Victrex PLC (LON:VCT) delivered strong 2017 results and analysts expect another top performance in the first quarter.
The FTSE 250 listed provider of specialist polymer products publishes its interims on Friday and investors will be keen to see whether it has kept up the momentum after robust profit growth last year.
Liberum estimates revenues will rise 40% to £78mln in the first quarter with volumes up 13%.
Core trading its likely to remain strong thanks to strong trading in electronics, energy and auto, the broker added.
The company's thermoplastic polymers (or plastics, put more simply) are used in smartphones, aeroplanes, cars, oil and gas platforms and medical devices.
In its last update in December, Victrex reported an 11% rise in pre-tax profit to £111.0mln for the 12 months to September 30, as group revenue rose by 15% to £290.2mln.
The results were boosted by favourable currency movements and Liberum expects this to also benefit 2018 underlying earnings (EBIT).
“On a marked to market basis we estimate foreign exchange impacts on EBIT of +£12m for 2018 and -£11m for 2019 which means the pre-tax profit consensus forecast of £127mln in 2019 is achievable with about 7% constant currency EBIT growth per annum,” said Liberum analyst Adam Collins.
At its full year results, chief executive Jakob Sigurdsson signalled his confidence in the outlook for the company by saying it has a strong pipeline of new products that are on track to deliver 10-20% of sales in the medium term.
S & U continues to shrug off slowdown in car sales
Niche lender S & U Plc (LON:SUS) reports its trading update with all eyes on its motor finance arm and bridging finance pilot operation.
Despite recent data showing a drop in car sales, the company’s motor finance division, Advantage Finance, has shown no signs of slowing down.
In the three months to December 6, the number of active customers increased to 53,000 from 49,000 at the end of July and net customer receivables rose above £240mln for the first time – up from nearly £227mln in July.
Meanwhile, the Aspen bridging finance pilot operation has also been gaining traction since its launch in early 2017, increasing its loan book to £9mln in December from £2mln in July.
S& U has said it expects Aspen to achieve a successful trial period, which ends in the second half of 2018.
UK economic data
Away from corporate results, official UK data on trade and manufacturing, industrial and construction output will be in focus.
Economists predict a 1.2% year-on-year increase manufacturing production in December. Industrial output is expected to grow 0.4% while construction production is forecast to drop 1.9%.
The UK trade deficit is expected to narrow to £2.4bn from £2.8bn in November.
Significant announcements due:
Trading update: Victrex PLC (Q1) (LON:VCT)
Economic data: UK trade data; UK industrial, manufacturing production; UK construction output; US wholesale inventories