The improved second half showing at high performance thermoplastic PEEK provider Victrex (VCT) shines through today's end of year trading update.

Sales volumes in the consumer electronics business more than doubled compared to the first half of 2016. Fourth quarter revenue climbed 8% from £68m in 2015 to £73.7m while volumes rose 9% to 1,216 tonnes.

Better still, analysts at Barclays say Victrex should be supported by higher foreign earnings over the next two financial years, sop a real winner of Sterling's plunge. No wonder investors are excited, bidding the stock nearly 9% higher to £17.64.


However, high volatility in the pound may lead to reluctance in the market to undertake price upgrades until the company has locked in these rates through hedging.

Full year revenue has fallen by 4% from £263m to £252.3m as a 30% decrease in consumer electronics volumes hit the firm.

Credit Suisse believes the lower volumes in this division will result in £6m less EBITDA, but holds its rating at ‘outperform.’

As previously announced, Victrex says volumes in consumer electronics will be significantly lower in 2017, which will impact operating leverage.

The firm’s aerospace and automotive divisions are performing well, while the oil and gas division is stable.

Issue Date: 11 Oct 2016