Victrex bounces back with strong second half

Plastics group Victrex enjoyed an improved second half, but full year sales still shrank due to consumer electronics weakness that is expected to persist.

An 8% revenue rise in the fourth quarter meant group revenue for the year to end-September was down just 4% to £252.3m, having fallen 10% in the first half of the year.

This reflected a 30% decline in consumer electronics volumes that saw group sales volumes slip 6% to 3,952 tonnes for the year, arresting the 13% drop from the first half.

This was thanks to continued growth from the FTSE 250 group's core business, with good performances from aerospace and automotive, a "more stable" oil and gas market, and flat medical sales.

But while the core business remains robust, consumer electronics volumes are expected to be "significantly lower" in 2017 compared to 2016, as has been warned recently, which will impact operating leverage.

Management said in the statement that they will continue to invest in our 'front end' commercial, marketing and technical functions, and will also "further enhance our ongoing focus on cost efficiency opportunities over the coming year".