(Sharecast News) – Victrex reported a lower first-half profit on Monday, as volume growth was offset by sales mix, pricing and currency headwinds, while the high-performance polymers specialist said its profit improvement plan was progressing well.
The FTSE 250 company said revenue for the six months ended 31 March rose 1% to £147.1m, or 2% at constant currency, from £145.9m a year earlier.
Group sales volumes increased 6% to 2,137 tonnes, driven by Sustainable Solutions, while second-quarter revenue rose 7% after a slow start to the year.
Average selling price was stable compared with the second half of 2025, but fell 4% year-on-year to £69 per kilogram, from £72 per kilogram.
Gross profit declined 5% to £61.3m, while gross margin narrowed by 240 basis points to 41.7%.
Underlying pre-tax profit fell 18% to £19.0m, from £23.2m, or 14% at constant currency, in line with previous guidance.
Underlying earnings per share declined 24% to 17.2p, while underlying operating cash conversion was 109%, compared with 128% a year earlier.
Victrex reported a statutory pre-tax loss of £44.0m, compared with a £17.2m profit a year earlier, after £63m of exceptional items.
That included a £60.6m non-cash impairment of its China manufacturing facility, although the group said it remained committed to the site in what it described as its fastest-growing region.
The interim dividend was maintained at 13.42p per share.
Net debt rose 12% to £45.4m, while net debt to underlying EBITDA stood at 0.65 times, compared with 0.51 times a year earlier.
Victrex said its profit improvement plan was on track to deliver early benefits towards the end of the 2026 financial year and at least £10m of full-year savings in 2027.
The company was reducing headcount by around 10%, mainly in central functions, and has introduced a new operating model with a refreshed leadership team.
Portfolio simplification is also under way, with Victrex targeting a more balanced mix of short- and long-term programmes and warning of a potential additional non-cash charge of up to £10m in the second half.]
Chief executive Dr James Routh said the group had regained momentum in the second quarter, but added that Victrex had “not adapted quickly enough to changed market conditions” and needed to focus on improving execution.
“The rapid action we have taken to address these issues, through implementing the Profit Improvement Plan and establishing a high-performance leadership team, will help to drive our next phase of sustainable growth,” he said.
“Our value proposition remains robust and we will host a Capital Markets Day in September 2026 to set out how we are addressing our challenges including improving execution, as well as our medium term ambitions.”
Victrex said it had made a solid start to the second half, though it remained mindful of the potential impact on global demand and energy costs from events in the Middle East.
The board said it expected underlying pre-tax profit for the 2026 financial year to be in the range of £42m to £44m.
At 1100 BST, shares in Victrex were down 0.51% at 586p.
Reporting by Josh White for Sharecast.com.
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