REG - Victrex PLC - Preliminary Results
Today 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20251202:nRSB7828Ja&default-theme=true
RNS Number : 7828J Victrex PLC 02 December 2025
2 December 2025
Victrex plc - Preliminary Results 2025
STRONG VOLUMES OFFSET BY SALES MIX, FX & CHINA START-UP
H2 PBT IN-LINE WITH H1
PROFIT IMPROVEMENT PLAN UNDERWAY
Victrex plc is an innovative world leader in high performance polymers,
delivering sustainable products which enable environmental and societal
benefit across aerospace, automotive, electronics, energy & industrial and
medical. This announcement covers preliminary results (audited) for the 12
months ended 30 September 2025.
FY 2025 FY 2024 % change (reported) % change
(constant currency(1))
Group sales volume 4,164 tonnes 3,731 tonnes +12% N/A
Group revenue £292.7m £291.0m +1% +3%
Gross profit £132.6m £134.3m -1% +5%
Gross margin (GM) 45.3% 46.2% -90bps N/A
Underlying profit before tax (PBT)(1) £46.4m £59.1m -21% -10%
Underlying EPS(1) 43.9p 51.7p -15% N/A
Reported PBT £33.8m £23.4m +44% +157%
Basic EPS 32.0p 19.8p +62% N/A
Dividend per share 59.56p 59.56p flat N/A
Net debt £24.8m £21.1m +18% N/A
Key points:
· Strong volumes, up 12%
- FY 2025 Group volumes 4,164 tonnes (FY 2024: 3,731t) driven by VARs* and
Energy & Industrial
· Revenue up 1%
- Average selling price ('ASP') £70/kg (FY 2024: £78/kg); c80% of year-on-year
movement due to sales mix and FX; like-for-like pricing broadly stable in
non-VAR/Energy & Industrial end markets
- Medical revenue down 5% at £58.8m driven by Spine; 7% growth in Non-Spine
business (including 12% growth in Non-Implantable Medical)
· Underlying PBT down 21% to £46.4m on FX, China costs & sales mix; H2 PBT
in line with H1
- FY 2025 underlying PBT down 10% in constant FX
- Reported PBT up 44% at £33.8m after £12.6m (FY 2024: £35.7m) of exceptional
items
- FY 2025 GM in line with guidance at 45.3%; down 90 bps on mix, £8m impact
from new China plant** & FX
- Improved underlying operating cash conversion(1) of 121% (FY 2024: 114%)
- FY 2025 net debt £24.8m (FY 2024: £21.1m) (including cash of £24.2m (FY
2024: £29.3m)) with RCF repaid. Net debt/EBITDA 0.34x at year-end
· Profit Improvement Plan underway
- Profit Improvement Plan underway targeting at least £10m of further savings;
full year benefits in FY 2027, significantly building on existing self-help
and 'Go to Market' improvements
- Broader review of operations to be implemented in FY 2026, targeting further
commercial, cost and operating efficiencies, driving business simplification
· Updated capital allocation policy: dividend maintained
- Reflecting all stakeholder interests; new net debt/EBITDA(1) range of
0.5x-1.0x targeted
- Dividends maintained vs FY 2024 (proposed final dividend 46.14p (FY 2024:
46.14p/share))
- Dividends maintained at current level, provided net debt/EBITDA(1) target
range not exceeded; excess cash returns available via share buybacks or
special dividends when net debt/EBITDA(1) moves sustainably below 0.5x
*Value Added Resellers
**China start-up impact reflects a full year annualised operating loss of
£8m, with a year on year adverse impact of £4m
(1) Alternative performance measures are defined in note 13.
Jakob Sigurdsson, Chief Executive of Victrex, commented:
"Amidst a challenging economic environment, Victrex delivered 12% growth in
sales volume, driven by VARs and Energy & Industrial. Medical continued to
be impacted by weaker Spine sales. Like for like pricing was broadly stable in
key end-markets outside of VARs and Energy & Industrial, with
approximately 80% of the year on year movement from £78/kg to £70/kg due to
an adverse sales mix - in both divisions - and currency.
"As expected, Medical revenues overall were 5% lower, driven by Medical Spine
(26% of revenues) with porous and titanium based products continuing to regain
market share in US Spine, and the challenge of Volume Based Pricing (VBP) on
Spine in China. Non-Spine revenues were up 7%.
"Underlying PBT was down 21%. This primarily reflected a significant currency
impact of c£8m and a weaker sales mix, with improved VARs and a softer
performance in Medical. In our new China manufacturing facility, we made good
progress to support operational performance, though, as previously indicated,
the annualised impact from production start-up reduced profits by £8m,
compared to £4m in the prior year. FY 2026 will remain loss making for this
facility, though volumes will improve from a low base. China remains the
fastest growing region for our broader business, with a strong growth
pipeline.
PROFIT IMPROVEMENT PLAN
"FY 2025 saw us take a number of improvement actions, building on recent
foundational investments with our ERP system and increased digitalisation.
These included an enhanced Go to Market strategy, lowering cost of manufacture
and £2m of procurement savings. We have announced today our Profit
Improvement Plan is underway, focusing on a more agile and delivery focused
Group and targeting at least £10m of annual savings, with the majority of
full year benefits in FY 2027. Alongside these actions, we have also announced
an updated capital allocation framework, with dividends maintained vs FY 2024.
FY 2026 OUTLOOK & GUIDANCE SUMMARY
· Volumes Low to mid-single digit % growth
· ASP Broadly stable with FY 2025, similar sales mix
· Gross margin Flat to slightly ahead (range 45.5%-46.5%)
· Currency £2m-£3m adverse impact (at current exchange rates)
· Mindful of wider macro-economic conditions: targeting solid progress on FY
2025; H2 weighting reflects normal seasonality and the higher FX headwind in
H1 2026
"Although FY 2026 will be a transitional year, our foundations are strong,
with a differentiated product portfolio across key end markets, well-invested
assets and an addressable market approximately five times current levels,
offering significant long-term opportunities for VICTREX(TM) PEEK. We will
create a simpler and even more focused growth business, improving cost to
serve and driving significant value creation for all stakeholders."
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 use
products and applications which contain our sustainable materials - from
smartphones, aeroplanes and cars to energy production and medical devices.
With over 40 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, enable environmental and
societal benefits, and drive value for our shareholders. Find out more
at www.victrexplc.com (http://www.victrexplc.com) .
Analyst & investor meeting:
A presentation for analysts and investors will be held at 09.00am (UK time)
this morning at JP Morgan, 1 John Carpenter Street, London, EC4Y 0JP. A copy
of the presentation can be downloaded from our corporate website at
www.victrexplc.com (http://www.victrexplc.com) under the Investors / Results
& Presentations tab. A dial in facility will be available, which can be
accessed by registering on the following link:
Victrex Year End Results Meeting Registration Page!
(https://registrations.events/direct/LON6393577)
Victrex plc:
Andrew Hanson, Director of Investor Relations, Corporate Communications & +44 (0) 7809 595831
ESG
Ian Melling, Chief Financial Officer +44 (0) 1253 897700
Jakob Sigurdsson, Chief Executive +44 (0) 1253 897700
Preliminary results statement for the 12 months ended 30 September 2025
STRONG VOLUMES OFFSET BY MIX, FX & CHINA START-UP
H2 PBT IN-LINE WITH H1
PROFIT IMPROVEMENT PLAN UNDERWAY
Volume (t) Revenue (£m)
FY 2025 FY 2024 Growth FY 2025 FY 2024 Growth
Transport (Aero & Auto) 1,012 1,022 -1%
Electronics 464 454 +2%
Energy & Industrial 705 604 +17%
VARs 1,797 1,488 +21%
Sustainable Solutions 3,978 3,568 +11% 233.9 229.1 +2%
Medical 186 163 +14% 58.8 61.9 -5%
Total Group 4,164 3,731 +12% 292.7 291.0 +1%
Operating review
Strong volumes, driven by Sustainable Solutions
Group sales volume of 4,164 tonnes was up 12% on the prior year (FY 2024:
3,731 tonnes), driven by Sustainable Solutions and in particular the end
markets of Value Added Resellers ('VARs') and Energy & Industrial.
Revenue up 1%, reflecting sales mix, weaker Medical Spine and currency
FY 2025 Group revenue was up 1% at £292.7m (FY 2024: £291.0m) and up 3% in
constant currency. Performance reflects that whilst sales volume was strong,
revenue growth lagged volume growth due to improved performance being
concentrated in VARs and Energy & Industrial end markets, as well as
revenues being much softer in Medical Spine.
Solid Q4 performance momentum
Sales volume momentum continued in Q4, with sales volume up 7% (Q4 volumes of
1,089 tonnes vs Q4 2024: 1,015 tonnes), and Group revenue slightly down at
£75.5m (Q4 2024: £77.7m), reflecting a continuation of sales mix and Medical
Spine weakness.
ASP of £70/kg, driven by sales mix and currency; robust LFL pricing
Our average selling price ('ASP') of £70.3/kg was in line with our most
recent guidance and down 10% on the prior year (down 7% in constant currency)
primarily due to the impact of sales mix, weaker Medical Spine and currency
moving adversely during the year. Approximately 80% of the year on year
movement was due to sales mix and currency. Like for like (LFL) pricing was
robust across key end markets outside of VARs and Energy & Industrial,
with more competitive pressure in VARs.
In cases where price has reduced, this has reflected the opportunity to regain
business (for example in Energy & Industrial) or has been in response to
competitive activity, including from less established Asian manufacturers. The
advantages and differentiation of using Victrex products alongside our
technical service and application development capabilities ('delivering
solutions, not just products') remain strong.
Self-help: Go to Market and initial benefits from Project Vista
FY 2025 saw some initial benefits of our 'self-help' and improvement actions
under Project Vista. These included how we Go to Market and serve our
customers, and through digital tools. This supported volume growth and a
record sales pipeline build in FY 2025 of £62m, or a 18% increase, with
Mature Annualised Revenues ('MAR') at £414m (FY 2024: £352m). Mature
Annualised Revenues rely on all sales targets being converted, with typical
conversion rates being lower than the full value of the sales pipeline. We
also benefited from £2m of annualised procurement savings.
