REG - Victrex PLC - Half Yearly Report <Origin Href="QuoteRef">VCTX.L</Origin> - Part 2

VictrexAnnouncement

15/07/2015 18:14

- Part 2: For the preceding part double click  ID:nRSS5698Na 

with effect from 1 April
2014, with a further reduction from 21% to 20% with effect from 1 April 2015. 
 
In accordance with IAS 12 - Income Taxes, the deferred tax liabilities and
assets have been calculated using a rate of 20%, being the rate being the
expected applicable rate when these assets and liabilities are realised /
settled. 
 
7.   Earnings per share 
 
                                         Six months ended31 March 2015  Six months ended31 March 2014  Year ended30 September 2014  
 Earnings per share                      - basic                        49.8p                          45.1p                        94.6p       
                                         - diluted                      49.6p                          45.0p                        94.3p       
 Profit for the financial period (£m)    42.4                           38.2                           80.2                         
 Weighted average number of shares used  - basic                        85,116,667                     84,593,019                   84,758,627  
                                         - diluted                      85,345,828                     84,888,647                   85,062,847  
                                                                                                                                                  
 
 
8.   Exchange rates 
 
The most significant Sterling exchange rates used in the financial statements
under the Group's accounting policies are: 
 
            Six months ended31 March 2015  Six months ended31 March 2014  Year ended30 September 2014  
            Average                        Closing                        Average                      Closing  Average  Closing  
 US Dollar  1.66                           1.48                           1.56                         1.67     1.60     1.62     
 Euro       1.23                           1.38                           1.19                         1.21     1.19     1.28     
 Yen        172                            178                            150                          172      155      178      
 
 
9.   Reconciliation of profit to cash generated from operations 
 
                                                            Six months ended31 March 2015£m  Six months ended31 March 2014£m  Year ended30 September 2014£m  
 Profit after tax for the period                            42.4                             38.2                             80.2                           
 Income tax expense                                         11.5                             10.7                             22.5                           
 Net financing income                                       (0.2)                            (0.3)                            (0.5)                          
 Operating profit                                           53.7                             48.6                             102.2                          
 Adjustments for:                                                                                                                                            
 Depreciation                                               5.5                              4.8                              10.0                           
 Loss on disposal of non-current assets                     0.1                              -                                1.3                            
 (Increase)/decrease in inventories                         (3.1)                            2.5                              6.7                            
 Decrease/(increase) in trade and other receivables         1.2                              (2.6)                            (6.5)                          
 (Decrease)/increase in trade and other payables            2.0                              1.2                              4.5                            
 Equity-settled share-based payment transactions            0.8                              0.4                              1.1                            
 Changes in fair value of derivative financial instruments  1.5                              (1.0)                            (0.1)                          
 Retirement benefit obligations charge less contributions   (0.8)                            (0.8)                            (0.9)                          
 Cash generated from operations                             60.9                             53.1                             118.3                          
 
 
Cash generated from operations 
 
60.9 
 
53.1 
 
118.3 
 
10.   Related party transactions 
 
The Group's related parties are as disclosed in the Annual Report and
Financial Statements 2014. There were no material differences in related
parties or related party transactions in the six months ended 31 March 2015
except for transactions with key management personnel. The most significant of
these was on 15 December 2014, under the 2009 Long Term Incentive Plan
('LTIP'), when 29,749, 15,848 and 13,735 share option awards were granted to D
R Hummel, L S Burdett and T J Cooper respectively at an option price of nil p
per share when the market price was 1,943p per share. 
 
Responsibility Statement of the Directors 
 
The Directors confirm that to the best of their knowledge: 
 
·     The condensed consolidated interim financial statements have been
prepared in accordance with IAS 34 - Interim Financial Reporting as adopted by
the European Union; and 
 
·     The Interim Management Report includes a fair review of the information
required by: 
 
(a)  DTR 4.2.7R of the Disclosure and Transparency Rules of the Financial
Conduct Authority, being an indication of important events that have occurred
during the first six months of the financial year and their impact on the
condensed consolidated financial statements and a description of the principal
risks and uncertainties for the remaining six months of the year; and 
 
(b)  DTR 4.2.8R of the Disclosure and Transparency Rules of the Financial
Conduct Authority, being: 
 
i.  related party transactions that have taken place in the first six months
of the current financial year and that have materially affected the financial
position or performance of the entity during that period; and 
 
ii. any changes in the related party transactions described in the last Annual
Report that have done so. 
 
