Final Results

Victrex PLC
09 December 2003

                                                               9th December 2003

                                   Victrex plc

          Results announcement for the year ended 30th September 2003

•    Volume up 23% to 1,481 tonnes (2002: 1,205 tonnes)
     
•    Turnover up 21% to £71.5m (2002: £59.1m)

•    Gross margin maintained at 55%

•    Profit before taxation up 18% to £22.6m (2002: £19.0m)

•    Final dividend of 5.3p making a total of 7.5p for the year, an increase
     of 7%


Chairman Peter Warry commented:

'I am pleased to report a year of continued progress, with good sales and
profits growth and further success in developing new product applications.

Since the year end, Asia-Pacific has shown further strong growth as the result
of our greater focus on this region.  Overall, sales volume for the first two
months of the new financial year was in line with our expectations.
Accordingly, we remain confident in the underlying growth potential for 
Victrex.'


Enquiries

Victrex plc

David Hummel, Chief Executive              0207 357 9477  (9th December 2003)
Michael Peacock, Finance Director          01253 897700  (thereafter)

Hogarth Partnership Limited
Nick Denton / Tom Leatherbarrow                  0207 357 9477


                                  Victrex plc

      Preliminary results statement for the year ended 30th September 2003

I am pleased to report a year of continued progress, with good sales and profits
growth and further success in developing new product applications.

RESULTS

Turnover for the year was £71.5m (2002: £59.1m).  Gross profit increased by
21.3% to £39.4m (2002: £32.5m) representing 55.1% of turnover (2002: 54.9%).

As forecast, sales, marketing and administrative expenses increased to £16.8m
(2002: £13.0m) as a result of our programme of additional investment in product
development and marketing, together with higher insurance costs and increased
staff bonuses.

Earnings before interest, tax, depreciation and amortisation amounted to £27.2m
(2002: £23.3m) representing 38.1% of turnover (2002: 39.4%).  Compared with the
previous year, exchange rates have had an adverse impact of £1.6m on profit due
to a weaker Dollar and Yen, partially offset by a stronger Euro.

Net interest costs were reduced to £0.3m (2002: £0.5m) resulting in net interest
cover of 73 times.  Profit before tax was £22.6m (2002: £19.0m) up 18.5% and
basic earnings per share were up 17.9% at 19.1p (2002: 16.2p).  The overall
effective tax rate (including deferred tax) remained at 32.5%.

CASH FLOW

Cash flow from operating activities increased to £26.1m (2002: £17.1m),
primarily as a result of improved trading and a working capital increase of only
£0.8m (2002: £6.1m).

Capital expenditure payments amounted to £6.5m (2002: £8.8m) and were mainly
related to the capacity uprate.  Taxation paid was £6.2m (2002: £5.2m) as a
result of increased profits.

At the year end, the Group was ungeared with net cash of £6.0m (2002: net debt
£1.7m), which leaves us well placed to support the future growth of the
business.  The Group has a committed bank facility of £40m which expires in
September 2008, all of which was undrawn at the year end.

DIVIDEND

In recognition of this continued progress, the Directors have recommended a
final dividend of 5.3p per ordinary share, making a total of 7.5p per ordinary
share for the year, an increase of 7.1% over last year.  This represents
dividend cover of 2.5 times.

SALES

Total sales volume increased by 22.9% to 1,481 tonnes (2002: 1,205 tonnes) with
second half volume of 738 tonnes (2002: 648 tonnes) compared with 743 tonnes
(2002: 557 tonnes) for the first half.  This reflects strong sustained volume
growth since the first half of the previous year.

Of our principal market segments, transport sales volume was up 17.2% on 2002 at
484 tonnes which was principally due to increased automotive sales in Europe and
Asia-Pacific.  Second half volume was the same as the first half at 242 tonnes.

Industrial sales volume at 435 tonnes, showed an increase of 28.2% over the
previous year mainly as a result of increased demand for machinery, down hole,
and compressor applications in Europe and the United States.  Sales volume in
the second half was 218 tonnes, in line with the first half at 217 tonnes.

Electronics sales volume was 351 tonnes, an increase of 24.4% over 2002.  Second
half sales at 181 tonnes were marginally up on the first half of 170 tonnes,
largely due to further increases in semiconductor sales, building on the
recovery we saw in the first half.

Regionally, Europe achieved a record sales volume of 791 tonnes which was 21.7%
up on 2002, with growth across all market segments.  Second half sales volume
(398 tonnes) was slightly ahead of the strong first half performance (393
tonnes).

United States volume increased by 20.7% to 496 tonnes, largely due to increased
demand in the industrial and electronics segments.  Sales volume for the second
half (243 tonnes) was slightly lower than the first half (253 tonnes) because of
some softness in demand during the summer months.

Asia-Pacific sales volume grew by 34.7% reaching a record level of 194 tonnes.
In addition to growth in the electronics (which remains the largest market
segment in this region) and industrial segments, transport experienced a step
change in volume achieved due to increased automotive sales.  Second half sales
volume (97 tonnes) was identical to the first half.