Sustainable product revenues
Victrex has strong alignment to megatrends like CO(2) reduction, energy
efficiency and clinical innovation, supporting the commercial use of
VICTREX(TM) PEEK and enabling environmental and societal benefit for our
customers. End market alignment to these megatrends includes Aerospace,
Automotive and Medical, with some applications in Electronics and Energy &
Industrial included in our measure of sustainable product revenues(2). In FY
2025, 53% of our revenues were based on sustainable products (FY 2024
(restated): 56%), with weaker Medical and stronger VARs offsetting the year on
year comparative.
'Magma' key milestone supports commercial roadmap
In our 'Magma' programme, which supports a composite pipe solution for
existing and future oil and gas fields based on VICTREX(TM) PEEK, the
technological contract order - from Petrobras to TechnipFMC - was announced in
May 2025. The final elements of qualification work are being completed during
FY 2026, providing improved visibility on the ramp-up requirements from our
customer, TechnipFMC, and likely timing for revenues to step-up.
Mega-programme revenues impacted by E-mobility and Trauma adoption
Despite a key milestone and increased revenue for our Magma programme, and
technical milestones in Aerospace Composites and Knee, FY 2025 mega-programme
revenues totalled £9.1m, lower than the prior year (FY 2024: £10.2m). Lower
revenues in E-mobility for 800-volt platforms and a slower ramp-up in Trauma,
due to regulatory timing, impacted progress.
As part of our Profit Improvement Plan, we are assessing the shape of our
product portfolio, which may consider prioritising where we invest in our
mega-programmes (mega-programmes are defined as offering peak year revenues
above £50m).
FY 2025 key milestones in our mega-programme portfolio included:
· Aerospace Composites:
- Business wins in Advanced Air Mobility ('AAM') to support short to medium-term
growth, as AAM applications focus on lightweight and durable materials.
· E-mobility:
- Lower revenues but additional platforms to support 800 volt electric vehicles
('EVs')
· Magma:
- Anticipated volumes starting to scale up from FY 2026 onwards, subject to the
final commercial roadmap between TechnipFMC and Petrobras.
· Trauma Plates:
- Regulatory submission for six new plates in China, launching in FY 2026.
· PEEK Knee:
- First patient implants in US clinical trial, with 85 patients implanted
globally, including 20 in the US.
- Regulatory process ongoing in India, with regulatory submission pathways being
prepared for other geographies.
Innovation investment
Research & Development investment totalled 6% of revenues this year, at
£18.8m (FY 2024: 6% or £17.5m). The focus of incremental growth and
innovation investment in the near term remains in our Medical Acceleration
programme. We also saw increasing use of digital tools and digital modelling
to support customers this year, including R&D.
Going further in FY 2026: Profit Improvement Plan
Our Profit Improvement Plan will lead to a more agile and delivery focused
growth business. Full year benefits will be realised in FY 2027, with initial
benefits in H2 2026. We are targeting annualised cost savings of at least
£10m, with a cost to deliver (exceptional items) of approximately £10m
incurred in FY 2026. Our initial focus will be on cost of manufacture and cost
efficiency actions, as well as simplifying our portfolio. We will implement
these actions during FY 2026, led by our incoming Chief Executive, James
Routh.
Divisional performance
Sustainable Solutions - strong volumes, softer sales mix
12 months 12 months
ended ended %
30 Sept 30 Sept % change
2025 2024* change (constant
£m £m (reported) currency)
Revenue 233.9 229.1 2% 5%
Gross profit 88.5 84.9 4% 13%
*Restated to reflect non-implantable medical reclassification from Sustainable
Solutions to Medical segment (see note 4).
Full year revenue in Sustainable Solutions was up 2% at £233.9m (FY 2024
(restated in note 4): £229.1m), driven by VARs (volumes up 21%) and Energy
& Industrial (volumes up 17%), resulting in a softer sales mix. Revenue in
constant currency was up 5%. The initial benefits of Project Vista and our Go
to Market approach supported performance in FY 2025, including regaining
business and using digital solutions to support customers and increase our key
account management capabilities.
The impact of increased price competition was felt primarily within VARs and
Energy & Industrial, despite strong volumes.
Gross margin was slightly higher at 37.8% (FY 2024 (restated): 37.1%) with the
benefit of improved volumes through our UK plants and lower raw material costs
partially offset by annualised costs for our new China facility, sales mix and
currency.
Geographically, North America showed volume growth vs the prior year, driven
by a better performance in Energy & Industrial and VARs. Europe also saw
improvement through VARs, with Asia-Pacific also ahead, supported by
Electronics. Asia-Pacific, and China specifically, remains our fastest growing
region over recent years. North America was up 26% at 769 tonnes (FY 2024: 612
tonnes); Europe was up 8% at 2,224 tonnes (FY 2024: 2,062 tonnes) and
Asia-Pacific was up 11% at 1,171 tonnes (FY 2024: 1,057 tonnes).
End market summary
Electronics
Within Electronics, Global Semiconductor and Consumer Electronics markets
comprise approximately two-thirds of our exposure. Electronics sales volumes
grew 2% at 464 tonnes (FY 2024: 454 tonnes), though we saw some slowdown in
the second half year, in line with market data.
VICTREX(TM) PEEK has a range of applications serving Electronics, which
include CMP rings (for Semiconductor), material used in the chip manufacturing
process and to support smart devices. In smart devices, our APTIV(TM) film
underpins small space acoustic applications, including in speaker diaphragms
and related components. We also continue to see business in home appliances
and related applications. Opportunities driven by 6G mobile applications and
related areas offer good growth prospects.
Energy & Industrial ('E&I')
VICTREX(TM) PEEK has a long-standing track record of durability and
performance in many demanding Oil & Gas applications, where
lightweighting, durability and performance are key. Metal replacement remains
a key trend and with higher activity levels within the industry, sales volume
of 705 tonnes was up 17% on the prior year (FY 2024: 604 tonnes).
General Industrial accounts for over half of the sales volume within this
end-market. Our development of Victrex(TM) PEEK as a PFAS (Per and
Polyfluoroalkyl chemicals) alternative continues to make good progress.
Transport (Automotive & Aerospace)
Our products have supported 'avoided emissions' for over 30 years, through
underpinning CO(2) emission reduction, which is a key megatrend. We replace
metal on light vehicles and on a range of aircraft, with content per plane
currently varying from 100kg to 500kg, dependent on the application.
Transport sales volume was down 1% to 1,012 tonnes (FY 2024: 1,022 tonnes),
with Aerospace down 2% and Automotive down 1%. This performance reflects order
phasing and supply chain challenges with specific customers in Aerospace vs
strong growth in FY 2024, alongside new business in China having a slower ramp
up. We remain optimistic for Aerospace in FY 2026, with new business wins and
an expected ramp-up in China, with Victrex having material specified on
platforms where build rates are increasing, including COMAC's C919 aircraft,
which forecasts build rates increasing over the coming years. During FY 2025,
we also secured a key business win in Advanced Air Mobility ('AAM'), where
lighter materials and strength are key requirements. In Automotive, industry
forecasts (S&P Global) suggest car production in 2025 of approximately 1%
growth versus 2024, or 89.3 million cars built. We saw a slightly improved
performance in Automotive during H2 2025.
Value Added Resellers ('VARs')
Our VARs end market sees VICTREX(TM) PEEK processed into stock shapes or
compounds, for onward sale into multiple supply chains. VARs, who are amongst
our largest customers, are integral to our route to market and innovation
partnerships with major customers, helping us to grow the market for
VICTREX(TM) PEEK. It is our lowest cost to serve area, with limited R&D
and a low-touch business model to support long-term customers. VARs sales
volume was up 21% to 1,797 tonnes (FY 2024: 1,488 tonnes).
Medical - good growth in Non-Spine and Non-Implantable; Spine remains
challenging
12 months 12 months
ended ended %
30 Sept 30 Sept % change
2025 2024* change (constant
£m £m (reported) currency)
Revenue 58.8 61.9 -5% -2%
Gross profit 44.1 49.4 -11% -7%
*Restated to reflect non-implantable medical reclassification from Sustainable
Solutions to Medical segment (see note 4).
In Medical, we saw a mixed picture, with Non-Spine revenues up 7% and Spine
revenues down 28%. Within Non-Spine, Non Implantable revenues (which comprise
less than one-third of Non-Spine, or less than 20% of total Medical revenues)
were up 12%. Overall Medical revenue was down 5% at £58.8m (FY 2024
(restated): £61.9m).
Our Non-Spine business grew strongly across a range of applications with
particular highlights in cranio-maxillofacial ('CMF') surgery, cardio devices
and other medical applications in a broad range of geographies. Destocking
appears to be over in these segments.
In Spine we continued to be impacted by the trends away from PEEK towards
expandable and porous titanium cages, primarily in the US market. In China
there was an impact from volume-based pricing ('VBP') which caused price
reductions and market share shifts amongst medical device companies, including
the withdrawal of some of our Western customers from that market. These
impacts will not necessarily recur annually, although these share shifts have
resulted in a lower price point going forward. Whilst we remain cautious about
the prospects in Spine, PEEK retains advantages over titanium in many respects
and that the first porous spinal cages using PEEK-OPTIMA™ are expected to be
available in the coming year. We therefore expect to see a reduction in the
rate of decline in Spine. With Non-Spine showing good growth, a stabilisation
in US Spine offers the prospects of a return to overall revenue growth in this
division. Visibility remains limited.
We continue to see a healthy growth rate in clinical procedures, which
underpins our mid-term opportunities. Medical is now a much more diverse
business than historically, with increasing penetration in Cardio,
Orthopaedics and Drug Delivery. Revenues in Medical were 26% Spine and 74%
Non-Spine (FY 2024 (restated): 34% Spine and 66% Non-Spine).
