Final Results

RNS Number : 0926V
Victrex PLC
10 December 2013
 



 

10 December 2013

 

Victrex plc - Preliminary Results 2013

 

Victrex plc, an innovative world leader in high performance polymer solutions, today announces its preliminary results for the year ended 30 September 2013.

 

 

'Robust performance and an improved second half'

 

FY 2013

FY 2012

% change

Revenue

£221.9m

£219.8m

1%

Profit before tax

£94.6m

£94.5m

0%

EPS

86.5p

85.7p

1%

Gross margin

66.6%

66.3%

30bps

Dividend per share*

43.0p (proposed)

37.4p

15%

 

*Dividend per share comprises a proposed final dividend of 32.65p (2012: 28.4p), in addition to the Group's interim dividend of 10.35p (H1 2012: 9.0p)

 

 

Highlights:

 

·     Group volumes and revenue ahead

 

·     Good underlying trading in VPS; Invibio stabilised

 

·     Gross margins remain strong at 66.6%

 

·     Continued investment in key growth programmes

 

·     Full year dividend increased by 15% to 43.0p per share

 

Anita Frew, Chairman of Victrex, said: "I am pleased to report that we delivered a resilient performance at Victrex this year, with good underlying trading and improvement in the second half year.

 

"This has been a year of investment in our business to accelerate and underpin our future growth; investment in new capacity, in innovation and in new talent, to build, enhance and further differentiate our capabilities now and into the future. Whilst continuing to invest, we were able to maintain our strong profitability, with record cash generation and strong margins.

 

"Whilst it remains early in our new financial year, our momentum from the second half of 2013 has continued, with good underlying growth in VPS and recovery in Invibio. Although we remain mindful of the wider macro-economic environment, we are encouraged by the potential across our business."

 

Enquiries:

 

Victrex plc:

 

Andrew Hanson, Head of Investor Relations                                      +44 (0) 7809 595831

Steve Barrow, Group Finance Director                                              +44 (0) 1253 897700

David Hummel, Chief Executive                                                         +44 (0) 1253 897700

 

 

 

MHP Communications:

 

Nick Denton / James White                                                                +44 (0) 208 128 8600

 

 

About Victrex:

 

Victrex is an innovative world leader in high performance polymer solutions. Every day, millions of people rely on products or applications which contain our materials, from smartphones, aeroplanes and cars to oil & gas operations and medical devices. With over 30 years' experience, we are investing in technology leadership to deliver new solutions to our customers and our markets. Find out more at www.victrexplc.com

 

A presentation for investors and analysts will be held at 9.30am (GMT) this morning at the Andaz Hotel, Liverpool Street, London, EC2M 7QN. A telephone dial in facility will be available for analysts and investors who are unable to attend the presentation, of which details are available from Ben Griffiths at MHP Communications on 0203 128 8106. The presentation can be viewed on Victrex's website at www.victrexplc.com.

 

 

 

Final results statement for the year ended 30 September 2013

 

 

Group financial results

 

Group revenue for the year was 1% ahead of the prior year reflecting a robust Group performance and stronger underlying average selling price, resulting from favourable sales mix, offset by an adverse foreign currency impact. Full year sales volume was slightly ahead of last year at 2,920 tonnes (FY2012: 2,904 tonnes) following a robust second half performance, with sales volume approximately 10% ahead of the first half year. Group sales volume of 1,528 tonnes for the second half was in line with the strong prior year performance (H2 2012: 1,527 tonnes), with good progress across our industrial and transport markets, offset by lower sales in the electronics market following the non-recurrence of last year's

strong product launch related sales into consumer electronics. The favourable sales mix has been driven by strong sales growth in VPS from our speciality products, dominated by our Aptiv Film business.

 

In our Invibio business, full year revenue was marginally ahead of the prior year at £50.8m (2012: £50.5m). This predominantly reflects steady improvement in sales to the spine market during the second half, with revenue 10% ahead of the first half, as inventory levels in the industry appear to have stabilised. Second half revenue in Invibio was also ahead of the prior year at £26.6m (H2 2012: £25.0m).

