Victrex FY dividends return to pre-Covid levels

Polymer group Victrex said on Monday that profits had improved in the 12 months ended 30 September, leading the group to significantly hike its full-year dividend payout.

Victrex said revenues had grown 15% to £306.3m during the year, with group sales volumes up 25% to 4,373 tonnes, while gross profits increased 16% to £165.3m and underlying pre-tax profits shot up 21% to £91.7m. Earnings per share were up 35% at 84.3p.

As a result, Victrex raised its full-year dividend per share by 137% to 109.56p, returning the payment to pre-Covid-19 levels on the back of an operating cash conversion of 100%.

Looking forward, the FTSE 250-listed firm stated it expects to see year-on-year progress in full-year sales volumes in 2022, with several end-markets expected to show further recovery.

However, Victrex also cautioned that in addition to "a sizeable currency headwind", it was still facing increased raw material and energy costs, which it anticipates will impact it "particularly in the first half".

Chief executive Jakob Sigurdsson said: "Victrex delivered a solid and sustainable recovery during FY 2021, following the impact we saw from the pandemic in FY 2020. We saw strong volume growth in several end-markets and strong cash generation, supporting investment and shareholder returns.

"With an attractive portfolio of short, medium and long term growth opportunities, a strong ESG agenda, including alignment to global megatrends and sustainable products which help CO2 reduction and support environmental and societal benefit, and a highly cash-generative business model, the Group remains well placed for the medium to long-term."

As of 0740 GMT, Victrex shares were untraded at 2,354.0p.