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The Markets
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Hardware & electrical equipment

Victrex once again dampens down expectations

Victrex saw a much weaker first half, driven principally by its automotive arm

Shares in Victrex PLC (LON:VCT) fell back after the polymers specialist issued another profit warning.

The shares dropped 3.6% to 2,140p after the company released results covering the six months to the end of March.

The market was not expecting much from these results, as the company had alerted the market in February to a much weaker first-half performance after sales slumped in the first quarter.

READ Victrex warns of “much weaker” first half as it gets off to a slow start

Half-year revenue tumbled to £145.7mln from £166.6mln the year before while profit before tax slipped to £50.2mln from £63.3mln.

The interim dividend was held at 13.42p.

Turning to current trading, the company, which makes everything from plastic pipes to spinal implants, said it will now be challenging to achieve year-on-year growth in the second half, compared to the prior year period.

Plastics and the technologies surrounding them have come a long way since their first discovery and subsequent development. Innovation never stops – here is reasons why: https://t.co/uZmJloAMtD #40yearsofPEEK #Victrex #Innovation #polymer #technology #blog #pioneering pic.twitter.com/3luObMbgMC

Victrex (@Victrexplc) May 13, 2019

“We remain well placed for the medium to long term, with strong structural growth opportunities, a healthy new product pipeline and a highly cash generative business model," said Jakob Sigurdsson, the chief executive officer of Victrex.

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