Victrex expects improvement in second half

Victrex, which specialises in high performance polymer solutions, reported a drop in first half revenue but said it remains on track for an expected improvement in the second half of the year.

The FTSE 250 company said the re-phasing of volumes in the consumer electronics business to the second half of the year, together with the tougher first half comparatives and a worsening outlook in the oil and gas markets, prompted an 11% drop in group revenue to £117.0m.

Meanwhile, first half group volumes were down 13% to 1,770 tonnes.

In a pre-close trading update ahead of its interim results on 16 May, Victrex said the second quarter of the year was robust, with volumes excluding Consumer Electronics flat compared to the record prior year despite the weaker performance in oil and gas markets.

The company said it remains encouraged that the performance in its industrial markets outside of the electronics business and oil and gas was solid, with transport markets in growth.

In its medical division, Invibio, performance in the core spine market was broadly similar to the prior year, with revenue for the first half of £25.2m compared with £25.9m in the first half of 2015.

Victrex said its expectation for an improved second half reflects the robust second quarter performance and the re-phasing of Consumer Electronics volumes, which will be phased well into the second half, ahead of product launch cycles.

“This opportunity remains attractive for the current year and we expect to have a better view on the scale of volumes by our May interim results. This will provide a clearer view of whether Consumer Electronics has the potential to be similar to the second half of 2015,” the company said.

Chief executive David Hummel said: "We retain our view of an overall improvement in the second half and are comfortable with current expectations for the full year as a whole."