Victrex increases its 2014 FY dividend by 5% and pays special dividend

DividendMax Ltd.

Victrex increases its 2014 FY dividend by 5% and pays special dividend

Highlights:

• Continued momentum across our markets: Revenue up 14%, PBT up 9%

-  Strong performance across VPS with 17% growth in higher margin Speciality Products

- Invibio returned to growth driven by Spine

- New Consumer Electronics business: further volumes for H1 15 and platform to future opportunities 

• Cost of manufacture improvement in H2

- Continued focus on efficiency in 2015

• Major capacity investments nearing completion

- New PEEK and Aptiv film capacity to support larger commercial opportunities

• Special dividend of 50p/share underpinned by strong cash generation and balance sheet

- 50p/share special dividend (£43m payout), alongside 33.76p final dividend, regular dividend cover 2.1x

- FY14 net cash £89.6m despite record capital expenditure

David Hummel, Chief Executive of Victrex, said: "Victrex delivered a strong performance in 2014, which reflects our focused growth strategy. We outperformed in our Victrex Polymer Solutions (VPS) business during the first half, secured new business in Consumer Electronics during the second half and recorded good growth in our higher margin Invibio and Speciality Products businesses.

"We are pleased to be announcing a proposed special dividend of 50 pence per share, in addition to a final dividend of 33.76p. This reflects our strong cash position, even after the significant capital investment in new manufacturing capacity, alongside our robust financial position. It also reinforces our continued confidence in the future prospects for our business.

"Looking forward, our new PEEK and Aptiv film capacity investments will put Victrex in a good position to capture more impactful and value creating business over the coming years. Our 2015 financial year has started well and although currency headwinds remain considerable, we now anticipate being able to fully cover the FX impact, reflecting our positive trading momentum and more recent exchange rates. With a continued focus on growth and efficiency, Victrex remains well placed for the year ahead."

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