 

Full year Group gross margin remained strong at 66.6% (2012: 66.3%) with the favourable sales mix in VPS offset by the impact of adverse currency and, as indicated in previous communications, some increased costs within cost of manufacture impacting the second half. The resulting second half gross margin was 66.0%.

 

We remain cognisant of the challenging economic environment we are currently operating in, but have continued to selectively invest in resources to drive our key growth programmes, including the technical and regulatory functions, with total indirect overheads increasing by 4%. Our investments in technical facilities in the UK and Japan last year have been well received by customers, end users and employees. As well as purchasing our products, our customers and end users want pro-active technical solutions and support, including working with us on joint development programmes, reflecting the long term development and investment periods associated with many of our opportunities for growth. Our commitment to work with our customers on innovative solutions for the challenges they face in their respective industries is reflected in the increased investment in research and development expenditure, of which approximately 85% relates to market and customer related product and application development, which increased to £14.6m this year (2012: £13.1m), representing 7% of revenue (2012: 6%).

 

Resulting Group profit before tax of £94.6m (2012: £94.5m) reflects the robust performance of the business this year and basic earnings per share of 86.5p per share (2012: 85.7p per share) also reflects the expected improvement in the effective tax rate to 22.9% (2012: 23.9%) largely reflecting the lower UK corporation tax rate.

 

Balance sheet

Victrex continues to maintain a strong balance sheet, supporting our ability to invest to drive future growth. Net assets at 30 September 2013 totalled £313.7m (2012: £271.1m). Our working capital management reflects how Victrex continues to differentiate through product leadership and security of supply for both existing and future potential customers and end users.

 

Our inventory levels, whilst reduced from the half year position, have increased slightly year on year to £51.1m (2012: £48.6m). This reflects a number of special grade products produced during the year which we manufacture on a periodic basis together with the slight increase in cost of manufacture noted previously. Trade receivables are in line with the prior year, with receivables which are either current or less than 30 days overdue at 97% (2012: 93%). Trade payables reflect consistent creditor days with the prior year, with our commitment to our suppliers that we pay within agreed terms to maintain a strong working and strategic relationship. Return on capital employed has fallen from 26.5% in 2012 to 23.2% in 2013, following a strategic decision to maintain a strong balance sheet during a period of high capital expenditure.

 

Cash flow

Victrex continues to see strong cash generation and delivered a record performance this year. Cash generated from operations was £100.9m (2012: £89.9m) representing an operating cash conversion of 107% (2012: 96%). Capital expenditure payments significantly increased on the prior year, as we have previously communicated, to £40.7m (2012: £27.0m), mainly as a result of investment in BDF production capacity (the main raw material for PEEK) which is nearing completion and the construction of our third PEEK plant which will underpin our future growth, enabling us and our customers to have confidence that capacity will be in place to support long-term applications.

 

The PEEK plant project remains on plan, for completion during 2015, and budget, £90m, increasing our production capacity from 4,250 tonnes to in excess of 7,000 tonnes.

 

Taxation paid during the year was £21.7m (2012: £24.4m), reflecting the reduction in the UK corporation tax rate, in addition to amounts received relating to the closure of prior year computations by HMRC. Total dividends paid during the year increased to £32.7m (2012: £28.0m) reflecting the increased final dividend for last year and the 15% increase in the interim dividend this year. As a result, the closing Group cash balance as at 30 September 2013 was £91.6m with no debt (2012: £83.9m and no debt).

 

Proposed dividend

Victrex remains committed to a progressive and sustainable dividend policy which takes account of cash generation and use of capital, including for potential acquisitions as well as reflecting our underlying confidence in the growth programmes and prospects for our business, despite the wider economic challenges. Following an increase in the interim dividend by 15% to 10.35p (H1 2012: 9.0p), the Group is proposing an increase of 15% in the final dividend to 32.65p (2012: 28.4p), resulting in a full year dividend increase of 15% to 43.0p (2012: 37.4p) per ordinary share. Dividend cover is 2.0 times (2012: 2.3 times).

