Trading Statement

RNS Number : 8822N

Victrex PLC

04 October 2012

 



For Stock Exchange Release at 7.00 a.m. Thursday 4 October 2012

Victrex plc

Year End Trading Statement and Board Appointment

Trading update for the year ended 30 September 2012

We are pleased to report that the positive trend in Group sales volume has continued with second half volume 7% ahead of the same period last year at 1,527 tonnes (H2 2011: 1,426 tonnes). This reflects strong new business commercialisation in our Victrex Polymer Solutions business ('VPS'). Full year volume increased to a new record of 2,904 tonnes (2011: 2,860 tonnes).

Full year revenue in our Invibio^® Biomaterial Solutions business ('Invibio') was £50.5m (2011: £49.7m). Sales into the spine market were broadly in line with the prior year reflecting destocking at a select number of customers over the summer in response to the continued uncertainty in the US medical device industry. Revenue from our developing markets outside of spine grew by 11%, predominantly in arthroscopy.

Investment in capacity for growth

As we work with our customers and end users to create new opportunities for growth, demonstrating our ability to fulfil increased demand is critical. We are therefore pleased to confirm that we have commenced construction of a third PEEK plant on our Hillhouse site in Lancashire. This will increase our annual capacity by 2,900 tonnes to in excess of 7,000 tonnes. The total capital cost, including all related utility systems and infrastructure, is expected to be £90m which will be funded out of operating cash flow. The new plant is expected to be operational in early 2015.

Board appointment and management change

Tim Cooper, Managing Director of VPS, has been appointed as an Executive Director of the plc Board. Under Tim's leadership, VPS has made significant progress and he has provided valuable support to the plc Board since joining the business.

There are no other details to disclose under paragraph 9.6.13 of the Listing Rules in relation to Tim Cooper.

Hichem M'Saad, Managing Director of Invibio, has resigned for personal reasons. David Hummel, Chief Executive, will lead the Invibio Management Team to drive growth and further develop strategy for our established and targeted markets.

Outlook

The initial sales volume order book for October is encouraging. Whilst we are cognisant of the uncertain economic environment, our confidence in the growth potential for our business through the development of new applications and markets remains strong.

Victrex will announce its results for the year ended 30 September 2012 on Tuesday 11 December 2012.

Victrex will host a conference call at 8.30am today for analysts. If you would like more details, please call Rosa Smith at MHPC on 0203 128 8560 or email on [e-mail] 

Enquiries

Victrex plc                                          David Hummel, Chief Executive Steve Barrow, Finance Director	01253 898067
MHP Communications                     Nick Denton / Barnaby Fry / Ian Payne	0203 128 8100

Victrex plc is an innovative world leader in high performance materials through the manufacture of VICTREX^® PEEK polymer, a high performance, easy to process thermoplastic.

With over 30 years of experience, Victrex is a global manufacturer of innovative, high performance thermoplastic polymers. We work with customers and end users to deliver technology driven solutions to the challenges and opportunities they face. Our VPS business focuses on our transport, industrial and electronics markets and our Invibio business focuses on providing specialist solutions for medical device manufacturers.

 

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