Average selling price in Medical reflects a wide divergence of applications,
from Non-Spine (which also includes Non-Implantable, at the lower end of the
pricing spectrum) and Spine. Spine and various Non-Spine applications,
including Cardio applications, are significantly higher than divisional ASP.
Gross profit was £44.1m (FY 2024 (restated): £49.4m) and gross margin was
lower at 75.0% (FY 2024 (restated): 79.8%), which reflects the impact of sales
mix (more Non-Spine vs Spine) and currency. Geographically, revenues in the US
and Europe were 8% and 6% lower respectively, with Asia revenues up 1%.
Diversification within Medical
Beyond our next generation Porous PEEK, which has regulatory approval in the
US, and offers an alternative to titanium 3D printed or porous spinal cages,
we also continue to assess further next generation opportunities within Spine.
New application areas
Cardio (PEEK used in artificial hearts and heart pumps) was a key growth
driver within Non-Spine this year, as well as Active Implantable devices.
PEEK's inert nature and biocompatibility remain key drivers. There is also a
growing opportunity for PEEK in pharmaceutical contact (part of Non-Spine),
where PFAS containing materials are in direct contact with the active
pharmaceutical ingredient. Our sales pipeline remains strong.
Financial review
Gross profit slightly lower on China plant start-up costs and currency
headwind
Gross profit was down 1% at £132.6m (FY 2024: £134.3m), driven by currency,
the softer ASP and the annualised costs from our new China manufacturing
facility (including annualised depreciation costs), alongside wage inflation.
Gross profit was up 5% in constant currency. With production volumes of PEEK
approximately 30% higher in FY 2025 following a period of destocking in FY
2024, we saw a positive impact from higher asset utilisation, alongside the
benefit of lower raw material prices. This represented a total tailwind in FY
2025 of approximately £10.7m. In FY 2026, with some further inventory unwind,
production is likely to be broadly similar to FY 2025. We also have an
opportunity to realise further raw material savings, building on an improved
focus on procurement, with a £2m saving in this area during FY 2025.
Gross margin of 45.3%, reflecting sales mix, currency and China plant costs
Full year Group gross margin of 45.3% was in line with our most recent
guidance, 90 basis points ('bps') lower than last year (FY 2024: 46.2%),
driven by a softer ASP within Sustainable Solutions (more VARs and Energy
& Industrial) and the annualised costs (£4m adverse year on year impact
vs FY 2024 and £8m full year operating loss for FY 2025) from our China
manufacturing facility, alongside currency. Excluding the impact of the China
plant start-up, gross margin was 47.7% (FY 2024: 47.0%).
For FY 2026, with sales mix expected to be similar and production levels
relatively unchanged compared to FY 2025, based on current assumptions, we
anticipate gross margin will be similar. Any upside will be driven by
Continuous Improvement ('CI') programmes and raw material savings. Whilst our
China facility is expected to see increased volumes, it will remain loss
making and cash negative in the current year. Improvement in our China
facility during FY 2026 would support a limited benefit to gross margin
improvement, as the facility continues to build towards break-even volumes.
Victrex has seen the fastest growth coming from China over recent years, with
the new Panjin plant helping to further bolster our existing presence in the
region and support additional medium term growth.
Progress in new China manufacturing facilities
We were able to deliver in line with customer demand by the end of the year,
with approximately 50 tonnes being produced. Our taskforce, involving
manufacturing, engineering and commercial teams, helped us to deliver initial
improvement in manufacturing, with active management of the facility
supporting an expected gradual increase in volumes during FY 2026. This
production facility helps to broaden our portfolio of PEEK grades, with a new
'Elementary' type 2 PEEK polymer grade tailored to the local market.
Separately from our new manufacturing facility, in our existing and long
standing commercial business within China, overall demand, within our target
end markets, remains positive and it continues to be our fastest growing
region.
Gains & losses on foreign currency net hedging
Fair value gains and losses on foreign currency contracts in FY 2025 were a
gain of £3.7m (FY 2024: gain of £5.2m), arising from contracts where the
deal rate obtained in advance was favourable to the average exchange rate
prevailing at the date of the related hedged transactions. We continue to
hedge the net currency exposure, which reflects the diversity of our customer
and cost base across regions.
Our hedging policy is kept under review, for the duration of hedging, level of
cover and currencies covered. It requires that at least 80% of our US Dollar
and Euro forecast cash flow exposure is hedged for the first six months, then
at least 75% for the second six months of any rolling twelve-month period. As
at the date of this report, our level of cover for FY 2026 was approximately
80%.
Further adverse impact from currency in FY 2026
Based on spot rates and currency contracts in place at the date of this
report, currency represents a £2m-£3m headwind to underlying PBT in FY 2026,
which will be weighted to the first half. This reflects the strengthening of
Sterling, particularly against the US Dollar and some Asian currencies.
Underlying operating overheads(1) slightly ahead excluding wage inflation
& partial employee reward
Total underlying operating overheads(1), which exclude exceptional items of
£8.6m, increased by 14% to £84.2m (FY 2024: £74.0m). The majority of this
increase related to employee related expenditure, primarily £3.7m of non-cash
share incentives to support retention. The remainder included wage inflation,
the UK government imposed employer national insurance ('NI') increase, and
partial bonus awards to employees following three years of low to no payout
under existing employee reward schemes. Partial bonus payments reflected
metrics achieved on operating cash conversion and some strategic objectives,
with no awards made under the main profit-based metric (profit is 60%
weighting for the all employee annual bonus).
The increase in share-based charges reflects firstly, the absence of charges
in the prior year, due to the reversal of accruals from prior years for share
plans failing to vest (for all employees, including Executive Directors).
Secondly, the share incentive structure for employees has changed, as
previously communicated, thereby supporting retention. Share incentive schemes
for Executive Directors are unchanged.
For Executive Directors and Victrex Management Team ('VMT') members, the
Remuneration Committee used its discretion to conclude that partial bonuses
for FY 2025 should be further reduced, noting the shareholder experience
during the year.
Underlying operating overheads, when excluding the effects of wage inflation,
the employer NI increase, Executive recruitment fees and partial employee
reward, were up 2%. Tight cost control prevails, including on recruitment,
travel and reductions in discretionary spend. Innovation spend was primarily
supporting our Medical Acceleration programme.
In line with our Profit Improvement Plan, additional actions to improve
efficiencies and reduce our cost base and cost to serve will be the focus for
the year ahead.
Net interest expense
Net interest expense increased to £2.0m in FY 2025 (FY 2024: net interest
expense of £1.2m) and we expect a similar level through FY 2026. The increase
is driven by the annualised impact of our China loan used to fund the
investment in manufacturing assets which started to be expensed (rather than
capitalised) from H2 2024.
Underlying PBT
Underlying PBT of £46.4m was down 21% (FY 2024: £59.1m). In constant
currency, underlying PBT was down 10%.
Despite strong volumes, a significantly adverse sales mix (across both
divisions) and some price pressure in VARs resulted in a weaker drop through
to PBT. Whilst the Group saw improved asset utilisation across our asset base,
costs from our new China facility recorded an £8m loss. The currency headwind
was £8.0m.
Lower exceptional items
FY 2025 saw the final costs of implementing our ERP system, and associated
business improvements, including the Project Vista programme. Our ERP system -
Microsoft D365 - is helping to drive a stronger customer facing platform,
including digital tools for sales and our Research & Development
('R&D') teams. We have also recognised a £4.0m loss from our equity
investment in Surface Generation, which included the non-cash reduction in the
fair value of our investment to £nil and the write off of associated
receivables.
Taking into account one-off costs associated with our new Profit Improvement
Plan, we anticipate exceptional items will be approximately £10m for FY 2026.
Reported PBT up 44%
Reported PBT increased by 44% to £33.8m (FY 2024: £23.4m) as we saw a much
lower value of exceptional items compared to the prior year. FY 2025 reflected
exceptional items of £12.6m in total (FY 2024: £35.7m), mainly comprising
ERP system costs, with our Microsoft D365 system being successfully
implemented, and associated costs from Project Vista.
Earnings per share up 62%
Basic earnings per share ('EPS') of 32.0p was up 62% on the prior year (FY
2024: 19.8p), reflecting the improvement in reported PBT, including the effect
of exceptional items being lower. Underlying EPS was down 15% at 43.9p (FY
2024: 51.7p).
Taxation
In FY 2025 the effective tax rate was 26.3% (FY 2024: 32.5%) and tax paid was
£4.4m (FY 2024: £4.3m). The year on year reduction was driven by a higher
proportion of current year exceptional items being tax deductible. The
underlying effective rate was 23.9% (FY 2024: 22.2%) with the increase
attributed to the higher losses in China where no deferred tax asset is
recognised.
Our mid-term guidance for the effective tax rate is marginally higher than
previously communicated at 15% -19% (previously 14% - 18%), due to an increase
in the forecast proportion of profits arising outside the UK, therefore not
benefiting from the UK Patent Box regime. In FY 2026 the effective rate is
likely to again exceed the top end of the range, with no asset recognised for
carried forward losses in China and the proportion of UK profits available for
Patent Box being the key drivers.
Balance sheet
Retaining a strong balance sheet to support our global customers - and
reflecting the nature of our long-term programmes - remains key. Net assets at
30 September 2025 totalled £431.2m (FY 2024: £461.6m).
ROIC(1)
Return on invested capital ('ROIC') is one of our strategic KPIs. Our ROIC in
FY 2025 was 9% (FY 2024: 10%). This declined due to the reduction in
underlying profits which was partially mitigated by a reduction in average
invested capital driven by asset impairments in both the current and prior
year.
Inventory unwind
Following our UK Asset Improvement programme in FY 2023, we commenced
inventory unwind during FY 2024. In FY 2025, we saw further progress,
resulting in closing inventory reaching £109.7m (FY 2024: £115.1m). Our goal
of approximately £100m is higher than historical levels, but reflects the
broader business, asset and geographic portfolio. This includes an increased
range of polymer grades and product forms to support a wider customer base.
For FY 2026, we expect to see some additional progress on inventory unwind,
with broadly similar production levels from UK assets.
