In a pre-close trading update, Victrex (VCT) revealed that full-year revenue had declined by 4 per cent to £252m, primarily due to a near one-third fall in consumer electronics volumes from a year earlier. But difficulties in this business segment had been flagged prior to the announcement, and the market responded positively to the polymer products group's improved showing during the second half of its financial year through to September, sending the share price up 8 per cent.
The contrasting fortunes of Victrex are illustrated by the turnaround in the consumer electronics segment, which hit its performance targets through the fourth quarter, feeding in to second-half volumes that were more than double those in the first half. This was underpinned by a step-up in demand for Victrex's high-performance PEEK plastic products. As a consequence, fourth-quarter group revenue was up 8 per cent to £73.7m, while sales volumes increased by 9 per cent on the comparable period in 2015 to 1,216 tonnes.
Elsewhere across the group, the aerospace and automotive business fared well, and there was a more stable performance from the oil and gas segment during the second half, as a degree of stability returned to the underlying market. Full-year revenue for the medical (Invibio) business will come in at £50.8m, £300,000 to the good on the 2015 comparable, reflecting a stable market for spinal treatments in the US. PEEK-polymer implants for spinal fusion are now the medical-technology leaders because of their clinical advantages, including enhanced flexibility.
