Highlights:
• Balanced portfolio driving growth
- Revenue up 4%, PBT up 4%, fully overcoming £7m FX, Oil & Gas and Medical headwinds
- Double-digit growth in constant currency (8% revenue growth; 10% PBT growth)
- Good performance in VPS; Invibio impacted by US Spine market consolidation
• Strong pipeline; growth programmes on track
- Continued opportunities in Consumer Electronics
- HA-Enhanced (Spine) adoption on plan
- Magma Oil & Gas mega-programme approaching meaningful revenue in 2016
- Kleiss Gears acquisition to support Automotive growth
• New capacity fully on-stream; further downstream investment
- 7,000 tonne PEEK manufacturing capacity underpins future growth
- New downstream investments in FY16 to support mega-programmes:
PEEK tape (Magma and Aerospace) and Trauma (Medical) manufacturing
Investments fall within capex guidance (c£25m-£35m pa)
• New capital allocation framework; opportunity for enhanced returns
- Growth investment remains top priority
- Approximately 50% of net cash returned in future as special dividend (subject to investment requirements):
50p/share de minimis; retain medium-term net cash position
- Progressive regular dividend; retain cover around 2x
- FY15 total dividend growth of 4%, with final dividend of 35.09p (FY14: 33.76p)
David Hummel, Chief Executive of Victrex, said: "2015 was a good year overall for Victrex, where our strong and balanced portfolio helped to drive growth, fully overcoming the significant headwinds we faced from foreign currency, weaker Oil & Gas and US medical industry consolidation.
"Our development pipeline is strong and continues to offer significant long term potential, alongside our 7,000 tonnes of PEEK capacity, our technical excellence and our application development know-how. We will make further downstream manufacturing investments this year to support our pipeline. These investments, to underpin Aerospace, Magma and medical manufacturing programmes, will further differentiate Victrex and continue our transition to become a solutions provider.
"We are pleased to be announcing a new capital allocation framework today, which prioritises investment for growth, but offers the opportunity for enhanced shareholder returns.
"Looking forward, Victrex continues to differentiate itself, through technical excellence, application development know-how and our significant upstream and downstream manufacturing capacity. At this early stage, we are mindful that industry challenges in Oil & Gas and Invibio may continue during the first half. For 2016 as a whole however, we remain well positioned for year on year progress."