Lower capital expenditure
Our asset portfolio is well invested and underpins our core business and
future growth programmes. Cash capital expenditure reduced to £21.8m (FY
2024: £32.6m), below the lower end of our 8-10% of Group revenues guidance.
Our largest investment in the year was in an essential safety and regulatory
project at our monomer plant in Rotherham, UK.
Mid-term capital expenditure guidance is unchanged (8-10% of revenues) but is
likely to remain below these levels in the short term, with production
capacity already in place to support our five-year strategic plan. Following a
review of options to phase investment in support of decarbonisation, any major
step-up in related capital expenditure would be phased in FY 2028 and beyond,
whilst noting our interim science-based targets (SBTI) in 2032. This will only
commence subject to available technology and visibility towards a decarbonised
grid in the UK, as well as affordability.
Strong operating cash conversion(1) of 121%
Cash generated from operations was down 14% at £75.9m (FY 2024: £88.7m)
reflecting the lower operating profit and the significant benefit of inventory
unwind in the prior year. Underlying operating cash conversion(1) improved to
121% (FY 2024: 114%) driven by lower capital expenditure.
In June 2025 we paid the 2025 interim dividend of 13.42p/share at a value of
£11.7m. Net debt at 30 September 2025 was £24.8m (FY 2024: £21.1m),
including cash of £24.2m (FY 2024: £29.3m).
The Group has continued to utilise the UK revolving credit facility ('RCF') to
support payment of the final dividend in FY 2025 and FY 2024 before being
fully repaid by 30 September in each year. Borrowings, including lease
liabilities, at 30 September 2025 were £49.0m (FY 2024: £50.4m).
Updated capital allocation policy
Alongside our Profit Improvement Plan and incremental actions to drive
performance improvement, we are maintaining the strength of our balance sheet,
which is a key consideration for customers and investors. Reflecting all
stakeholder interests, we will target maintaining net debt/EBITDA(1) in a
range of 0.5x-1.0x.
Dividends will be maintained vs FY 2024, with the Group securing additional
term debt to reduce reliance on the RCF. The FY 2025 proposed final dividend
is 46.14p (FY 2024: 46.14p). We will maintain dividends at these levels
provided the net debt/EBITDA(1) target range of 0.5x-1.0x is not exceeded.
This ensures that the balance sheet strength, for which Victrex is well known,
is maintained. Additional returns of cash, via share buybacks, or special
dividends, will be considered when net debt levels fall sustainably below the
low end of this range.
Recognition in a challenging environment
In a challenging environment, our culture of innovation remains strong. With
the Chemical industry seeing continuing challenges during FY 2025, we were
pleased to be recognised as Company of the Year by the Chemical Industries
Association.
Jakob Sigurdsson
Chief Executive
2 December 2025
1 Alternative performance measures are defined in note 13.
2 Sustainable revenues as a % of total revenues is another internal metric
calculated as the % of revenue earned from sustainable products, which are
defined as those which offer a quantifiable environmental or societal benefit.
These are primarily in Automotive and Aerospace (supporting CO(2) reduction)
but also in Energy and Industrial and Electronics (e.g. wind energy
applications, or those which support energy efficiency) and Medical (both
implantable and non-implantable), supporting better patient outcomes.
Consolidated Income Statement
Year ended Year ended
30 September 2025 30 September
2024
Note £m £m
Revenue 4 292.7 291.0
Gains on foreign currency net hedging 4 3.7 5.2
Cost of sales 4 (163.8) (161.9)
Gross profit 4 132.6 134.3
Sales, marketing and administrative expenses (74.0) (71.0)
Research and development expenses (18.8) (17.5)
Operating profit before exceptional items 48.4 60.3
Exceptional items 5 (8.6) (14.5)
Operating profit 39.8 45.8
Financial income 0.4 0.7
Finance costs (2.4) (1.9)
Losses on equity investment (4.0) -
Result of associate 8 - (21.2)
Profit before tax and exceptional items 46.4 59.1
Exceptional items 5 (12.6) (35.7)
Profit before tax 33.8 23.4
Income tax expense 6 (8.9) (7.6)
Profit for the financial year 24.9 15.8
Profit/(loss) for the year attributable to:
Owners of the Company 27.8 17.2
Non-controlling interests (2.9) (1.4)
Earnings per share
Basic 7 32.0p 19.8p
Diluted 7 31.8p 19.7p
Dividends (pence per share)
Interim 13.42 13.42
Final 46.14 46.14
59.56 59.56
A final dividend in respect of FY 2025 of 46.14p per ordinary share (£40.2m)
has been recommended by the Directors for approval at the Annual General
Meeting on 6 February 2026.
Consolidated Statement of Comprehensive Income
Year ended Year ended
30 September 30 September
2025 2024
£m £m
Profit for the financial year 24.9 15.8
Items that will not be reclassified to profit or loss
Defined benefit pension schemes' actuarial (losses)/gains (1.8) 0.3
Income tax on items that will not be reclassified to profit or loss 0.4 (0.1)
(1.4) 0.2
Items that may be subsequently reclassified to profit or loss
Currency translation differences for foreign operations (1.6) (6.7)
Effective portion of changes in fair value of cash flow hedges (0.9) 9.6
Net change in fair value of cash flow hedges
transferred to profit or loss (3.7) (5.2)
Income tax on items that may be reclassified to profit or loss 1.2 (1.1)
(5.0) (3.4)
Total other comprehensive expense for the year (6.4) (3.2)
Total comprehensive income for the year 18.5 12.6
Total comprehensive income/(expense) for the year attributable to:
Owners of the Company 21.4 14.0
Non-controlling interests (2.9) (1.4)
Consolidated Balance Sheet
As at As at
30 September 30 September
2025 2024
Note £m £m
Assets
Non-current assets
Property, plant and equipment 348.7 352.1
Intangible assets 16.4 17.1
Financial assets held at fair value through profit and loss - 3.5
Financial assets held at amortised cost 1.0 1.0
Deferred tax assets 6.1 6.2
Retirement benefit asset 9.3 10.7
381.5 390.6
Current assets
Inventories 109.7 115.1
Current income tax assets 2.7 3.9
Trade and other receivables 46.5 45.8
Derivative financial instruments 9 2.3 7.3
Cash and cash equivalents 24.2 29.3
185.4 201.4
Total assets 566.9 592.0
Liabilities
Non-current liabilities
Deferred tax liabilities (42.1) (40.8)
Long term lease liabilities (7.0) (8.3)
Borrowings 8 (22.6) (32.9)
Retirement benefit obligations (2.4) (2.5)
(74.1) (84.5)
Current liabilities
Derivative financial instruments 9 (1.6) (0.3)
Borrowings 8 (17.5) (7.5)
Current income tax liabilities (0.6) (2.2)
Trade and other payables (40.0) (34.2)
Current lease liabilities (1.9) (1.7)
(61.6) (45.9)
Total liabilities (135.7) (130.4)
Net assets 431.2 461.6
Equity
Share capital 0.9 0.9
Share premium 62.2 62.1
Translation reserve (5.5) (3.9)
Hedging reserve 0.5 3.9
Retained earnings 375.4 398.0
Equity attributable to owners of the Company 433.5 461.0
Non-controlling interest 10 (2.3) 0.6
Total equity 431.2 461.6
Consolidated Cash Flow Statement
Year ended Year ended
30 September 30 September
2025 2024
Note £m £m
Cash flows from operating activities
Cash generated from operations 12 75.9 88.7
Interest received 0.4 0.7
Interest paid (0.8) (1.1)
Net income tax paid (4.4) (4.3)
Net cash flow generated from operating activities 71.1 84.0
Cash flows (used in)/generated from investing activities
Acquisition of property, plant and equipment and intangible assets (21.8) (32.6)
Withdrawal of cash invested for greater than three months - 0.1
Other loans granted - (0.7)
Loans to associated undertakings - (2.2)
Net cash flow used in investing activities (21.8) (35.4)
Cash flows generated from/(used in) financing activities
Proceeds from issue of ordinary shares exercised under option 0.1 0.2
Repayment of lease liabilities (2.2) (1.9)
Bank borrowings received 25.5 33.8
Bank borrowings repaid (25.3) (31.1)
Interest paid on capital-related bank borrowings (0.9) (1.1)
Dividends paid (51.8) (51.8)
Net cash flow used in financing activities (54.6) (51.9)
Net decrease in cash and cash equivalents (5.3) (3.3)
Effect of exchange rate fluctuations on cash held 0.2 (0.8)
Cash and cash equivalents at beginning of year 29.3 33.4
Cash and cash equivalents at end of year 24.2 29.3
Consolidated Statement of Changes in Equity
Share capital Share premium Translation reserve Hedging reserve Retained earnings Total attributable to owners of the Company Non-controlling interest
Total
£m £m £m £m £m £m £m £m
Equity at 1 October 2024 0.9 62.1 (3.9) 3.9 398.0 461.0 0.6 461.6
Total comprehensive income/(expense) for the year
Profit for the year attributable to owners of the Company - - - - 27.8 27.8 - 27.8
Loss for the year attributable to non-controlling interest - - - - - - (2.9) (2.9)
Other comprehensive (expense)/income
Currency translation differences for foreign operations - - (1.6) - - (1.6) - (1.6)
Effective portion of changes in fair value of cash flow hedges - - - (0.9) - (0.9) - (0.9)
Net change in fair value of cash flow hedges transferred to profit or loss - - - (3.7) - (3.7) - (3.7)
Defined benefit pension schemes' actuarial gains - - - - (1.8) (1.8) - (1.8)
Tax on other comprehensive income - - - 1.2 0.4 1.6 - 1.6
Total other comprehensive (expense)/ income for the year - - (1.6) (3.4) (1.4) (6.4) - (6.4)
Total comprehensive (expense)/income for the year - - (1.6) (3.4) 26.4 21.4 (2.9) 18.5
Contributions by and distributions to owners of the Company
Share options exercised - 0.1 - - - 0.1 - 0.1
Equity-settled share-based payment transactions - - - - 3.5 3.5 - 3.5
Tax on equity-settled share-based payment transactions - - - - (0.7) (0.7) - (0.7)
Dividends to shareholders - - - - (51.8) (51.8) - (51.8)
Equity at 30 September 2025 0.9 62.2 (5.5) 0.5 375.4 433.5 (2.3) 431.2
Share capital Share premium Translation reserve Hedging reserve Retained earnings Total attributable to owners of the Company Non-controlling interest
Total
£m £m £m £m £m £m £m £m
Equity at 1 October 2023 0.9 61.9 2.8 0.6 432.8 499.0 2.0 501.0
Total comprehensive income/(expense) for the year
Profit for the year attributable to owners of the Company - - - - 17.2 17.2 - 17.2
Loss for the year attributable to non-controlling interest - - - - - - (1.4) (1.4)
Other comprehensive (expense)/income
Currency translation differences for foreign operations - - (6.7) - - (6.7) - (6.7)
Effective portion of changes in fair value of cash flow hedges - - - 9.6 - 9.6 - 9.6
Net change in fair value of cash flow hedges transferred to profit or loss - - - (5.2) - (5.2) - (5.2)
Defined benefit pension schemes' actuarial gains - - - - 0.3 0.3 - 0.3
Tax on other comprehensive income - - - (1.1) (0.1) (1.2) - (1.2)
Total other comprehensive (expense)/ income for the year - - (6.7) 3.3 0.2 (3.2) - (3.2)
Total comprehensive (expense)/income for the year - - (6.7) 3.3 17.4 14.0 (1.4) 12.6
Contributions by and distributions to owners of the Company
Share options exercised - 0.2 - - - 0.2 - 0.2
Equity-settled share-based payment transactions - - - - 0.2 0.2 - 0.2
Tax on equity-settled share-based payment transactions - - - - (0.6) (0.6) - (0.6)
Dividends to shareholders - - - - (51.8) (51.8) - (51.8)
Equity at 30 September 2024 0.9 62.1 (3.9) 3.9 398.0 461.0 0.6 461.6
Notes to the Financial Report
1. Reporting entity
Victrex plc (the 'Company') is a public company which is limited by shares and
is listed on the London Stock Exchange. This Company is incorporated and
domiciled in the United Kingdom. The address of its registered office is
Victrex Technology Centre, Hillhouse International, Thornton Cleveleys,
Lancashire FY5 4QD, United Kingdom.
