Victrex PLC

Latest Results (19.04.2026):

Victrex PLC — Interim results for H1 2025 (six months ended 31 March 2025, covering Q1 & Q2 2025): the company delivered strong volume growth but profit was held back by currency, China ramp‑up costs and a sales mix skewed to lower‑ASP VARs. Group volumes rose 16% to 2,018 tonnes and revenue increased to £145.9m (+5% reported, +8% constant currency), while underlying PBT fell to £23.2m and reported PBT to £17.2m after £6.0m of exceptional items. Cash conversion strengthened and the interim dividend was maintained.

Volumes & revenue

Group sales volume +16% to 2,018 tonnes (first 2,000‑tonne half‑year since H2 2022). Revenue £145.9m (+5% reported; +8% cc). VARs +30% (key driver), Electronics +17%, Energy & Industrial +15%, Transport down 2% (Aero +7, Automotive -4%).

Pricing, margin & profitability

Average selling price down to £72.3/kg (-10% reported, -7% cc) due to sales mix and FX. Gross profit £64.3m (-4% reported; +3% cc); gross margin 44.1% (‑390bps). Underlying PBT £23.2m (-17% vs H1 2024; flat in constant currency). Reported PBT £17.2m after £6.0m exceptional items (ERP & Project Vista costs).

Cash, balance sheet & capital

Strong cash generation: operating cash conversion 128% (H1 2024: 64%). Net debt £40.7m (incl. cash £25.4m). Inventories reduced by £12.3m YoY to £114.4m. H1 capex £8.6m (vs £21.8m prior year) with full‑year capex expected at lower end of 8–10% of revenues.

Dividend & shareholder returns

Interim dividend maintained at 13.42p per share. Board intends to grow regular dividend with earnings and keeps share buybacks/special dividends as optional future uses of cash under capital allocation policy.

Headwinds highlighted

FX: sizeable currency headwind (≈£5m to PBT in H1; ~£8–9m forecast for FY 2025 at spot rates and current hedges). China: Panjin facility experienced initial operational challenges, contributing about £4m of profit reduction in H1 and reducing expected FY Panjin volumes to ~50t (vs 100–200t expected), adding up to ~£2m extra FY headwind vs original plan. Sales mix: faster VARs growth compressed ASP and margins.

Outlook & guidance

Volume guidance upgraded to high‑single digit growth for FY 2025. Company targets H2 PBT similar to H2 2024 and some full‑year PBT growth in constant currency, but FY PBT growth will be constrained by FX, China and Medical destocking uncertainty. Full‑year gross margin now guided to ~45–47% (below prior ~50% target).

Operational improvement & strategic milestones

Project Vista (Go‑to‑Market improvements) and a new ERP (Microsoft D365) are being implemented to drive sales excellence and cost‑to‑serve benefits. R&D target remains 5–6% of revenues. Mega‑programme progress includes a technological order (TechnipFMC from Petrobras) supporting 'Magma' scale‑up, with volumes expected to rise from FY 2026.

Medical division & divisional notes

Medical revenue broadly flat at £30.2m (down 1%); mix shifted to 75% non‑Spine vs 25% Spine, with non‑Spine growth (CMF +32%). Medical remains affected by industry destocking (Spine and China VBP), limiting visibility for H2 recovery.