The strong pound is expected to take the shine off full-year results from Victrex (VCT) next week, as 97 per cent of the polymer manufacturer's sales are exported from the UK. But the company is nonetheless expected to announce a special dividend, as it has done in previous years. Numis reckons this could total 58.7p per share.
In an encouraging year-end update in October, management reported a 22 per cent increase in sales volumes for the year, with the electronics segment enjoying a particularly strong second half. Victrex's PEEK polymers are used in a variety of electronic gadgets, for which consumer demand remains strong despite the wider backdrop of macro-economic uncertainty. This part of the business, however, is lower-margin than Victrex’s other segments, so management was careful not to guide up profit expectations.