The consolidated financial statements of the Company for the year ended 30
September 2025 comprise the Company and its subsidiaries (together referred to
as the 'Group'). The consolidated financial statements were approved for issue
by the Board of Directors on 2 December 2025.
2. Basis of preparation
Both the consolidated and Company financial statements have been prepared in
accordance with international accounting standards in conformity with the
requirements of the Companies Act 2006 and in accordance with UK-adopted
International Accounting Standards. The financial statements have been
prepared under the historical cost basis except for derivative financial
instruments, defined benefit pension scheme assets and financial assets held
at fair value through profit and loss, which are measured at their fair value.
The Group's business activities, together with factors likely to affect its
future development, performance and position, are set out in the FY 2025
Annual Report. In addition, note 17 (financial risk management) in the
financial statements of the FY 2025 Annual Report details the Group's exposure
to a variety of financial risks, including currency and credit risk.
The financial information set out in this document does not constitute the
Group's statutory financial statements for the years ended 30 September 2025
or 2024 but is derived from those financial statements. Statutory financial
statements for the year ended 30 September 2025 and 30 September 2024 have
been reported on by the auditors who issued an unqualified opinion and did not
draw attention to any matters by way of emphasis without qualifying their
report and did not contain statements under s498(2) or s498(3) of the
Companies Act 2006 in respect of both years in the auditors' reports for FY
2025 and FY 2024. Statutory accounts for the year ended 30 September 2024 have
been filed with the Registrar of Companies. The statutory accounts for the
year ended 30 September 2025 will be delivered to the Registrar of Companies
within the Companies House accounts filing guidance. A separate announcement
will be made when the FY 2025 Annual Report is made available on the Company's
website in December 2025.
Climate change
In preparing the financial statements of the Group an assessment of the impact
of climate change has been made in line with the requirements of the Task
Force on Climate-Related Financial Disclosures ('TCFD') and with specific
consideration of the disclosures made in the Sustainability report starting on
page 38 of the FY 2025 Annual Report.
The Directors recognise the inherent uncertainty in predicting the impact of
climate change and the actions which regulators and governments, both domestic
and overseas, will take in order to achieve their various targets. However,
from the work undertaken to date, outlined in the Sustainability report, the
Directors have reached the overall conclusion that there has been no material
impact on the financial statements for the current year from the potential
impact of climate change.
The Group's analysis on the impact of climate change continues to evolve as
more clarity on timings and targets emerges, with Victrex committed to
reducing its carbon impact towards Net Zero across all scopes by 2050, in line
with SBTi targets.
Use of Judgements and estimation uncertainty
The Directors consider that the application of the exceptional items
accounting policy involves significant judgement, with the application and
areas of judgement outlined in note 5. In addition, the accounting policy for
property, plant and equipment requires the recoverable amount of the assets to
be assessed when there is an indication that the carrying amount of the assets
may not be recoverable. The Directors undertake a review for indicators of
potential impairment at each reporting date. This assessment is considered a
critical judgement, particularly where the assets are new and therefore
currently operating well below capacity and expected to generate a loss which
requires ongoing funding. Further information is provided in note 10 of the FY
2025 Annual Report.
There are no other judgements that the Directors have made in the process of
applying accounting policies that would have a significant effect on the
amounts recognised in the financial statements, apart from those involving
estimation uncertainty as detailed below.
The Group uses estimates and assumptions in applying accounting policies to
value balances and transactions recorded in the financial statements. The
estimates and assumptions that, if revised, would have a significant risk of a
material impact on the valuation of assets and liabilities within the next
financial year, and therefore classified as critical at 30 September 2025, are
retirement benefits and the valuation of inventory, consistent with the prior
year.
Going Concern
The Directors have performed a robust going concern assessment including a
detailed review of the business' rolling forecast and consideration of the
principal risks faced by the Group and the Company, as detailed on pages 28 to
34 of the FY 2025 Annual Report. This assessment has paid particular attention
to current trading results and both the impact of the ongoing global economic
and sector specific challenges on the aforementioned forecasts.
Both the Group and the Company maintains a strong balance sheet providing
assurance to key stakeholders, including customers, suppliers and employees.
The Group had net debt of £24.8m at 30 September 2025, a reduction of £15.9m
from 31 March 2025, and an increase of £3.7m from 30 September 2024. The
increase in net debt during the year largely relates to the payment of
dividends in February 2025, £40.1m, and June 2025, £11.7m. Underlying
operating cash conversion improved to 121% for the year ended September 2025
from 114% for the year ended September 2024, supported by lower capital
expenditure and the ongoing reduction in the inventory position. The Group
drew on its UK revolving credit facility during the period to pay the final
dividend, with a maximum drawn down of £18m (£26m maximum drawn down in the
year ended 30 September 2024), before fully repaying the facility by the end
of the year from operating cash flows. Of the gross debt position of £49.0m,
£19.4m is due within one year. The Group maintains a cash balance sufficient
to manage short-term liquidity and provide headroom against ongoing trading
volatility. The cash balance at 30 September 2025 was £24.2m. Approximately
50% is held in the UK, on instant access, where the Group incurs the majority
of its expenditure. At the date of this report, the Group has drawn c.£32m of
its Chinese banking facility in its Chinese subsidiaries (with a total
facility of c.£40m available until June 2029, subject to continuing to meet
draw down criteria which will be reassessed in November 2026 as detailed
below) and has unutilised UK banking facilities of £60m through to October
2028 of which £40m is committed and immediately available and a further £20m
is available subject to lender approval.
The rolling forecast is derived from the Group's Integrated Business Planning
('IBP') process which runs monthly. Each area of the business provides
forecasts which consider a number of external data sources, triangulating with
customer conversations, trends in market and country indices as well as
forward-looking industry forecasts: for example, forecast aircraft build rates
from the two major manufacturers for Aerospace; rig count and purchasing
manager indices for E&I; World Semiconductor Trade Statistics
semiconductor market forecasts for Electronics; and Needham and IQVIA
forecasts for medical procedures.
The assessment of going concern included conducting scenario analysis on the
aforementioned forecast. Whilst Sustainable Solutions has seen a continued
recovery in sales volumes during FY 2025, although revenue growth was lower
due to sales mix, Medical continues to experience lower demand, primarily in
Spine which is offsetting strong progress in other application areas, with
Medical sales reducing for the second year in a row since the record FY 2023.
With economic forecasts remaining mixed, particularly for the chemical sector,
and supply chains continuing to be cautious in both segments, the scenario
analysis performed by management focuses on the Group's ability to sustain a
further period of suppressed demand in Medical and a return to lower volumes
in Sustainable Solutions. In assessing the severity of the scenario analysis
the scale and longevity of the impact experienced during previous economic
downturns have been considered, including the differing impacts on the
Sustainable Solutions and Medical segments.
Using the IBP data and the reference points from previous economic cycles,
management has created two scenarios to model the impact of a reversal of the
recovery seen in Sustainable Solutions since January 2024 and the continuing
effect of softer demand within Medical at a regional/market level and
aggregated levels on the Group's profits and cash generation through to
January 2027 with consideration also given to the six months beyond this. The
impact of climate change is not considered to have a significant impact over
the going concern period and, as a result, the scenario testing noted below
does not incorporate any additional sensitivity specific to climate change.
The Directors have modelled the following scenarios:
Scenario 1 - Sustainable Solutions demand reduces back to the levels seen
before the recovery in volumes for a period of six months from January 2026,
before recovering to the levels seen in the past 12 months for the remainder
of the going concern period. Medical revenue remains in line with the softer
level experienced during FY 2025 through to June 2026 before recovery
commences at a rate of 10% per annum through the remainder of the going
concern period. Inventory is reduced in line with sales.