 

 

Victrex Polymer Solutions

 

 

 

Victrex Polymer Solutions (VPS)

 

2013

2012

Change


£m

£m

%

Revenue

171.1

169.3

1%

Gross profit

103.1

101.1

2%

Operating profit

68.6

68.5

0%

 

VPS generated revenue slightly ahead of the prior year of £171.1m (2012: £169.3m) reflecting a higher average selling price driven by product mix and continued success in our speciality products business. Gross margin improved to 60.3% (2012: 59.7%). Sales, marketing and administrative expenses increased by £1.9m to £34.5m (2012: £32.6m) with continued investment to develop our organisational infrastructure and capabilities to drive our future growth initiatives. The resulting operating profit of £68.6m remained in line with the previous year (2012: £68.5m).

 

Core market overview

Sales volume in Europe of 1,637 tonnes was 12% ahead of the prior year (2012: 1,457 tonnes) driven by significant growth in all key markets. The second half was particularly strong with record sales volume of 870 tonnes being 13% ahead of the first half (767 tonnes). In the US, sales volumes of 770 tonnes was 17% below the prior year (2012: 926 tonnes) with the trend towards shorter product life cycles in mobile devices and electronics leading to increased volatility in demand for applications and slightly softer sales in the oil and gas sector. Second half sales volume of 382 tonnes was broadly in line with the first half (388 tonnes). In Asia, sales volume of 513 tonnes was broadly in line with the prior year (521 tonnes) with strong growth in industrial and transport applications offset by slower sales into semiconductor applications. Year on year sales volume outside of Japan grew by 12% and represents more than half of our sales in the region. Second half sales volume of 276 tonnes was 16% ahead of the first half (237 tonnes) with an encouraging recovery in Japan.

 

Industrial sales volume at 1,125 tonnes was broadly in line with 2012, with increased demand for industrial machinery and equipment offset by lower sales into the oil and gas sector, largely in the US, due to slightly reduced drilling activity. Second half sales volume of 601 tonnes was 15% ahead of the first half (524 tonnes) principally driven by industrial machinery and equipment.

 

Transport sales volume increased 7% to 799 tonnes (2012: 744 tonnes) with strong sales into automotive and aerospace. The increase in automotive sales reflects the trend towards highly durable and weight saving materials. We also saw continued success from new applications in aerospace. Second half sales volume of 419 tonnes was 10% ahead of the first half (380 tonnes).

 

Electronics sales decreased 12% to 628 tonnes (2012: 714 tonnes) due to a slower year in semiconductor sales and increased volatility in consumer electronics applications. Second half sales volume of 316 tonnes remained broadly in line with the first half (312 tonnes).

 

Product and market development

We continue to move downstream, launching new product solutions where an opportunity exists to accelerate growth, access new markets or improve margins. Our speciality products business, driven predominantly by our Aptiv Film business used in many acoustic applications, delivered another good performance this year. Our other existing speciality product platforms are coating, pipes and composites. We continue to explore organic and non-organic platforms for future investment, which will broaden our portfolio and capture the high value in this area. 2013 saw further success in closing new applications across all our markets as the megatrends of lightweighting for fuel efficiency, miniaturisation and complexity of natural resource exploration, play to the strengths of our products.

 

The development pipeline remains strong and diverse, with new opportunities being identified and driven across all our markets. With our portfolio management approach, we are driving a more value focused view on our development pipeline, rather than just the volume of opportunities. At the 30 September 2013 it contained 1,600 potential developments (30 September 2012: 1,908) with an estimated Mature Annualised Volume (MAV) of 2,064 tonnes (30 September 2012: 2,212 tonnes) if all of the developments were successfully commercialised.

 

Growth drivers

Our industries continue to be challenged to achieve higher performance with less; less material, less energy, less waste, less noise, less time, less cost. This drives the need for innovative designs using our materials and expertise to bring them to market. The unique combination of properties and physical forms of Victrex materials help customers deliver against these challenges. We continue to see good growth potential for our business, reflected by our strong development pipeline, as well as opportunities to target further market penetration or geographies through strategic marketing. Alongside this, continued investment in talent, technology and new capacity means that we are well placed to take advantage of growth opportunities - whether organic or through non-organic means - in delivering solutions to our customers and markets. New materials, new applications, new forms and new geographies will all play a part in our future growth.

