Victrex said it delivered an improved performance in H2 and a good finish to 2016. The core business was in growth, with Aerospace and Automotive performing well, and a more stable performance in Oil & Gas during the second half. Sales volumes for the large Consumer Electronics business were delivered on plan during Q4, with overall second half volumes more than double those in the first half. Q4, overall, saw a good performance with Group revenue up 8% to £73.7m (Q4 2015: £68.0m) and Q4 Group sales volume up 9% to 1,216 tonnes (Q4 2015: 1,119 tonnes). Despite a positive finish to 2016, full year Group revenue declined by 4% to £252.3m (FY2015: £263.5m), reflecting the year on year fall in Consumer Electronics volumes, which were more than 30% down. Full year Group sales volume was down 6% at 3,952 tonnes (FY 2015: 4,217 tonnes). Medical revenue (Invibio) for the full year of £50.8m (FY 2015: £50.5m) reflects a stable Spine market in the US. Growth outside of the US, in emerging markets, remains positive. "Our mega-programmes continue to make progress, with the Magma Oil & Gas project delivering first meaningful revenues of over £1m in FY16," the company said in a statement. "Incremental investment opportunities aligned to our mega-programmes are also being progressed, which would further support delivery of the Group's downstream strategy and growth pipeline." OUTLOOK "As we start our new financial year, our core business remains robust. However, we remain mindful, as previously communicated, that our early planning assumption suggests Consumer Electronics volumes will be significantly lower in 2017, compared to 2016. This would also impact our operating leverage. "Whilst we will continue to invest in our 'front end' commercial, marketing and technical functions, to help drive adoption of our mega-programmes, we will also further enhance our ongoing focus on cost efficiency opportunities over the coming year. "With a differentiated strategy, a strong pipeline and a highly cash generative business model, Victrex remains in a good position to drive shareholder value for the medium to longer term."
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