Scenario 2 - In line with scenario 1 through to June 2026 but with the lower
demand continuing throughout 2026, i.e. throughout the going concern period.
This would give an annualised volume below c.3,500 tonnes, a level not seen
since 2013 with the exception of the COVID impacted FY 2020. In this scenario
softer demand would continue to impact Medical revenue which would remain at
an annualised revenue comparable to FY 2025 of c.£58m throughout the going
concern period, a level, prior to FY 2025, not seen in the past 10 years.
Inventory is reduced in line with sales. The Directors consider scenario 2 to
be a severe but plausible scenario.
Following operational challenges sales from the new PEEK manufacturing
facility in China have remained at a modest level during FY 2025; however,
with the challenges now largely resolved and the Commercial team in place to
more aggressively pursue the opportunities, volume growth is forecast to
accelerate. Whilst this happens there is a period where additional funding is
required to see it through to net cash generation. In concluding on the going
concern position, it has been assumed that the Group will provide the
additional funds in full, which the Board considers to be the worst case
scenario. The locally provided external funding is due for repayment in
December 2026. The Group has agreed to refinance this facility through to
June 2029 with the drawdown of a new facility in November 2026 to repay the
existing facility. This facility is not committed until it is drawn down and
therefore the going concern assessment assumes that the £24.6m is repaid by
December 2026, which would require a partial drawdown of the UK revolving
credit facility in each of the scenarios.
Before any mitigating actions the sensitised cash flows show the Group has
significantly reduced cash headroom, which would require continued use of the
committed UK banking facility during the going concern period. The level of
facility drawn down is forecast to be similar with the past two financial
years. The level of facility drawn down is higher in scenario 2 but in neither
scenario is the committed facility fully drawn, nor drawn for the whole year.
With cash levels lower than has historically been the case for Victrex,
particularly if the aforementioned new China bank facility is not drawn down
and therefore the existing facility requires repayment using the UK revolving
credit facility, or other as yet unsecured new facilities, in December 2026,
the Group and the Company have identified a number of mitigating actions
which are readily available to increase the headroom.
These include:
· Use of committed facility - the undrawn committed facility could be drawn at
short notice. Conversations with our banking partners indicate that the £20m
uncommitted accordion could also be readily accessed. The covenants of the
facility have been successfully tested under each of the scenarios;
· Securing additional debt facilities - the company could seek to obtain
additional debt from existing banking partners or other potential lenders;
· Deferral of capital expenditure - the base case capital investment over the
next 12 months is lower than recent years with major projects now completed.
This could be reduced further by limiting expenditure to essential projects
and deferring all other projects later into 2026 or beyond;
· Reduction in discretionary overheads - costs would be limited to prioritise
and support customer-related activity;
· Further reduction in inventory levels - the elevated inventory level seen at
the end of FY 2023 has been partially unwound across FY 2024 and FY 2025 with
a further reduction targeted in FY 2026. The scenarios noted above include an
acceleration of the inventory unwind but a more aggressive approach could be
taken to provide additional cash resources; and
· Reduction/deferral/cancellation of dividends - the Board considers the cash
position and interests of all stakeholders before recommending payment of a
dividend. A dividend has been proposed for payment in February 2026 of
c.£40m and in the past an interim dividend of c.£12m has been paid in
June/July, giving a combined annual outflow of c.£52m.
Reverse stress testing was performed to identify the level that sales would
need to drop by in order for the Group or Company to be unable to meet its
liabilities as they fall due before the end of the going concern assessment
period. Sales volumes would need to consistently drop materially below the low
point in scenario 2 which is not considered plausible.
As a result of this detailed assessment and with reference to the Group and
Company's strong balance sheet, existing committed facilities and the cash
preserving levers at the Group and Company's disposal, but also acknowledging
the current economic uncertainty created by the increase in global tariffs,
particularly in the US, the depressed chemical sector and the war in Ukraine
continuing, the Board has concluded that both the Group and Company have
sufficient liquidity to meet their obligations when they fall due for a period
of at least 12 months after the date of this report. For this reason, they
continue to adopt the going concern basis for preparing the financial
statements.
3. Significant accounting policies
The accounting policies applied by the Group in these financial statements are
the same as those applied in the 2024 Annual Report except for the application
of relevant new standards. None of the new standards have had a material
impact on the Group's consolidated result or financial position.
4. Segment reporting
The Group's business is strategically organised as two business units
(operating segments): Sustainable Solutions, which focuses on our Energy &
Industrial, VARs, Transport and Electronics markets, and Medical, which
focuses on implantable and non-implantable medical markets.
(Restated)
Year ended 30 September 2025 Year ended 30 September 2024
Sustainable Solutions Medical Group Sustainable Solutions Medical Group
£m £m £m £m £m £m
Segment revenue 239.5 58.8 298.3 235.2 61.9 297.1
Internal revenue (5.6) - (5.6) (6.1) - (6.1)
Revenue from external sales 233.9 58.8 292.7 229.1 61.9 291.0
Gains/(losses) on foreign currency net hedging 3.0 0.7 3.7 4.2 1.0 5.2
Cost of sales (148.4) (15.4) (163.8) (148.4) (13.5) (161.9)
Segment gross profit 88.5 44.1 132.6 84.9 49.4 134.3
Restatement of segment reporting
At the start of FY 2025 the group's management structure changed with a
consolidation of our two Medical businesses under the leadership of the
Managing Director for Medical. The non-implantable Medical business, which
in FY 2024 represented 3% of Group revenue, has historically been managed by
the Managing Director for Sustainable Solutions and Board reporting has
consolidated this business with the other Sustainable Solutions businesses.
However, with more strategic opportunities arising in this market, including
more focus on pharmaceutical applications, across an increasingly similar
value proposition to the implantable business, the Board concluded that the
two Medical businesses would benefit from being under the same Managing
Director. The way in which results are reported to the Board has been
realigned with Medical now comprising both the implantable and non-implantable
businesses. Accordingly, the segmental disclosures have been updated to
reflect the revised structure with the comparatives for FY 2024 restated on a
consistent basis.
There is no change to the Group level results as a consequence of this change.
A table setting the previous and new segmental reporting for FY 2024
comparatives is set out below.
Previous segment results Restated segmental results
Year ended 30 September 2024 Year ended 30 September 2024
Sustainable Solutions Medical Group Sustainable Solutions Medical Group
£m £m £m £m £m £m
Segment revenue 240.6 53.0 293.6 235.2 61.9 297.1
Internal revenue (2.6) - (2.6) (6.1) - (6.1)
Revenue from external sales 238.0 53.0 291.0 229.1 61.9 291.0
Gains on foreign currency net hedging 4.2 1.0 5.2 4.2 1.0 5.2
Cost of sales (151.9) (10.0) (161.9) (148.4) (13.5) (161.9)
Segment gross profit 90.3 44.0 134.3 84.9 49.4 134.3
5. Exceptional items
Items that are, in aggregate, material in size and/or unusual or infrequent in
nature, are disclosed separately as exceptional items in the Consolidated
Income Statement.
The separate reporting of exceptional items, which are presented as
exceptional within the relevant category in the Consolidated Income Statement,
helps provide an indication of the underlying performance of the Group.
Year ended Year ended
30 September 30 September
2025 2024
£m £m
Included within sales, marketing and administrative expenses:
Business process improvements including ERP system 8.6 9.9
Impairment of property, plant and equipment relating to gears manufacturing - 4.6
8.6 14.5
Included within losses on equity investment:
Fair value loss on equity investment in Surface Generation Limited 3.5 -
Write off of associated receivables owed from Surface Generation Limited 0.5 -
4.0 -
Included within result of associate:
Impairment of investment in associate - 9.1
Fair value loss on loans due from Bond - 11.9
Legal fees in relation to Bond - 0.2
- 21.2
Exceptional items before tax 12.6 35.7
Tax on exceptional items (2.2) (8.0)
Exceptional items after tax 10.4 27.7
Business process improvements including ERP system implementation
During FY 2022 the Group commenced a multi-year improvement project centred
around the implementation of a new cloud-based ERP system. The project, which
includes process redesign, customisation and configuration of the new ERP
system, change management and training, will deliver benefits to both customer
interactions and internal business processes including those covering
procurement, back-office processing and organisational efficiency.
The project costs relating directly to the new ERP system implementation do
not meet the criteria for capitalisation (as the majority of costs relating to
past systems have), in line with the IFRS Interpretations Committee's decision
clarifying how arrangements in respect of cloud-based Software as a Service
('SaaS') systems should be accounted for. Accordingly, the cost is expensed
rather than capitalised and amortised. Given the size of the overall
improvement project and its impact on the reported profit-based metrics, the
fact the system is evergreen and thus this level and nature of cost will not
happen again, it meets the Group's criteria to be presented as exceptional.
The improvement project and ERP implementation has been completed in 2025.
Fair value loss on equity investment in Surface Generation Limited ('Surface
Generation') and write off of associated receivables
Following an assessment of the fair value, the carrying value of Group's
equity investment in Surface Generation, £3.5m, and associated receivables,
has been reduced to £nil at 30 September 2025. The minority investment in
Surface Generation was acquired in 2019 to gain access to an innovative and
differentiated tooling and design and processing technology called Production
to Functional Specification. The company has exhausted cash invested by
Victrex and without further funding would not be able to continue as a going
concern. Surface Generation has been unable to find a suitable external
investor to provide the funding or acquire the business and therefore limited
funding has been advanced by current shareholders with the aim of providing 12
months runway to complete development of pivotal technology and mature key
customer relationships. The terms of the funding are such that they heavily
dilute existing shareholders, including Victrex. Accordingly, the fair value
of the current investment is significantly reduced and with a high level of
uncertainty over the future value of the business the directors have reduced
the fair value to nil. The Group has also advanced short-term loans to the
Surface Generation, held within other receivables, that have also been written
off, which along with costs incurred increases the total exceptional charge to
£4.0m. Given the size of the impairment, its impact on the reported
profit-based metrics and the infrequent nature of such charges (it is the only
investment currently in the financial asset held at fair value through profit
and loss), it meets the Group's criteria to be presented as exceptional.
