Victrex PLC AGM Statement (2728W)
08 February 2017 - 6:00PM
UK Regulatory
TIDMVCT
RNS Number : 2728W
Victrex PLC
08 February 2017
8 February 2017
Victrex plc
AGM and Q1 Interim Management Statement
'A solid start to 2017 - strong growth in core business'
Victrex plc, an innovative world leader in high performance
polymer solutions, today releases its first quarter (Q1) Interim
Management Statement ahead of its Annual General Meeting (AGM)
being held today.
Victrex made a solid start to 2017, with a strong performance in
the core business compared to a weak Q1 2016. Q1 2017 sales volumes
in the core business (excluding Consumer Electronics) were 25%
ahead of the prior year quarter, reflecting growth across
Automotive, Aerospace, Energy & Industrial and Value Adding
Resellers. Electronics, outside of the large Consumer Electronics
order, also saw growth. Q1 2017 performance was offset by Medical,
which was behind last year, principally due to phasing.
Overall, Q1 2017 Group revenue of GBP55.7m was broadly in line
with the prior year (Q1 2016: GBP56.0m), with Q1 2017 Group volumes
of 810 tonnes down 6% (Q1 2016: 860 tonnes). Q1 2017 performance
reflected, as expected, the very limited volumes from the large
Consumer Electronics order, compared to much stronger volumes in
the prior year.
Victrex retains a highly cash generative business model, with no
significant changes to its financial position since 30 September
2016.
Joint-venture to accelerate Aerospace Loaded Brackets
mega-programme
Victrex is also announcing today that it is investing to help
accelerate its Aerospace Loaded Brackets mega-programme, via a
joint-venture with Tri-Mack Plastics, a proven partner for
manufacturing semi-finished and finished parts within
Aerospace.
The joint-venture, TxV Aerospace Composites, will focus on
developing a new supply chain, with the capability to manufacture,
at scale, unique and differentiated Loaded Brackets, blending new
PEEK and PAEK polymer grades and composite materials. Victrex will
have the majority share of the JV and total capital expenditure
from Victrex is anticipated to be around GBP10m, spread over the
next three years.
The Aerospace Loaded Brackets programme will utilise a
differentiated and protectable solution, with an "over-moulded"
bracket offering up to 60% weight saving compared to metals, as
well as quicker manufacturing. This solution has multiple
application opportunities, particularly within aircraft interiors.
Following pre-qualification of this semi-finished product with
major customers and initial prototype revenue during 2016, a new
manufacturing facility in the US will offer the potential to
capture significant growth opportunities. Industry projections
suggest thermoplastic composites in Aerospace could increase to
over 5000 tonnes by 2025-30, compared to the current 2000 tonnes
(source: Composites World).
David Hummel, Chief Executive of Victrex, said: "This is an
exciting acceleration opportunity which builds on our Kleiss and
Magma investments and is in line with the Group's strategy to move
further downstream into selected and differentiated semi-finished
products.
"We will continue to pursue acceleration options across several
of our mega-programmes, whether organically, through partnership or
acquisition. Further strengthening and accelerating our growth
pipeline remains a key priority for Victrex."
Outlook
At this early stage of the year and with our core business in
growth, a continued focus on cost efficiency and a favourable
currency environment, we remain comfortable with expectations for
2017.
Victrex will provide an update on its strategy and growth
pipeline - 'Polymer to parts' - at a Capital Markets Day in London
on Tuesday 28(th) March 2017.
Enquiries:
Victrex plc:
Andrew Hanson, Head of Investor Relations & Communications +44 (0) 7809 595831
Louisa Burdett, Group Finance Director +44 (0) 1253 897700
David Hummel, Chief Executive +44 (0) 1253 897700
Teneo Blue Rubicon:
Charles Armitstead +44 (0) 203 603 5220
About Victrex:
Victrex is an innovative world leader in high performance
polymer solutions, focused on the strategic markets of Automotive,
Aerospace, Energy, Electronics and Medical. 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 35 years' experience, we
are moving beyond the polymer into semi-finished and finished
products which shape future performance for our customers and our
markets, and drive value for our shareholders. Find out more at
www.victrexplc.com
Analyst and investor call:
A conference call for analysts and investors will be held this
morning at 08.30am GMT. Please contact Kate Heighes at Teneo Blue
Rubicon for details on +44 (0) 203 757 9244 or
kate.heighes@teneobluerubicon.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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