Victrex plc (LON:VCT) said trading has remained in line with expectations so far this year despite the coronavirus pandemic, with the polymers maker supplying many critical manufacturers, including in the medical sector.
The chemicals sector has been defined as an essential industry with essential workers by the UK government, while also being a 'life-sustaining' organisation in several US states, though the group’s non-production-related workers around the world are working from home.
Growth in sales volumes were “solid” in the first half of FTSE 250 the group’s financial year, including a “strong finish in March” - a turnaround from what was a troubled 2019 when the company issued two profit warnings after the collapse of large consumer electronics contract.
While there has been some weakness in energy end markets, Victrex said it has enjoyed good growth in automotive and medical, including supplying materials for ventilators or related equipment, with stable performance in other markets, with “appropriate” raw material inventory and the supply chain “functioning well”.
Measures have been put in place to reduce cost and conserve cash that stood at a net £42.2mln at the end of March, after a much-reduced dividend having been paid in February. There were also borrowing facilities of £40mln.
Victrex said the third quarter “has shown early signs of a solid start, including some normal demand returning across parts of Asia”.
But as the effects of coronavirus on the macroeconomic outlook over the coming months is so uncertain, it was “too early to provide guidance for the remainder of the current financial year”.