Shares in Victrex PLC (LSE:VCT), the polymer manufacturer, dropped 4% to 669p on Friday after its latest trading update confirmed a slow start to the financial year but held full-year guidance.
In the first quarter, sales volumes dipped 4% to 858 tonnes, while revenue fell 6% to £62.4 million. That reflects softness in Transport, Medical and value-added resellers, though Energy and Industrial markets saw growth. Average selling prices held steady year-on-year at around £73 per kilogram.
Peel Hunt, which rates the stock a 'buy' with a 775p target price, described the performance as expected and said trading had begun “solidly” in the second quarter. Year-to-date volumes are now in line with last year, with revenue slightly behind.
The broker sees 2026 as a transition period, with macro conditions unlikely to improve significantly. It expects new chief executive James Routh to push ahead with the group’s Profit Improvement Plan, which aims to cut at least £10 million in costs, with benefits anticipated in 2027 and beyond.
Peel Hunt forecasts 3% revenue growth and adjusted pre-tax profit of £48 million for the full year, with the company maintaining its view of a second-half weighting due to seasonality and currency effects.