Victrex remains confident despite tough trading in first quarter

Tough trading conditions were proving a challenge for Victrex in its first quarter, although the company said in a trading statement that it remained confident in its longer term prospects.

The FTSE 250 high performance polymer company released the statement ahead of its Annual General Meeting that was scheduled for later in the day.

Victrex's first quarter group revenues of £56m were down 6% on the prior year, with group sales volumes of 860 tonnes being down 11% on the same period a year earlier.

It said the overall performance in the company's industrial markets outside of Oil & Gas and Electronics was solid, with Invibio also showing a small improvement compared to the first quarter of 2015.

"Whilst Q1 2016 was softer compared to Q1 2015, this reflects the expected lower volumes in Consumer Electronics and Oil & Gas, where the prior period comparatives are tougher", Victrex's board said in the statement.

Victrex expected the softness to continue through the first half of the year, with volumes from the Consumer Electronics sector now expected to be more weighted towards the second half, reflecting product launch cycles.

The company said its focus remained on extending existing projects and capturing value-added business in its markets beyond 2016, including across the whole of Consumer Electronics.

Chief executive David Hummel said the company's board and management remained comfortable with current expectations for the full year.

"Looking further ahead, our medium to longer term portfolio remains attractive, alongside our focused strategy of moving further downstream and an increasingly value-added proposition", he said.

"Victrex retains a strong financial position, with no significant changes since 30 September 2015", he added.