products which enable environmental and
societal benefit in multiple end-markets. Today's Interim Management Statement
(IMS) covers the first quarter of FY 2023 from 1 October 2022 to 31 December
2022.

 

Overall, the Group saw a steady start, in what is typically the seasonally
weakest quarter. Average selling prices (ASP) were ahead of expectations, with
good momentum from price increases and surcharge pricing. This helped to drive
revenue up 6%, despite an 8% decline in Q1 volume; slightly softer than
anticipated.

Highlights

·      Q1 Group revenue £78.8m up 6% (Q1 2022: £74.6m)

·      ASP up 14% at £83/kg and slightly ahead of expectations; driven
by sales mix, annualised price increases, surcharge pricing and currency

·      Q1 Group sales volume of 948 tonnes down 8% on the prior year (Q1
2022: 1,025 tonnes)

·      Supporting TechnipFMC for Brazil scale-up ahead of bid outcome
for Magma pipe opportunity

·      Share buybacks now included alongside special dividends for
excess cash return options, following shareholder engagement

 

End market performance

Q1 performance reflected reduced activity across several Industrial end
markets, particularly in Europe, together with some normalisation within Value
Added Resellers (VAR) after a period of strong growth. The Group saw growth in
Aerospace and Automotive during the period, which was offset by weakness in
Electronics and Energy & Industrial.

 

In Medical, we continue to see a good performance. Q1 revenue was strongly
ahead of the comparative period, which included the impact of Covid-19
variants and lockdowns in the US, in Europe and Asia.

 

Mega-programmes

The Group has an attractive portfolio of short, medium and long-term growth
opportunities, including seven 'mega-programmes' offering potentially game
changing growth opportunities.

 

In our Magma mega-programme, which is based on thermoplastic composite pipe
for the energy industry using Victrex PEEK, Victrex composite tape and
Victrex's pipe extrusion know-how, we continue to support TechnipFMC for
qualification and scale-up at a new facility in Brazil. Bid outcomes for a key
offshore programme in Brazil are anticipated over the coming months, offering
the potential opportunity for significant annual volumes, over a multi-year
period.

 

In our PEEK Knee mega-programme, we have seen further strong progress. Patient
recruitment to the Maxx Orthopaedics clinical trial is largely complete, with
33 implanted patients. Ten patients have passed the primary end-point for the
clinical trial (15 months), with no issues or intervention required. Two
patients will pass the two-year implant stage this month. In Trauma, In2Bones
has continued to make strong progress, with our PEEK composite based Trauma
plates now being implanted in over 80 patients.

 

Financial position

Victrex retains a highly cash generative business model, supporting growth
investment alongside attractive shareholder returns. Available cash of £60.8m
at 31 December 2022 (excluding £2.3m of cash ringfenced in our Chinese
subsidiaries), is prior to payment of the 2022 final dividend on 17
February.

 

Outlook

Jakob Sigurdsson, Chief Executive of Victrex, said: "Expectations for the full
year are unchanged at this early stage. We are encouraged by modest revenue
growth, a better sales mix and improved selling prices. We also continue to
make good progress in recovering energy and raw material inflation.

 

"However, the Group saw softer volumes during Q1 and the macro-economic
environment remains uncertain, with ongoing weakness in several end-markets.
In line with Victrex's historic performance, we remain well positioned for
when end-markets improve.

 

"With sustainable products and a strong pipeline of growth opportunities, our
Polymer & Parts strategy keeps us well positioned for the medium to
long-term."

 

Analyst & investor conference call

A conference call with management will take place this morning, Friday 10(th)
February 2023, at 08.30am GMT. Access to the call is via the following link:
https://cossprereg.btci.com/prereg/key.process?key=PYTAVPVQF
(https://cossprereg.btci.com/prereg/key.process?key=PYTAVPVQF)

 

Annual General Meeting

Victrex's Annual General Meeting will also be held today, starting at 11.00am
GMT and taking place at JP Morgan, 1 John Carpenter Street, London EC4Y 0JP.

 

Victrex plc:

Andrew Hanson, Director of Investor Relations, Corporate Communications &
ESG   +44 (0)7809 595831

Ian Melling, Chief Financial Officer
 
  +44 (0)1253 897700

Jakob Sigurdsson, Chief Executive
                                                  +44
(0)1253 897700

 

About Victrex:

Victrex is an innovative world leader in high performance polymer solutions,
focused on the strategic markets of Automotive, Aerospace, Energy &
Industrial, Electronics and Medical. Every day, millions of people rely on
products or applications which contain our sustainable materials, from
smartphones, aeroplanes and cars to energy operations and medical devices.
With over 40 years' experience, we are moving beyond the polymer into
semi-finished and finished products which shape future performance for our
customers and our markets, enable environmental and societal benefit for our
customers and drive value for our shareholders. Find out more at
www.victrexplc.com (http://www.victrexplc.com)

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  QRFUPUPCPUPWGRB