Final Results

Victrex PLC
5 December 2000
                                                            5th December 2000

Victrex plc



         Results announcement for the year ended 30th September 2000

    -     Volume up 24% to 1,321 tonnes (1999: 1,067 tonnes)

    -     Turnover up 27% to £58.7m (1999: £46.4m)

    -     EBITDA up 40% to £20.3m (1999: £14.4m)

    -     Profit before tax up 25% to £15.9m (1999: £12.7m)

    -     Earnings per share up 30% to 15.3p (1999: 11.8p)

    -     Final dividend of 4.3p making a total of 6.1p for the year, an        
         increase of 11% (1999: 5.5p)


Chairman Peter Warry commented:

'I am pleased to report a year of significant progress for Victrex with record
sales and profits.


The new year has started strongly.  Whilst it is too early to comment on the
outcome for the year, we remain confident in the Group's growth potential and
are investing further resources to enable this to be achieved.'


Enquiries


Victrex plc



David Hummel, Chief Executive            0207 357 9477 (5th December 2000)

Michael Peacock, Finance Director        01253 897700 (thereafter)


Hogarth Partnership Limited



Nick Denton / John Olsen                 0207 357 9477




Victrex plc

       Preliminary results statement for year ended 30th September 2000



I am pleased to report a year of significant progress for Victrex with record
sales and profits.



Results


Turnover for the year was £58.7m, an increase of 27% over last year.  Gross
profit was £27.7m (1999: £21.1m) representing 47.1% of turnover (1999: 45.6%).
The margin improvement was principally due to increased average selling
prices and a full year's contribution from the melt filtration facility.



Sales, marketing and administrative expenses increased to £10.4m (1999: £8.0m)
due to further investment in technology and marketing, amortisation of
goodwill attributable to the DFDPM business since acquisition and increased
staff bonuses (reflecting the strong business performance). Exchange rates
compared with the previous year have not had a material impact on profit as
the effects of a stronger Yen and Dollar have been largely offset by the
weakening Euro.



Earnings before interest, tax, depreciation and amortisation amounted to £
20.3m (1999: £14.4m) representing 34.5% of turnover (1999: 31.1%).



Net interest costs increased to £1.4m (1999: £0.4m) resulting in net interest
cover of 12 times.  Profit before tax was £15.9m (1999: £12.7m) up 25%.  After
a reduction in the effective tax rate to 24.5% (1999: 27.2%), principally due
to the DFDPM acquisition, basic earnings per share were up 30% to 15.3p (1999:
11.8p).



Cash flow



Cash flow from operating activities increased to £28.9m (1999: £10.0m).  In
addition to the effect of improved trading, operating cash flow benefited from
a working capital decrease of £8.9m.  This was mainly due to reduced stock
levels resulting from our increased ability to manage the supply chain
following the DFDPM acquisition and the commencement of the joint venture with
Laporte plc.  These new supply arrangements were also the main driver behind
increased creditors which were the other significant contributor to the
working capital reduction.



The DFDPM business was acquired for £21.0m (including associated costs) which
was funded by additional borrowings.  Other capital expenditure payments
amounted to £2.2m (1999: £4.7m).  Taxation, interest, finance costs and
dividend payments showed a net increase of £0.1m over the previous year.



Net debt at the year end stood at £11.1m (1999: £8.1m) representing balance
sheet gearing of 32%.  This shows a significant reduction from the position at
the end of the first half (£24.4m) which reflected the debt incurred in the
DFDPM acquisition.



Dividend



In recognition of this improved performance, the Directors recommend the
payment of a final dividend of 4.3p per share, on 1 February 2001 to all
shareholders on the register on 3 January 2001.  This makes a total dividend
of 6.1p per share for the year, an increase of 11% over last year.  This
represents dividend cover of 2.5.



Operational review



Total sales volume was 24% ahead of the previous year at 1,321 tonnes (1999:
1,067 tonnes) with growth across all of our major market segments.  Of our
principal markets, transport grew by 16% to 444 tonnes, industrial by 24% to
391 tonnes and teletronics by 28% to 312 tonnes.



European volume (645 tonnes) saw continued strong growth with a 22% increase
over the previous year.  This improvement was experienced across all segments
including automotive which is the largest market segment for our business in
Europe.



United States volume (535 tonnes) which was 18% up on last year has strongly
recovered from the slowdown experienced in the second half of the previous
year.  This recovery was principally due to increased sales in the industrial,
automotive and teletronics segments.



The Asia-Pacific region saw a step change in business activity with volume
(141 tonnes) up by 66% on the previous year.  This increase was largely due to
increased demand in the teletronics and automotive segments.



As previously reported, on 23 December 1999 we completed the acquisition of
the DFDPM business and the joint venture agreement with Laporte plc for the
conversion of DFDPM and overall supply of BDF, our key raw material.  This new
arrangement is working well and is allowing us to better integrate our raw
material supply chain to support future expansion.



