REG - Victrex PLC - Interim Management Statement <Origin Href="QuoteRef">VCTX.L</Origin>

VictrexAnnouncement

25/07/2015 09:40

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RNS Number : 5569T
Victrex PLC
21 July 2015 
 
21 July 2015 
 
Victrex plc - Interim Management Statement 
 
"Solid trading and acquisition of Kleiss Gears" 
 
Victrex plc, an innovative world leader in high performance polymer solutions,
today announces its Interim Management Statement for the period 1 April 2015
to 30 June 2015 (Q3) and the acquisition of Kleiss Gears Incorporated for a
cash consideration of approximately $6m. 
 
Victrex saw solid trading against tougher comparatives during Q3, with our
performance reflecting continuing growth across our industrial markets, which
is offsetting sales to Oil & Gas and a lower contribution from our Invibio
medical business. Third quarter Group revenue of £64.5m was flat compared to
the prior year period (Q3 2014: £64.2m) and slightly ahead in constant
currency, with third quarter Group sales volume of 1,070 tonnes 17% ahead of
the prior year (Q3 2014: 911 tonnes). Year to date Group sales volume of 3,098
tonnes is 24% ahead of the prior year (YTD 2014: 2,495 tonnes). 
 
Within Victrex Polymer Solutions (VPS), Consumer Electronics volumes remain
strong and, as previously communicated, we expect volumes from the current
opportunity to continue through our 2016 financial year. 
 
In our Invibio medical business, the sales improvement trend we saw in Q2 did
not continue as we anticipated during Q3. Overall sales were down during the
quarter, driven lower by the continued effects of consolidation in the US
medical device industry.  However, outside of the US, sales in Europe and
emerging markets remain positive.  On a full year basis, we now anticipate
Invibio revenue will be lower than 2014. Our expectation is for full year
sales to decline by a broadly similar level to the 4% reduction seen in the
first half year. 
 
All of our new product platforms and adoption programmes continue to make
positive progress, including those in medical for PEEK-OPTIMA® HA-Enhanced
(Spine), Dental, Trauma and Knee. 
 
Acquisition of Kleiss Gears 
 
Victrex is pleased to announce the acquisition of Kleiss Gears, a US based
polymer gears' manufacturer, for approximately $6m (£3.8m) in cash. 
 
Kleiss has over 20 years' experience of unique design and precision moulding
capability in gears, and will benefit from Victrex's materials know-how,
existing customer relationships and global commercial reach.  Kleiss has early
stage commercialisation of PEEK gear programmes, alongside the rest of its
mainly industrial focused gears business. 
 
The acquisition is in line with Victrex's strategy of moving further
downstream and investing in growth acceleration opportunities for its pipeline
projects. It offers the opportunity to accelerate Victrex's PEEK gear
proposition to the automotive industry, in line with our aim to double the
amount of PEEK volume in cars over the medium term. 
 
For its 2014 financial year, Kleiss had revenues of approximately $4m and
employed 26 people. 
 
Outlook 
 
For the year as a whole, whilst challenges continue in the Oil & Gas market
and in improving Invibio's performance, our overall momentum remains positive
and we still expect to fully overcome the impact of foreign currency. 
Consequently, and reflecting our balanced portfolio, Victrex remains well
positioned to deliver profit progress over the full year. 
 
Cash generation remains healthy and there have been no significant changes to
the Group's financial position since our interim results announcement. 
 
Enquiries: 
 
Victrex plc: 
 
Andrew Hanson, Head of Investor Relations & Communications                    
        +44 (0) 1253 898121 
 
Louisa Burdett, Group Finance Director                                        
                       +44 (0) 1253 897700 
 
David Hummel, Chief Executive                                                 
                         +44 (0) 1253 897700 
 
Pendomer Communications: 
 
Charles Armitstead                                                            
                               +44 (0) 203 603 5220 
 
About Victrex: 
 
Victrex is an innovative world leader in high performance polymer solutions
focused on the Aerospace, Automotive, Electronics, Energy and Medical markets.
Every day, millions of people rely on products or applications which contain
our polymers, from smartphones, aeroplanes and cars to oil & gas operations
and medical devices. With over 35 years' experience, we are investing in
technical excellence to deliver leading edge solutions to our customers and
our markets, and to drive value for our shareholders. Find out more at
www.victrexplc.com 
 
Investor and analyst call: 
 
A call for investors and analysts will be held today, Tuesday 21 July at
08.00am UK time. For dial in details please contact Laura Stewart at Pendomer
Communications: laura.stewart@pendomer.com or +44 (0) 203 603 5229. 
 
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