£3.95m of the £4.0m, is capital in nature for tax purposes and therefore not
deductible for tax.
FY 2024 exceptional items
Full details of the non-recurring exceptional items recognised in the year
ended 30 September 2024 comprising the impairment of property, plant and
equipment relating to gears manufacturing of £4.6m, and impairment of
investment in associate, fair value loss on loans (including both convertible
loan notes and 2024 bridging loan) and legal fees totalling £21.2m are
detailed in the 2025 Annual Report in Note 4.
The cash flow in the year associated with exceptional items was a £9.0m
outflow (FY 2024: £11.7m outflow).
6. Income tax expense
Year ended Year ended
30 September 30 September
2025 2024
£m £m
UK corporation tax 6.0 (0.7)
Overseas tax 1.8 2.7
Deferred tax 1.1 5.3
Tax adjustments relating to prior years - 0.3
Total tax expense in income statement 8.9 7.6
Effective tax rate 26.3% 32.5%
Deferred tax assets/liabilities have been recognised at the rate they are
expected to reverse. For UK assets/liabilities this is 25% for the majority of
assets and liabilities (30 September 2024: 25%), being the UK tax rate
effective from 1 April 2023. For overseas assets/liabilities the corresponding
overseas tax rate has been applied.
7. Earnings per share
Year ended Year ended
30 September 30 September
2025 2024
Earnings per share - basic 32.0p 19.8p
- diluted 31.8p 19.7p
Profit for the financial year attributable to the owners of the Company (£m) 27.8 17.2
Weighted average number of shares - basic 86,998,223 86,950,951
- diluted 87,715,056 87,371,283
8. Cash and borrowings
Net debt
Net debt comprises cash and cash equivalents, offset by borrowings and IFRS 16
lease liabilities.
Year ended Year ended
30 September 30 September
2025 2024
£m £m
Cash and cash equivalents 24.2 29.3
Total 24.2 29.3
Bank loans due within one year (11.2) (7.5)
Loan payable to non-controlling interest (6.3) -
Borrowings due within one year (17.5) (7.5)
Bank loans due over one year (20.8) (25.0)
Loan payable to non-controlling interest (1.8) (7.9)
Borrowings due over one year (22.6) (32.9)
Current lease liabilities (1.9) (1.7)
Non-current lease liabilities (7.0) (8.3)
Net debt (24.8) (21.1)
Bank loans
Bank loans comprise the UK revolving credit facility and China banking
facility, split between a capital expenditure facility and a working capital
facility.
UK revolving credit facility
The Group has a banking facility of £60.0m (£40.0m committed and £20.0m
accordion) which expires in October 2028. Interest is charged at a rate of
SONIA +0.75% to SONIA +1.05% depending on the level of utilisation. The
facility contains covenant measures which are tested biannually, consisting of
leverage and interest cover.
As at 30 September 2025 none of the committed facility was drawn (30 September
2024: £nil drawn).
China banking facility
The Group's total capital expenditure facility is RMB 250m with the amount due
at 30 September 2025 £24.6m/RMB 232m (30 September 2024: £26.2m/RMB 243m).
The amount due on the capital expenditure facility is split between the amount
due within one year of £3.8m/RMB 35m (30 September 2024: £1.2m/RMB 11m) and
the amount due after one year of £20.8m/RMB 197m (30 September 2024:
£25.0m/RMB 232m). The purpose of the loan was to fund the construction of a
manufacturing facility in China. This manufacturing facility was commissioned
in April 2024.
At 30 September 2025 the capital expenditure facility was due for repayment in
December 2026. Post year end, in November 2025, the facility has been
refinanced through to June 2029 with the draw down of a new facility in
November 2026 to repay the existing facility. The amount due within one year
at 30 September 2025, detailed above, has not changed. Interest is charged at
the five-year Loan Prime Rate of the People's Bank of China, which has been
in the range of 3.50%-3.85% in the year ended 30 September 2025.
In the prior year £0.7m was capitalised as part of qualifying capital
expenditure within property, plant and equipment. Capitalisation ceased
in April 2024 when the property, plant and equipment to which the loans
relate was commissioned.
The working capital facility in China is RMB 150m (30 September 2024: RMB
150m). Each drawdown under the working capital facility is required to be
repaid at least annually, after which the balance can be redrawn. As such the
outstanding balance due on the working capital facility of £7.4m/RMB 70m
(30 September 2024: £6.3m/RMB 58m) is included within the amount due within
one year at 30 September 2025. Interest is charged at the one-year Loan Prime
Rate of the People's Bank of China +50 bps and is charged to the income
statement, included within finance costs.
Loan payable to non-controlling interest
The Group's loan payable to the non-controlling interest ('shareholder loan'),
Liaoning Xingfu New Material Co., Ltd. ('LX'), is interest bearing at 4% per
annum. Interest payable on the shareholder loan is rolled up into the value of
the loan, until repayment occurs. The purpose of the shareholder loan was to
fund the construction of a manufacturing facility in China. This manufacturing
facility was commissioned in April 2024. Interest payable was capitalised as
part of qualifying capital expenditure within property, plant and equipment
until the plant was commissioned.
The loan is unsecured and is denominated in Chinese Renminbi ('RMB'). The loan
is repayable in two instalments: the first is on 30 September 2026, with the
second on 30 September 2027, or such date as may be mutually agreed by the
shareholders, LX and Victrex Hong Kong Limited.
At 30 September 2025 the Sterling value of the loan, including rolled up
interest and the impact of exchange rate movement, was £8.1m (30 September
2024: £7.9m), with the amount due split between the amount due within one
year of £6.3m and the amount due after one year of £1.8m accordingly.
9. Derivative financial instruments
The notional contract amount, carrying amount and fair value of the Group's
forward exchange contracts are as follows:
As at 30 September As at 30 September
2025 2024
Notional contract amount Carrying amount and fair value Notional contract amount* Carrying amount and fair value
£m £m £m £m
Current assets 87.4 2.3 177.8 7.3
Current liabilities 75.8 (1.6) 10.3 (0.3)
163.2 0.7 188.1 7.0
* Notional contract amounts have been updated to reflect the absolute notional
contract amounts.
The fair values have been calculated by applying (where relevant), for
equivalent maturity profiles, the rate at which forward currency contracts
with the same principal amounts could be acquired on the balance sheet date.
These are categorised as Level 2 within the fair value hierarchy. Fair value
gains on foreign currency contracts of £3.7m have been recognised in the
income statement in the period (FY 2024 - gains of £5.2m).
10. Non-controlling interest
The non-controlling interest recognised relates to the Group's subsidiary
company, Victrex (Panjin) High Performance Materials co., Ltd ('VIPL'), where
the Group continues to hold a 75% equity interest with the remaining 25% held
by LX. VIPL is a limited liability company set up for the purpose of the
manufacture of PAEK polymer powder and granules, based in mainland China. The
income statement and balance sheet of VIPL are fully consolidated with the
share owned by LX represented by a non-controlling interest.
In the period to 30 September 2025 the subsidiary incurred a loss of £11.7m
(FY 2024: loss of £5.7m), of which £2.9m (FY 2024: £1.4m) is attributable
to the non-controlling interest. Total non-controlling interest as at 30
September 2025 is £(2.3)m (30 September 2024: £0.6m).
11. Exchange rates
The most significant Sterling exchange rates used in the financial statements
under the Group's accounting policies are:
Year ended Year ended
30 September 2025 30 September 2024
Average Closing Average Closing
US Dollar 1.30 1.33 1.26 1.32
Euro 1.19 1.14 1.16 1.18
The "average" exchange rates in the above table are the weighted average spot
rates applied to foreign currency transactions, excluding the impact of
foreign currency contracts. Gains and losses on foreign currency contracts, to
the point where transferred to profit or loss, where net hedging has been
applied for cash flow hedges, are separately disclosed in the income
statement.
12. Reconciliation of profit to cash generated from operations
Year ended Year ended
30 September 30 September
2025 2024
£m £m
Profit after tax for the year 24.9 15.8
Income tax expense 8.9 7.6
Result of associate - 21.2
Losses on equity investment 4.0 -
Net finance costs/(income) 2.0 1.2
Operating profit 39.8 45.8
Adjustments for:
Depreciation 24.2 21.5
Amortisation 0.7 1.7
Loss on disposal of non-current assets 0.1 0.1
Gain on early termination of long-term lease liabilities - (0.1)
Impairment of property, plant and equipment - 4.6
Equity-settled share-based payment transactions 3.5 0.2
Gains on derivatives recognised in income statement that have not yet settled 1.7 (2.4)
Decrease in inventories 5.0 17.2
Increase in trade and other receivables (4.1) (1.7)
Increase in trade and other payables 5.7 2.5
Retirement benefit obligations charge less contributions (0.7) (0.7)
Cash generated from operations 75.9 88.7
13. Alternative performance measures
We use alternative performance measures ('APM') to assist in presenting
information in an easily comparable, analysable and comprehensible form. The
measures presented in this report are used by the Board in evaluating
performance. The presentation of APMs should not be considered in isolation or
as a substitute for related financial measures prepared in accordance with
IFRS. The APMs presented in this report may differ from similarly titled
measures used by other companies.
Where one APM is derived from another APM, a cross-reference to the relevant
APM has been included, which then provides the reconciliation to the most
directly reconcilable line items. APM 1 to APM 10 below have been calculated
on a consistent basis to prior year. One additional APM, Net debt/EBITDA (APM
11), has been included in the current year because it has been used by the
Board to assess the business' ability to meet debt obligations using its
operational earnings.
APM 1 Operating profit before exceptional items (referred to as underlying
operating profit) is based on operating profit before the impact of
exceptional items. This metric is used by the Board to assess the underlying
performance of the business excluding items that are, in aggregate, material
in size and/or unusual or infrequent in nature. The exceptional item for FY
2025 within operating profit is a charge of £8.6m (FY 2024: charge of
£14.5m) relating to business process improvements including ERP system
implementation (FY 2024: business process improvements including ERP system
implementation and the impairment of property, plant and equipment relating to
gears manufacturing), further details of which are disclosed in note 5.