Development pipeline & new product initiatives



The development pipeline measures the future potential of specific new
applications we are working on with end users.  It represents our best
estimate of the mature annualised volume (MAV) that could be generated if all
these applications were commercially developed.  The pipeline currently has an
estimated MAV of approximately 1,840 tonnes (1999: 1,800 tonnes).  During the
year 193 new applications were commercialised.  This reflects our success in
driving applications through the pipeline.



The applications in the pipeline cover all our market segments, particularly
automotive, teletronics and industrial and provide a sound base for the
future.



We are progressing research on the use of our product as membrane material in
fuel cells and are encouraged by the results.  In addition, we are negotiating
with possible partners to maximise the potential for our technology in this
area.



There has been a very positive response to our biocompatible product

PEEK-OPTIMATM which was launched last year.  The US FDA has approved the first
human implantable device composed of PEEK-OPTIMATM.  We have entered into a
number of long term supply agreements with device manufacturers and product
shipments have now commenced.



Our new powder coating process has been formally launched as PEEK-COATTM
following fine tuning of both the product and processing techniques with a
number of commercial coaters.  We are working with end users across the
regions to develop applications using the process.



Outlook



The new year has started strongly. Whilst it is too early to comment on the
outcome for the year, we remain confident in the Group's growth potential and
are investing further resources to enable this to be achieved.




Peter Warry
Chairman


CONSOLIDATED PROFIT AND LOSS ACCOUNT


                                                                 2000      1999
Year ended 30 September                                Note      £000      £000
Turnover: Group and share of Japanese joint venture            63,238    48,735
Less: share of Japanese joint venture                         (4,502)   (2,330)
Turnover                                                  2    58,736    46,405
Cost of sales                                                (31,072)  (25,257)
Gross profit                                                   27,664    21,148
Sales, marketing and administrative expenses                 (10,424)   (8,029)
Group operating profit                                         17,240    13,119
Share of operating profit in Japanese joint venture               125        52
Total operating profit                                         17,365    13,171
Interest receivable                                               159        70
Interest payable                                              (1,606)     (512)
Profit on ordinary activities before taxation                  15,918    12,729
Taxation on profit on ordinary activities                     (3,900)   (3,462)
Profit on ordinary activities after taxation                   12,018     9,267
Equity dividends paid and proposed                        8   (4,778)   (4,306)
Retained profit for the financial year                          7,240     4,961


The Company                                                     5,028     7,640
Group undertakings and joint ventures                           2,212   (2,679)
                                                                7,240     4,961

Earnings per ordinary share   - basic                     3     15.3p     11.8p
                              - diluted                   3     15.2p     11.8p



The Group's turnover and operating profit arise from continuing operations in
both the current and preceding year.


There were no material differences between reported profits and historical
cost profits on ordinary activities before taxation in either of the above
financial years.



CONSOLIDATED BALANCE SHEET


                                                                   2000    1999
As at 30 September                                                 £000    £000
Fixed assets
Intangible assets                                                11,765       -
Tangible assets                                                  30,652  24,276
Investments                                                         140     140
Investment in Japanese joint        Share of gross assets         1,624   1,355
venture :
                                    Share of gross liabilities  (1,939) (1,687)
                                                                 42,242  24,084
Current assets
Stocks                                                           10,839  13,925
Debtors: amounts falling due within one year                      7,141   6,700
Cash at bank and in hand                                          1,376       -
                                                                 19,356  20,625
Creditors: amounts falling due within one year                 (14,021) (9,249)
Net current assets                                                5,335  11,376
Total assets less current liabilities                            47,577  35,460
Creditors: amounts falling due after more than one year        (12,333) (7,400)
Net assets                                                       35,244  28,060


Capital and reserves
Called up share capital                                             786     785
Share premium account                                            10,243  10,155
Profit and loss account                                          24,215  17,120
Equity shareholders' funds                                       35,244  28,060



CONSOLIDATED CASH FLOW STATEMENT


                                                                   2000   1999
For the year ended 30 September                           Note     £000   £000
Net cash inflow from operating activities                    4  28,875 10,046
Return on investments and servicing of finance
Interest received                                                  159      70
Interest paid                                                  (1,180)   (508)
Finance costs                                                    (197)      -
Net cash outflow from returns on investment and servicing      (1,218)   (438)
of finance
Taxation - Taxation paid                                       (3,167) (4,160)
Net cash outflow from capital expenditure - Purchase of        (2,178) (4,678)
tangible fixed assets
Acquisitions
Purchase of business                                        5 (19,900)      -
Associated acquisition costs                                   (1,119)      -
Net cash outflow from acquisitions                            (21,019)      -
Equity dividends paid                                          (4,422) (4,129)
Cash outflow before financing                                  (3,129) (3,359)
Financing
Issue of ordinary share capital                                      1       1
Share purchase                                                      -    (139)
Premium on issue of ordinary shares under option                    96     113
Debt due after one year - increase in long term borrowing        5,100   1,800
Net cash inflow from financing                                   5,197   1,775
Increase/(decrease) in cash in the period                   6    2,068 (1,584)


CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES


                                                                    2000   1999
For the year ended 30 September                                     £000   £000
Profit for the financial year                                     12,018  9,267
Exchange (loss)/gain on consolidation                              (145)      1
Total recognised gains and losses relating to the financial year  11,873  9,268




RECONCILIATIONS OF MOVEMENTS IN SHAREHOLDERS' FUNDS


                                                                2000       1999
For the year ended 30 September                                 £000       £000
Profit for the financial year                                 12,018      9,267
Dividends                                                    (4,778)    (4,306)
Retained profit for the financial year                         7,240      4,961
Exchange adjustment                                            (145)          1
Issue of ordinary shares exercised under option                    1          1
Premium on issue of ordinary shares under option                  96        113
Share issue costs                                                (8)       (50)
Net addition to shareholders' funds                            7,184      5,026
Opening shareholders' funds                                   28,060     23,034
Closing shareholders' funds                                   35,244     28,060



NOTES TO THE ACCOUNTS



1  Basis of preparation

The financial statements have been prepared on the basis of the accounting
policies set out in the Group's last Annual Report and Accounts.


The joint venture with Laporte commenced trading on 1 January 2000 and has
been accounted for as a joint arrangement that is not an entity in accordance
with FRS 9.


2   Analysis of turnover

Analysis of turnover by geographical market is as follows:


                                                           2000            1999
                                                           £000            £000
Europe                                                   26,722          22,043
United States of America                                 24,977          20,626
Asia-Pacific                                              7,037           3,736
                                                         58,736          46,405

3   Earnings per share


                                                                  2000     1999

Earnings per ordinary share  - basic                             15.3p    11.8p
                                            - diluted            15.2p    11.8p


Earnings per ordinary share is based on the Group's profit on ordinary
activities after taxation of £12,018,000

(1999: £9,267,000).

The weighted average number of shares used in the calculation is :   
                               basic  78,543,923 (1999: 78,453,630)
                             diluted  79,131,054 (1999: 78,577,969)





4  Reconciliation of operating profit to net cash flow


                                                                  2000    1999
                                                                  £000    £000
Operating profit                                                17,365  13,171
Depreciation and amortisation charge                             2,908   1,271
Earnings before interest, taxation, depreciation and            20,273  14,442
amortisation
Decrease/(increase) in stocks                                    5,386 (3,997)
Increase in debtors                                              (441)   (152)
Increase/(decrease) in creditors                                 3,912   (532)
Japanese joint venture profit in stock elimination                  23     337
Share of operating profit in Japanese joint venture              (125)    (52)
Effect of foreign exchange rate changes                          (153)       -
Net cash inflow from operating activities                       28,875  10,046





5   Purchase of business

On 23 December 1999 the DFDPM business of Laporte plc was acquired.

                                                                           2000
Net assets acquired                                                        £000

Tangible fixed assets                                                     6,000
Knowhow                                                                   6,100
Stock                                                                     2,300
                                                                         14,400
Goodwill                                                                  5,500
Consideration                                                            19,900


This acquisition was funded by additional borrowings.  No fair value
adjustments were made in relation to the acquired assets.


6    Reconciliation of net cash flow to movement in net debt


                                                               2000        1999
                                                               £000        £000

Increase/(decrease) in cash in the period                     2,068     (1,584)
Cash inflow from increase in debt                           (5,100)     (1,800)
Movement in net debt in the period                          (3,032)     (3,384)
Net debt at beginning of the period                         (8,092)     (4,708)
Net debt at end of the period                              (11,124)     (8,092)


7    Exchange rates



The Sterling exchange rates used in the accounts under the Group's accounting
policies are :


                              Average exchange rate       Closing exchange rate
                          2000                 1999          2000          1999
US Dollar                 1.61                 1.64          1.63          1.68
Deutschemark              2.95                 2.83          3.07          2.75
Yen                        171                  198           156           174

8     Dividend and Annual General Meeting

The proposed final dividend will be paid on 1 February 2001 to ordinary
shareholders on the share register at the close of business on 3 January 2001.
The Annual General Meeting of the Company will be held on 23 January 2001 at
Cazenove & Co, Conference Suite, 4 King's Arms Yard, London, EC2R 7AN.


9     Financial Statements

The above financial information does not comprise full financial statements
within the meaning of the Companies Act 1985.  The results for the years ended
30 September 2000 and 1999 have been extracted from the full accounts of those
periods.  The auditors have given an unqualified report on the accounts for
both years.  The accounts for the year ended 30 September 1999 have been
delivered to the Registrar of Companies.  The accounts for the year ended 30
September 2000 are to be posted to shareholders on 15 December 2000 and will
be available from the Company's registered office at Victrex Technology
Centre, Hillhouse International, Thornton Cleveleys, Lancashire, FY5 4QD.