 

 

 

Invibio Biomaterial Solutions

 

 

 

Invibio

2013

2012

Change


£m

£m

%

Revenue

50.8

50.5

1%

Gross profit

44.7

44.6

0%

Operating profit

29.3

29.2

0%

 

 

Invibio generated revenue of £50.8m, an increase of 1% over 2012 (£50.5m). This reflected a steady recovery in our spine business (3% up on 2012) during the second half year, following the effects of destocking and lower inventory levels amongst our customers during the first half year. Gross margins remained strong at 88.0% (2012: 88.3%). Sales, marketing and administrative expenses remained in line with prior year at £15.4m, resulting in an operating profit of £29.3m (2012: £29.2m).

 

Core market overview

The spine market generated sales of £39.3m, an increase of £1.1m (3%) on the prior year. This recovery was fuelled by sales improvement in the second half of the year due to a combination of continued global expansion and recovery following the de-stocking that impacted our business in the second half of 2012 and the first half of 2013. Emerging markets continue to be attractive for us, particularly China in Dental and other emerging opportunities. Our growth strategy in Asia continues, with revenues up 14% to £4.1m (2012: £3.6m). Our developing markets outside of spine reduced by 7% in 2013, principally as a result of the arthroscopy market where despite the demand for more radical solutions, several commercial opportunities have yet to be delivered.

 

Product and market development

Healthcare remains high up the news agenda and we expect it to remain so. One key area of focus in recent years has been the quality of materials and devices used to treat patients. Our priority at Invibio has always been and will continue to be about safe, consistent and high quality biomaterials for our customers and for patients. We focus on growth opportunities around three horizons - 1, 2 and 3. Short term, medium term and long term.

 

Invibio is the proven market leader in providing versatile and high performance PEEK based polymer solutions to the medical device market. With a strong track record and unrivalled expertise, our materials are used extensively across a number of core applications such as spinal fusion and arthroscopy, as well as in the newer and emerging opportunities such as dental, trauma and knee.

 

Spine

Long term incremental growth in the spine market remains attractive, despite the relative maturity of 'core' spine and sales volumes being impacted through de-stocking of inventories by many medical device companies last year. Spinal implant procedures are forecast to grow in the years ahead, reflecting an ageing population and the need for innovative materials.

 

Geographical Focus

In some geographies, spine remains a developing market and with our strong regulatory knowledge and expertise, there is an increased pace of regulatory approvals for 'newer' spinal applications. Given that the application of PEEK-OPTIMA®  HA-ENHANCED is new to surgeons in these new geographies, we have focused on education programmes in collaboration with our customers and with European Spine surgeons, reaching more than 1500 surgeons in China alone in the last year.

 

Emerging markets

In recent years, well publicised issues with metal on metal applications, for example in large diameter hip implants, have made news around the world. Growing safety concerns and regulatory scrutiny present both challenges and opportunities for Invibio. Our activities in emerging markets this year were driven by JUVORA, our dedicated dental brand, which offers a certified dental disc, providing our customers and their patients with an effective metal free dentures solution, with improved comfort and fit. During the year, we started to gain traction for our JUVORA brand across geographies, with over 30 agreements

in place with customers and over 60 labs passing through our certified training programme. The trends for the denture market are extremely encouraging and we believe that the JUVORA product is well positioned to be the material of choice for a significant patient population that could reach as many as 1.5 million denture applications per year.

 

Beyond our existing application portfolio, we have a strong pipeline of opportunities which we continue to focus on, using our regulatory expertise, market insight and technology leadership, to ensure we can capture real value from these markets including trauma (Horizon 2) and knee (Horizon 3), where our materials can deliver superior performance and accelerate healing, as well as offering durability and less complexity than many incumbent solutions. We also believe that in certain markets - Knee for example - the demand for more radical solutions offers us real opportunities.

 

People

Victrex was named amongst the top 20 Most Admired Companies in the UK by Management Today this year and we celebrated 20 successful years in 2013. As we move further downstream to drive growth and profitability using a market led approach, we have continued to invest in new talent. Victrex relies heavily on the skills, experience and competence of our people to drive business development in our existing and new markets, as well as operating our assets safely and with a strong regard to the environment.