Year ended Year ended
30 September 30 September
2025 2024
£m £m
Operating profit 39.8 45.8
Exceptional items 8.6 14.5
Underlying operating profit 48.4 60.3
APM 2 Profit before tax and exceptional items (referred to as underlying
profit before tax) is based on profit before tax ('PBT') before the impact of
exceptional items. This metric is used by the Board to assess the underlying
performance of the business excluding items that are, in aggregate, material
in size and/or unusual or infrequent in nature. Exceptional items for FY 2025
are a charge of £12.6m (FY 2024: charge of £35.7m) relating to business
process improvements including ERP system implementation and the fair value
loss on equity investment and write off of associated receivables relating to
Surface Generation (FY 2024: business process improvements including ERP
system implementation, impairment of property, plant and equipment relating to
gears manufacturing, impairment of investment in associate and fair value loss
on the loans due from Bond), further details of which are disclosed in note 5.
Year ended Year ended
30 September 30 September
2025 2024
£m £m
Profit before tax 33.8 23.4
Exceptional items 12.6 35.7
Underlying profit before tax 46.4 59.1
APM 3 Constant currency revenue and associated metrics are used by the Board
to assess the year on year underlying performance of the business excluding
the impact of foreign currency rates, which can by nature be volatile.
Constant currency revenue metrics are reached by applying current year (FY
2025) weighted average spot rates to prior year (FY 2024) transactions. Gains
and losses on foreign currency net hedging are shown separately in the income
statement and are excluded from the constant currency calculations;
Group Year ended Year ended % change
30 September 30 September
2025 2024
£m £m
Revenue at reported currency 292.7 291.0 1%
Impact of FX translation - (7.8)
Revenue at constant currency 292.7 283.2 3%
Volume (tonnes) 4,164 3,731
ASP at constant currency (£/kg) 70.3 75.9 -7%
Year ended (Restated) % change
30 September Year ended
2025 30 September
Sustainable Solutions £m 2024
£m
Revenue at reported currency 233.9 229.1 2%
Impact of FX translation - (6.2)
Revenue at constant currency 233.9 222.9 5%
Year ended (Restated) % change
30 September Year ended
2025 30 September
Medical £m 2024
£m
Revenue at reported currency 58.8 61.9 -5%
Impact of FX translation - (1.6)
Revenue at constant currency 58.8 60.3 -2%
Note - The prior year comparatives for FY 2025 have been restated for APM 3 to
reflect the change in segmental reporting relating to the non-implantable
medical market. See note 4 for further details.
APM 4 Underlying operating cash conversion is used by the Board to assess
the business' ability to convert underlying operating profit into cash
effectively. Underlying operating cash conversion is underlying operating cash
flow as a percentage of underlying operating profit. Underlying operating cash
flow is underlying operating profit before depreciation, amortisation and loss
on disposal, less capital expenditure, adjusted for working capital movements.
Year ended Year ended
30 September 30 September
2025 2024
£m £m
Underlying operating profit (APM 1) 48.4 60.3
Depreciation, amortisation and loss on disposal* 25.0 23.3
Change in working capital 7.0 17.5
Capital expenditure (21.8) (32.6)
Underlying operating cash flow 58.6 68.5
Underlying operating cash conversion 121% 114%
*Excludes the impact of loss on disposal of right of use assets.
APM 5 Underlying EPS is earnings per share based on profit after tax but
before exceptional items divided by the weighted average number of shares in
issue. Further details of the exceptional items are disclosed in note 5. This
metric is used by the Board to assess the underlying performance of the
business excluding items that are, in aggregate, material in size and/or
unusual or infrequent in nature;
Year ended Year ended
30 September 30 September
2025 2024
£m £m
Profit after tax attributable to owners of the Company 27.8 17.2
Exceptional items 12.6 35.7
Tax on exceptional items (2.2) (8.0)
Profit after tax before exceptional items net of tax 38.2 44.9
Weighted average number of shares 86,998,223 86,950,951
Underlying EPS (pence) 43.9 51.7
APM 6 Underlying operating overheads is made up of sales, marketing and
administrative expenses, and research and development expenses, before
exceptional items. Further details of the exceptional items are disclosed in
note 5. This metric is used by the Board to assess the underlying performance
of the business excluding items that are, in aggregate, material in size
and/or unusual or infrequent in nature.
Year ended Year ended
30 September 30 September
2025 2024
£m £m
Sales, marketing and administrative expenses 74.0 71.0
Exceptional items (8.6) (14.5)
Research and development expenses 18.8 17.5
Underlying operating overheads 84.2 74.0
APM 7 Underlying dividend cover is used by the Board to measure the
affordability and sustainability of the regular dividend. Underlying dividend
cover is underlying earnings per share/total dividend per share. This excludes
special dividends.
2025 2024
p p
Underlying earnings per share (APM 5) 43.9 51.7
Total dividend per share 59.56 59.56
Underlying dividend cover (times) 0.7 0.9
APM 8 Return on Invested Capital ('ROIC') is used by the Board to assess the
return on investment at a Group level and provides a metric for long-term
value creation. ROIC is defined as profit after tax adjusted to exclude
exceptional items net of tax, finance costs and finance income ('ROIC adjusted
profit')/average adjusted net assets. Adjusted net assets is total equity
attributable to shareholders at the year end excluding cash and cash
equivalents, other financial assets, retirement benefit asset, retirement
benefit obligations and borrowings. Average adjusted net assets is (adjusted
net assets at the start of the year plus adjusted net assets at the end of the
year)/2.
Year ended Year ended
30 September 30 September
2025 2024
£m £m
Profit after tax attributable to owners of the Company 27.8 17.2
Exceptional items 12.6 35.7
Tax on exceptional items (2.2) (8.0)
Finance income (0.4) (0.7)
Finance costs 2.4 1.9
ROIC adjusted profit 40.2 46.1
Net assets 431.2 461.6
Cash and cash equivalents (24.2) (29.3)
Retirement benefit asset (9.3) (10.7)
Retirement benefit obligations 2.4 2.5
Borrowings 40.1 40.4
Adjusted net assets 440.2 464.5
Average adjusted net assets 452.4 482.2
ROIC 9% 10%
APM 9 Underlying PBIT is used by the Group as the financial measure on which
the Executive Director's performance is assessed for the annual bonus targets
as set out in the Directors' Remuneration Report. This metric removes the
impact of finance income and costs from the underlying profit before tax
metric (APM 2).
Year ended Year ended
30 September 30 September
2025 2024
£m £m
Underlying profit before tax (APM 2) 46.4 59.1
Finance income (0.4) (0.7)
Finance costs 2.4 1.9
Underlying PBIT 48.4 60.3
APM 10 Underlying effective tax rate is used by the Board to assess the
Group's effective rate excluding the impact of exceptional items. This metric
is the underlying tax charge divided by underlying profit before tax. The
underlying tax charge is the tax expense adjusted to exclude the tax effect of
exceptional items.
2025 2025 2024 2024
£m % £m %
Underlying profit before tax (APM 2) 46.4 59.1
Tax expense / Effective tax rate 8.9 26.3% 7.6 32.5%
Tax on exceptional items 3.3 8.9
Less: tax effect of exceptional items not deductible for tax purposes (1.1) (3.4)
Underlying tax charge / Underlying effective tax rate 11.1 23.9% 13.1 22.2%
APM 11 Net debt/EBITDA is used by the Board to assess the business' ability to
meet debt obligations using its operational earnings. Net debt is defined as
total interest-bearing liabilities minus cash and cash equivalents. EBITDA is
underlying PBIT before depreciation, amortisation and loss on disposal.
2025 2024
£m £m
Net debt (note 8) 24.8 21.1
Underlying PBIT (APM 9) 48.4 60.3
Depreciation, amortisation and loss on disposal* 25.0 23.3
EBITDA 73.4 83.6
Net debt/EBITDA 0.34 0.25
*Excludes the impact of loss on disposal of right of use assets.
Forward-looking statements
Sections of this Financial Report may contain forward-looking statements,
including statements relating to: certain of the Group's plans and
expectations relating to its future performance, results, strategic
initiatives and objectives, future demand and markets for the Group's products
and services; research and development relating to new products and services;
and financial position, including its liquidity and capital resources.
These forward-looking statements are not guarantees of future performance. By
their nature, all forward looking statements involve risks and uncertainties
because they relate to events that may or may not occur in the future, and are
or may be beyond the Group's control, 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; the
impact of, and changes in, legislation or the regulatory environment
(including tax); and the outcome of litigation.
Accordingly, the Group's actual results and financial condition may differ
materially from those expressed or implied in any forward-looking statements.
Forward-looking statements in this Financial Report are current only as of the
date on which such statements are made. The Group undertakes no obligation to
update any forward-looking statements, save in respect of any requirement
under applicable law or regulation. Nothing in this Financial Report shall be
construed as a profit forecast.
Shareholder information:
Victrex'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 (http://www.victrexplc.com)
Financial calendar:
Ex-dividend date 29 January 2026
Record date# 30 January 2026
AGM 6 February 2026
Payment of final dividend 27 February 2025
Announcement of half-year results May 2026
Payment of interim dividend June/July 2026
# The date by which shareholders must be recorded on the share register to
receive the dividend
Victrex plc
Registered in England
Number 2793780
Tel: +44 (0) 1253 897700
www.victrexplc.com (http://www.victrexplc.com)
ir@victrex.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 PRETBBBTMTJMTJA
Copyright 2019 Regulatory News Service, all rights reservedRecent news on Victrex
See all newsREG - Victrex PLC - Preliminary Results
AnnouncementREG - Victrex PLC - Block listing Interim Review
AnnouncementREG - Victrex PLC - Total Voting Rights
AnnouncementREG - Stock Exch Notice - Admission to Trading - 21/11/2025
AnnouncementREG - Victrex PLC - Additional Listing
Announcement