Victrex PLC AGM Statement (2728W)

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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           [phone] 

Louisa Burdett, Group Finance Director [phone]

David Hummel, Chief Executive [phone]

Teneo Blue Rubicon:

Charles Armitstead [phone]

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 [phone] or [e-mail]

This information is provided by RNS

The company news service from the London Stock Exchange

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February 08, 2017 02:00 ET (07:00 GMT)