 

On behalf of the Board, I would like to pay tribute to all our employees and thank them for their contribution this year, amidst an uncertain economic environment. This passion, innovation and performance of our employees remains a key asset for Victrex and its success into the future.

 

Outlook

Whilst it remains early in our new financial year, our momentum from the second half of 2013 has continued, with good underlying growth in VPS and recovery in Invibio. Although we remain mindful of the wider macro-economic environment, we are encouraged by the potential across our business.

 

Anita Frew

Chairman

10 December 2013

 

 

 

CONSOLIDATED INCOME STATEMENT




for the year ended 30 September


2013

2012


Note

£m

£m

Revenue

2

221.9

219.8


(74.1)

(74.1)

Gross profit


147.8

145.7


(53.8)

(51.7)

Operating profit

2

94.0

94.0


0.8

0.6


(0.2)

(0.1)

Profit before tax


94.6

94.5


(21.7)

(22.6)

Profit for the year attributable to owners of the parent


72.9

71.9

Earnings per share




 

3

86.5p

85.7p

3

86.0p

85.1p

Dividend per ordinary share





Interim


10.35p

9.0p

Final


32.65p

28.4p



43.0p

37.4p

 

A final dividend in respect of 2013 of 32.65p has been recommended by the Directors for approval at the Annual General Meeting in February 2014.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME




for the year ended 30 September 


2013

2012



£m

£m

Profit for the year 


72.9

71.9

Items that will not be reclassified to profit or loss




Defined benefit pension schemes' actuarial (losses)/gains


(0.7)

1.3

Income tax on items that will not be reclassified to profit or loss


0.1

(0.3)



(0.6)

1.0

Items that may be reclassified subsequently to profit or loss




Currency translation differences for foreign operations


(0.5)

(1.0)

Effective portion of changes in fair value of cash flow hedges


1.1

7.0

Net change in fair value of cash flow hedges transferred to profit or loss


0.4

(2.1)

Income tax on items that may be reclassified to profit or loss


(0.6)

(2.2)



0.4

1.7

Total other comprehensive (expense)/income for the year


(0.2)

2.7

Total comprehensive income for the year attributable to owners of the parent 


72.7

74.6

 

 

 

 

CONSOLIDATED BALANCE SHEET

 



as at 30 September

2013

2012


£m

£m

Assets



Non-current assets



Property, plant and equipment

175.7

143.6

Intangible assets

10.1

10.1

Deferred tax assets

6.3

7.1


192.1

160.8

Current assets



Inventories

51.1

48.6

Current income tax assets

1.2

1.6

Trade and other receivables

26.5

26.8

Derivative financial instruments

5.1

4.0

Cash and cash equivalents

91.6

83.9


175.5

164.9

Total assets

367.6

325.7

Liabilities



Non-current liabilities



Deferred tax liabilities

(15.6)

(14.0)

Retirement benefit obligations

(3.6)

 

(4.0)

 


(19.2)

(18.0)

Current liabilities



Derivative financial instruments

(0.4)

(0.3)

Current income tax liabilities

(10.7)

(13.0)

Trade and other payables

(23.6)

(23.3)


(34.7)

(36.6)

Total liabilities

(53.9)

(54.6)

Net assets

313.7

271.1

Equity



Share capital

0.8

0.8

Share premium

31.3

29.1

Translation reserve

1.5

2.0

Hedging reserve

3.3

2.1

Retained earnings

276.8

237.1

Total equity attributable to owners of the parent

313.7

271.1

 

These financial statements of Victrex plc, registered number 2793780, were approved by the Board of Directors on 9 December 2013 and were signed on its behalf by:

 

 

 

 

D R Hummel                              A S Barrow

Chief Executive                           Finance Director

 

 

 

 

 

CONSOLIDATED CASH FLOW STATEMENT

 




for the year ended 30 September


2013

2012


£m

£m

Profit after tax for the year

 


72.9

71.9 

Income tax expense


21.7

22.6

Net financing income


(0.6)

