With a highly cash generative business model, the Victrex Group has proposed an interim dividend for shareholders, which reflects a gradual improvement in the Outlook, as well as an improvement in their cash position following cash conservation measures implemented during FY 2020. This takes their dividends back to pre-COVID-19 levels.
Other financial highlights include:
• Volumes +5% & improving end markets
- H1 sales volume up 5%, driven by improving end-markets
- Double-digit YoY growth and new applications in Electronics, VAR & Other Industrial (M&E)
- Sequential# improvement in Automotive, Aerospace & Energy
- H1 revenue in-line; softer sales mix due to strong Medical performance in prior year
- Medical revenue down 16% on tougher comparative; gradual improvement as elective procedures return
• PBT offset by sales mix, inventory unwind & bonus accrual
- PBT down 7% at £46.6m
- Post-Brexit inventory unwind impacting fixed cost absorption, offset by cost savings
- Sequential gross margin improvement, up 660 bps to 53.9%
• Strong growth pipeline of 'mega-programmes' with significant milestones delivered
- Closing in on new E-mobility business win
- Good progress in PEEK Knee with 3 trial sites now live; clinical update in July
- Preparations for Magma qualification programme in Brazil on track
- Further progress in Gears with advanced OEM testing
- Progress in Aerospace slowed by COVID-19; long term opportunities expanding
• Strong financial position; underpinning investment & shareholder returns
- H1 total cash £79.6m underpinning c£50m capex in FY 2021, operating cash conversion 96%
- New PEEK facility in China on plan, commissioning late 2022
- Post-Brexit inventory unwind to benefit cashflow (H1 2021 inventory down £17.5m to £81.0m)
