Victrex PLC (LSE:VCT) shares fell 10% to 704p on Tuesday morning as the polymer specialist revealed that chief executive Jakob Sigurdsson is stepping down after almost eight years in the role.
The FTSE 250-listed group also reported results for the third quarter of its financial year, showing weaker sales volumes and further decline in sellling prices led to a 3% fall in revenue to £71.5 million.
Sales into the medical sector were lower than expected, especially polymer products for spinal implants.
Most growth was seen in the Sustainable Solutions and Energy & Industrial compared to the prior year, while aerospace and automotive volumes were stable against tougher comparatives, with electronics ahead year-to-date.
"The group is well positioned to deliver at least high single digit volume growth for the full year, in line with guidance, although the remainder of FY 2025 sees a tougher comparative and we are mindful of ongoing macroeconomic uncertainty," said Sigurdsson.
Profits will reflect the impact of an "adverse sales mix in both divisions, a weaker Medical performance and the headwinds from our new China manufacturing facility, as well as a circa £9m currency headwind", he said.
He said the target is for second half underlying PBT to be slightly improved on the first half's £23.2 million, but if the trends in the past quarter were seen in the remainder of the year, second half profits would be flat.
The board has appointed Dr James Routh, currently boss of AB Dynamics PLC (AIM:ABDP), as Sigurdsson's replacement.
While Routh has signed a service contract, a definitive start date is yet to be agreed and will be announced once finalised. Separately, AB Dynamics said Routh has a 12-month notice period and is expected to stay in post until a successor is appointed.
Chair Vivienne Cox said Routh "brings a wealth of significant leadership experience from international manufacturing and engineering based businesses, all of which are directly aligned to Victrex's end-markets".