BUSINESS DEVELOPMENT

The future growth of the business is underpinned by our ability to develop new
applications and market areas for our polymers.  This is why we are undertaking
the programme of additional investment in sales and marketing and product
research and development as announced in February.  The particular areas of
focus are Asia-Pacific (where we see significant growth potential), the delivery
of a global approach to our sales channels and faster development of new
products and applications worldwide.

We have now completed the necessary organisational changes and upgraded our
communications network and IT infrastructure as planned.

It is, therefore, encouraging to note a significant increase in the rate at
which we commercialise developments.  During the year we commercialised 433 new
applications (2002: 249) having an estimated mature annualised volume ('MAV') of
470 tonnes (2002: 210 tonnes).  We have also continued to identify and develop
new potential applications which will enable us to maintain growth in the medium
term.  This faster throughput has increased the productivity of the development
pipeline, which measures the future potential of all of the specific development
applications we are working on with end users.  At the year end, the pipeline
contained 1,508 developments (2002: 1,488) with an estimated MAV of 2,081 tonnes
(2002: 2,316 tonnes).

Technical development of the Victrex proprietary ionomer is continuing under our
fuel cell membrane alliance with Ballard Power Systems Inc.

Invibio(R) continues to perform ahead of expectations and entered into twenty
four additional long term agreements with implantable medical device
manufacturers during the year.  Markets covered by these new agreements include
orthopaedic, cardiovascular and drug delivery.  Currently, more than half of our
customers have had at least one device incorporating PEEK-OPTIMA(R) cleared by
regulatory bodies.

SUPPLY CHAIN

The supply chain can currently support 2,300 tonnes per annum of VICTREX(R)
PEEKTM sales which remains sufficient for our short term needs.  We have now
completed the uprate of our polymer plant to 2,800 tonnes.  The uprate of the
BDF supply chain is also largely complete but will require the implementation of
some minor capital projects and processing improvements to support this
increased polymer capacity.

OUTLOOK

Since the year end, Asia-Pacific has shown further strong growth as the result
of our greater focus on this region.  Overall, sales volume for the first two
months of the new financial year was in line with our expectations.
Accordingly, we remain confident in the underlying growth potential for Victrex.

Peter Warry
Chairman
8 December 2003


CONSOLIDATED PROFIT AND LOSS ACCOUNT

                                                                                     2003         2002
For the year ended 30 September                                         Note         £000         £000

Turnover: Group and share of Japanese joint venture                                76,616       63,268
Less: share of Japanese joint venture                                             (5,116)      (4,181)
Turnover                                                                   2       71,500       59,087
Cost of sales                                                                    (32,131)     (26,634)
Gross profit                                                                       39,369       32,453
Sales, marketing and administrative expenses                                     (16,841)     (13,011)
Group operating profit                                                             22,528       19,442
Share of operating profit in Japanese joint venture                                   350           70
Total operating profit                                                             22,878       19,512
Interest receivable                                                                   107           75
Interest payable and other similar charges                                          (420)        (538)
Profit on ordinary activities before taxation                                      22,565       19,049
Taxation on profit on ordinary activities                                         (7,334)      (6,191)
Profit on ordinary activities after taxation                                       15,231       12,858
Equity dividends paid and proposed                                         7      (5,989)      (5,539)
Retained profit for the financial year                                              9,242        7,319
The Company                                                                         8,037        4,075
Group undertakings and joint ventures                                               1,205        3,244
                                                                                    9,242        7,319
Earnings per ordinary share - Basic                                        3        19.1p        16.2p
                              Diluted                                      3        19.0p        16.0p



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

                                                                                2003          2002
As at 30 September                                                              £000          £000

Fixed assets
Intangible assets                                                              7,949         9,221
Tangible assets                                                               42,992        39,919
Investments                                                                    1,693         1,053
Investment in Japanese joint      share of gross assets                        1,643         1,483
venture
                                  share of gross liabilities                 (1,843)       (1,826)
                                                                              52,434        49,850
Current assets
Stocks                                                                        16,415        13,946
Debtors                                                                        9,369         8,167
Cash at bank and in hand                                                       6,040         6,341
                                                                              31,824        28,454
Creditors: amounts falling due within one year                              (17,150)      (14,257)
Net current assets                                                            14,674        14,197
Total assets less current liabilities                                         67,108        64,047
Creditors: amounts falling due after more than one year                            -       (7,912)
Provisions for liabilities and charges                                       (5,259)       (4,378)
Net assets                                                                    61,849        51,757
Capital and reserves
Called up share capital                                                          802           796
Share premium account                                                         12,743        11,885
Profit and loss account                                                       48,304        39,076
Equity shareholders' funds                                                    61,849        51,757



CONSOLIDATED CASH FLOW STATEMENT


                                                                                             2003         2002
For the year ended 30 September                                                 Note         £000         £000

