Victrex PLC on Friday said it expects to deliver growth in its full financial year, after revenue rose in the first quarter.
The Lancashire, England-based speciality chemicals firm said its 2022 financial year was off to a strong start. In its first quarter ended December 31, revenue was 9.2% up from £68.7m in the previous year, to £74.6 million.
Sales volumes in the period were 16% ahead of the previous year, to 1,025 tonnes from 883 tonnes.
In the financial year to date, from October 1 to January 31, revenue and sales volumes were ahead of a year before, with volume growing by double digits.
End-market performance in Electronics, Energy & Industrial, Medical, and Value Added Resellers also grew year-on-year in the first quarter. Automotive was ‘modestly’ down, owing to the current challenges in the industry. Its performance was improved on the preceding quarter, however.
Medical revenue in the quarter in Asia-Pacific came in at a record high, but were slightly offset by a drop in US revenues, as the Omicron variant outbreak reduced surgery rates during the period.
Victrex said it remains ‘highly cash generative’, with cash reserves of £113.6 million at the end of December. The year ahead will see high capital expenditure, as the chemicals company plans to spend £60 million to boost capacity in China and improve its UK assets.
Looking ahead, Chief Executive Jakob Sigurdsson said: ‘This is a solid start to FY 2022, with continuing momentum and healthy top-line demand. Expectations for the full year are unchanged at this early stage. Whilst we anticipate further volume improvement across several end markets, we are mindful of headwinds including currency, raw material costs and increasing energy inflation. Overall, we continue on plan to deliver year-on-year growth in FY 2022.’
Victrex’s share price fell by 2.9% to 1,990.00 pence in London on Friday morning.
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