The Directors of Victrex plc are detailed on pages 32 and 33 of the Victrex
plc Annual Report 2014. In addition Martin Court joined the Board as an
Executive Director, along with Andrew Dougal joining as Non-executive
Director, in March 2015. 
 
By order of the Board 
 
Louisa Burdett 
 
Group Finance Director 
 
19 May 2015 
 
Forward-looking Statements 
 
Sections of this Half-yearly Financial Report contain forward-looking
statements, including statements relating to: future demand and markets for
the Group's products and services; research and development relating to new
products and services; and liquidity and capital resources. These
forward-looking statements involve risks and uncertainties because they relate
to events that may or may not occur in the future. Accordingly, actual results
may differ materially from anticipated results because of a variety of risk
factors, including: changes in interest and exchange rates; changes in global,
political, economic, business, competitive and market forces; changes in raw
material pricing and availability; changes to legislation and tax rates;
future business combinations or disposals; relations with customers and
customer credit risk; events affecting international security, including
global health issues and terrorism; changes in regulatory environment; and the
outcome of litigation. 
 
Independent Review Report to Victrex plc 
 
Introduction 
 
We have been engaged by the Company to review the condensed set of financial
statements in the Half-yearly Financial Report for the six months ended 31
March 2015 which comprises the Condensed Consolidated Income Statement,
Condensed Consolidated Statement of Comprehensive Income, Condensed
Consolidated Balance Sheet, Condensed Consolidated Cash Flow Statement,
Condensed Consolidated Statement of Changes in Equity and the related
explanatory notes. We have read the other information contained in the
Half-yearly Financial Report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the
condensed set of financial statements. 
 
This report is made solely to the Company in accordance with the terms of our
engagement to assist the Company in meeting the requirements of the Disclosure
and Transparency Rules ('the DTR') of the UK's Financial Conduct Authority
('the UK FCA'). Our review has been undertaken so that we might state to the
Company those matters we are required to state to it in this report and for no
other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company for our review work,
for this report, or for the conclusions we have reached. 
 
Directors' responsibilities 
 
The Half-yearly Financial Report is the responsibility of, and has been
approved by, the Directors. The Directors are responsible for preparing the
Half-yearly Financial Report in accordance with the DTR of the UK FCA. 
 
The annual financial statements of the Company are prepared in accordance with
IFRS as adopted by the EU. The condensed set of financial statements included
in this Half-yearly Financial Report has been prepared in accordance with IAS
34 - Interim Financial Reporting as adopted by the EU. 
 
Our responsibility 
 
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the Half-yearly Financial Report based on our
review. 
 
Scope of review 
 
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 Review of Interim Financial Information
Performed by the Independent Auditor of the Entity issued by the Auditing
Practices Board for use in the UK. A review of interim financial information
consists of making enquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK and Ireland) and consequently
does not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do
not express an audit opinion. 
 
Conclusion 
 
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the Half-yearly
Financial Report for the six months ended 31 March 2015 is not prepared, in
all material respects, in accordance with IAS 34 as adopted by the EU and the
DTR of the UK FCA. 
 
Stuart Burdass (Senior Statutory Auditor) 
 
for and on behalf of KPMG LLP 
 
Chartered Accountants 
 
1 St Peter's Square 
 
Manchester 
 
M2 3AE 
 
19 May 2015 
 
Shareholder Information 
 
The Company's Annual Reports and Half-yearly Financial Reports are available
on request from the Company's Registered Office or to download from our
corporate website, www.victrexplc.com. 
 
 Financial calendar                                         
                                                            
 Ex-dividend date for interim dividend   11 June 2015       
 Record date for interim dividend **     12 June 2015       
 Payment of interim dividend             30 June 2015       
 2015 year end                           30 September 2015  
 Announcement of 2015 full year results  December 2015      
 Annual General Meeting                  February 2016      
 Payment of final dividend               February 2016      
 
 
Victrex plc 
 
Registered in England 
 
Number 2793780 
 
Registered Office: 
 
Victrex Technology Centre 
 
Hillhouse International 
 
Thornton Cleveleys 
 
Lancashire FY5 4QD 
 
United Kingdom 
 
Tel:   +44 (0) 1253 897700 
 
Fax:  +44 (0) 1253 897701 
 
Web: www.victrexplc.com 
 
* Operating cash conversion: Cash generated from operations/operating profit 
 
** The date by which shareholders must be recorded on the share register to
receive the dividend 
 
This information is provided by RNS
The company news service from the London Stock Exchange