(0.5)

Dividends received from subsidiaries


-

-

Operating profit


94.0

94.0

Adjustments for:




Depreciation


9.5

9.6

Loss on disposal of non-current assets


0.3

-

Increase in inventories


(3.6)

(4.3)

Decrease/(increase) in trade and other receivables


1.3

(2.6)

Decrease in trade and other payables


(1.3)

(6.5)

Equity-settled share-based payment transactions


1.3

1.7

Changes in fair value of derivative financial instruments


0.5

(1.1)


(1.1)

(0.9)

Cash generated from operations


100.9

89.9


0.8

0.5


(21.7)

(24.4)

Net cash flow from operating activities


80.0

66.0

Cash flows from investing activities





(40.7)

(27.0)


-

-

Net cash flow from investing activities


(40.7)

(27.0)

Cash flows from financing activities





2.2

2.0


(0.9)

(0.8)


(32.7)

(28.0)

Net cash flow from financing activities


(31.4)

(26.8)

Net increase in cash and cash equivalents


7.9

12.2


(0.2)

(0.6)


83.9

72.3

Cash and cash equivalents at end of year


91.6

83.9

 

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

Share

Share

Translation

Hedging

Retained


capital

premium

reserve

reserve

earnings

Total

£m

£m

£m

£m

£m

£m

Equity at 1 October 2011

0.8

27.1

3.0

(1.6)

192.3

221.6

Total comprehensive income for the year







-

-

-

-

71.9

71.9

Other comprehensive income







-

-

(1.0)

-

-

(1.0)

-

-

-

7.0

-

7.0

Net change in fair value of cash flow hedges                 transferred to profit or loss

-

-

-

(2.1)

-

(2.1)

-

-

-

-

1.3

1.3

Tax on other comprehensive income

-

-

-

(1.2)

(1.3)

(2.5)

Total other comprehensive income for the year 

-

-

(1.0)

3.7

-

2.7

Total comprehensive income for the year 

-

-

(1.0)

3.7

71.9

74.6

Contributions by and distributions to owners of                 the Company







-

2.0

-

-

-

2.0

-

-

-

-

1.7

1.7

-

-

-

-

(0.8)

(0.8)

-

-

-

-

(28.0)

(28.0)

Equity at 30 September 2012

0.8

29.1

2.0

2.1

237.1

271.1

Total comprehensive income for the year







-

-

-

-

72.9

72.9

Other comprehensive income   







-

-

(0.5)

-

-

(0.5)

-

-

-

1.1

-

1.1

Net change in fair value of cash flow hedges                 transferred to profit or loss

-

-

-

0.4

-

0.4

-

-

-

-

(0.7)

(0.7)

-

-

-

(0.3)

(0.2)

(0.5)

Total other comprehensive income for the year 

-

-

(0.5)

1.2

(0.9)

(0.2)

Total comprehensive income for the year 

-

-

(0.5)

1.2

72.0

72.7

Contributions by and distributions to owners of                 the Company







-

2.2

-

-

-

2.2

-

-

-

-

1.3

1.3

-

-

-

-

(0.9)

(0.9)

-

-

-

-

(32.7)

(32.7)

Equity at 30 September 2013

0.8

31.3

1.5

3.3

276.8

313.7

 

NOTES TO THE FINANCIAL STATEMENTS

1. Financial statements and 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 except for the application of relevant new standards. A number of new standards and amendments to existing standards were effective for the financial year ended 30 September 2013. None of these have had a material impact. 

A number of standards, amendments and interpretations have been issued and endorsed by the EU, but which are not yet effective and accordingly the Group has not yet adopted. The cumulative impact of the adoption of these standards is not expected to be significant.

The financial information presented does not comprise the statutory financial statements within the meaning of the Companies Act 2006. The results for the year ended 30 September 2013 have been extracted from the statutory financial statements for that period. The auditor has given an unqualified report on the the statutory financial statements for the year. The results for the year ended 30 September 2012 have been extracted from the statutory financial statements s for that year, which have been delivered to the Registrar of Companies; the audit opinion on those financial statements was unqualified.