Net cash inflow from operating activities                                          4       26,104       17,143
Return on investments and servicing of finance
Interest received                                                                             107           75
Interest paid                                                                               (373)        (500)
Net cash outflow from returns on investment and servicing of finance                        (266)        (425)
Taxation - Taxation paid                                                                  (6,243)      (5,202)
Net cash outflow from capital expenditure - Purchase of tangible fixed assets             (6,505)      (8,811)
Equity dividends paid                                                                     (5,615)      (5,379)
Net cash inflow/(outflow) before financing                                                  7,475      (2,674)
Financing
Issue of ordinary shares exercised under option                                                 6            1
Premium on issue of ordinary shares exercised under option                                    858          280
Share purchase                                                                              (640)        (304)
Debt due after more than one year - (decrease)/increase in long term                      (8,000)        8,000
borrowing
Net cash (outflow)/inflow from financing                                                  (7,776)        7,977
(Decrease)/increase in cash in the year                                            5        (301)        5,303



CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES


                                                                                        2003         2002
For the year ended 30 September                                                         £000         £000

Profit for the financial year                                                         15,231       12,858
Exchange loss on consolidation                                                          (14)        (109)
Total recognised gains and losses relating to the financial year                      15,217       12,749
Prior year adjustment made in 2002                                                         -      (3,178)
Total recognised gains for the financial year                                         15,217        9,571


RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS


                                                                                        2003         2002
For the year ended 30 September                                                         £000         £000

Profit for the financial year                                                         15,231       12,858
Equity dividends paid and proposed                                                   (5,989)      (5,539)
Retained profit for the financial year                                                 9,242        7,319
Exchange loss on consolidation                                                          (14)        (109)
Issue of ordinary shares exercised under option                                            6            1
Premium on issue of ordinary shares exercised under option                               858          280
Net movement in shareholders' funds                                                   10,092        7,491
Opening shareholders' funds                                                           51,757       44,266
Closing shareholders' funds                                                           61,849       51,757



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.
     
2    Analysis of turnover

     An analysis of turnover by origin and customer location is as follows:


                                                                       2003                  2002
                                                                       £000                  £000

Europe                                                               36,100                28,693
United States of America                                             26,547                22,784
Asia-Pacific                                                          8,853                 7,610

                                                                     71,500                59,087
     
3   Earnings per share


                                                                       2003                  2002
Basic                                                                 19.1p                 16.2p
Diluted                                                               19.0p                 16.0p


Earnings per ordinary share is based on the Group's profit on ordinary
activities after taxation of £15,231,000 (2002: £12,858,000).

The weighted average number of  shares used in the calculation is :   

                               Basic 79,861,763 (2002: 79,557,034); 
                               Diluted 80,152,779 (2002: 80,136,347).

4    Reconciliation of operating profit to net cash inflow from operating 
     activities

                                                                            2003          2002
                                                                            £000          £000

                   Operating profit                                       22,878        19,512
                   Depreciation and amortisation charge                    4,329         3,785
                   Earnings before interest, taxation, depreciation       27,207        23,297
                   and amortisation
                   Increase in stocks                                    (2,469)       (6,053)
                   (Increase)/decrease in debtors                        (1,142)         2,658
                   Increase/(decrease) in creditors                        2,861       (2,657)
                   Japanese joint venture profit in stock                     11            77
                   elimination
                   Share of operating profit in Japanese joint             (350)          (70)
                   venture
                   Effect of foreign exchange rate changes                  (14)         (109)
                   Net cash inflow from operating activities              26,104        17,143

5    Reconciliation of net cash flow to movement in net debt

                                                                          2003               2002
                                                                          £000               £000

(Decrease)/increase in cash in year                                      (301)              5,303
Cash outflow/(inflow) from decrease in debt                              8,000            (8,000)
Movement in net cash/(debt) in year                                      7,699            (2,697)
Net (debt)/cash at beginning of year                                   (1,659)              1,038
Net cash/(debt) at end of year                                           6,040            (1,659)
     
6    Exchange rates

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

                                          Average exchange rate       Closing exchange rate
                                             2003          2002          2003          2002
US Dollar                                    1.46          1.39          1.54          1.36
Euro                                         1.54          1.59          1.48          1.61
Yen                                           179           154           188           173
     
7    Dividend and Annual General Meeting

     The proposed final dividend will be paid on 3 March 2004 to ordinary
     shareholders on the share register at the close of business on 6 February 
     2004. The Annual General Meeting of the Company will be held on 10 February 
     2004 at The Great Eastern Hotel, Liverpool Street, London, EC2M 7QN.
     
8    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 2003 and 2002 have been extracted from the full accounts 
     for those periods.  The auditors have given an unqualified report on the 
     accounts for both years.  The accounts for the year ended 30 September 2002 
     have been delivered to the Registrar of Companies.  The accounts for the 
     year ended 30 September 2003 are to be posted to shareholders on 19 
     December 2003 and will be available from the Company's registered office at 
     Victrex Technology Centre, Hillhouse International, Thornton Cleveleys, 
     Lancashire, FY5 4QD.



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