Sections of this results statement contain forward-looking statements, including statements relating to: future demand and markets for the Group's products and services; research and development relating to new products and services and liquidity and capital resources. These forward-looking statements involve risks and uncertainties because they relate to events that may or may not occur in the future. Accordingly, actual results may differ materially from anticipated results because of a variety of risk factors which are summarised in note 6.

The accounts for the year ended 30 September 2013 will be posted to shareholders on 2 January 2014 and will be available from the Company's Registered Office at Victrex Technology Centre, Hillhouse International, Thornton Cleveleys, Lancashire, FY5 4QD, United Kingdom.

2. Segment reporting

The Group complies with IFRS 8 - Operating Segments which requires operating segments to be identified and reported upon that are consistent with the level at which results are regularly reviewed by the entity's chief operating decision maker. The chief operating decision maker for the Group is the Victrex plc Board. Information on the business units is the primary basis of information reported to the Victrex plc Board. The performance of the business units is assessed based on segmental operating profit.

The Group's business is strategically organised as two business units: Victrex Polymer Solutions, which focuses on our automotive, aerospace, electronics and energy markets and Invibio Biomaterial Solutions, which focuses on providing specialist solutions for medical device manufacturers.

 

 

Victrex Polymer

Solutions

2013

Invibio

Biomaterial

Solutions

2013

 

 

Group

2013

Victrex Polymer

Solutions

2012

Invibio

Biomaterial

Solutions

2012

 

 

Group

2012


£m

£m

£m

£m

£m

£m

Revenue from external sales

171.1

50.8

221.9

169.3

50.5

219.8

Segment operating profit

68.6

29.3

97.9

68.5

29.2

97.7

Unallocated central costs



(3.9)



(3.7)

Operating profit



94.0



94.0

Net financing income



0.6



0.5

Profit before tax



94.6



94.5

Income tax expense



(21.7)



(22.6)

Profit for the year attributable to owners of the parent



72.9



71.9

Other information







Depreciation

9.1

0.4

9.5

9.2

0.4

9.6

 

Information about products

The Group derives its revenue from the sale of high performance thermoplastic polymers.

Information about geographical areas

 

3. Earnings per share



2013

2012

Earnings per share

- basic


86.5p

85.7p


- diluted


86.0p

85.1p

Profit for the financial year


£72.9m

£71.9m

Weighted average number of shares used:




- Issued ordinary shares at beginning of year


84,481,476

84,033,879

- Effect of own shares held


(366,222)

(395,783)

- Effect of shares issued during the year


179,127

220,687

Basic weighted average number of shares


84,294,381

83,858,783

Effect of share options


432,600

635,424

Diluted weighted average number of shares


84,726,981

84,494,207

4. Exchange rates

2013

2012


Average

Closing

Average

Closing

US Dollar

1.57

1.62

1.59

1.61

Euro

1.21

1.20

1.17

1.26

Yen

128

159

126

126

 

5. Dividend and Annual General Meeting

The proposed final dividend will be paid on 21 February 2014 to all shareholders on the register on 7 February 2014. The Annual General Meeting of the Company will be held at 11am on 4 February 2014, at the Andaz Hotel, Liverpool Street, London, EC2M 7QN.

 

6. Risks, trends, factors and uncertainties

Victrex's business and share price may be affected by a number of risks, trends, factors and uncertainties, not all of which are in our control. 

Accordingly, actual results may differ materially from anticipated results because of a variety of risk factors, including: changes in exchange rates; changes in global, political, economic, business, competitive and market forces; changes in raw material pricing and availability; changes to legislation and tax rates; future business combinations or disposals; relations with customers and customer credit risk; events affecting international security, including global health issues and terrorism; changes in regulatory environment and the outcome of litigation.

 

FINANCIAL CALENDAR

Annual General Meeting                                                     4 February 2014

Ex dividend date                                                                   5 February 2014

Record date*                                                                         7 February 2014

Payment of final dividend                                                   21 February 2014

Announcement of 2013 half-yearly results                    May 2014

Payment of interim dividend                                              July 2014

 

* The date by which shareholders must be recorded on the share register to receive the dividend.

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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