Volumes, revenue and profit changed little at Victrex (VCT) in the year to end-September and - with such a short order book - predicting outcomes is difficult. Crucially, however, a sharp pick up in activity during the second half has continued into the new financial year and management is understandably optimistic.
Indeed, sales volumes in the final six months of the period grew 10 per cent on the first half and second half pre-tax profit of £48.9m was slightly better than expected. Overall, operating profit at the core business - selling PEEK high performance plastic for parts fitted to jet planes, motor cars and electronic gadgets - was flat at £68.6m in the year. European volumes grew sharply and Japan recovered, too. Sales to automotive and aerospace customers grew again and demand for industrial machinery and equipment rose, off-setting weakness in oil & gas and electronics. Focusing on more lucrative applications slimmed down the pipeline of potential developments to 1,600, or 2,064 tonnes. But Victrex still needs extra capacity and a £90m plant which could increase output by two-thirds is on track to start up in 2015. Profit at the smaller medical devices unit Invibio was largely unchanged at £29.3m, although demand for metal–free dentures is rising fast.
Broker Morgan Stanley expects adjusted EPS of 91.3p for 2014, up from 86p in 2013.
VICTREX (VCT) | ||||
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ORD PRICE: | 1,654p | MARKET VALUE: | £1.40bn | |
TOUCH: | 1,654-1,658p | 12-MONTH HIGH: | 1,791p | LOW: 1,457p |
DIVIDEND YIELD: | 2.6% | PE RATIO: | 19 | |
NET ASSET VALUE: | 370p | NET CASH: | £91.6m |
Year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2009 | 104 | 25.1 | 21.7 | 19.2 |
2010 | 190 | 74.9 | 65.1 | 25.0* |
2011 | 216 | 94.2 | 85.3 | 32.5 |
2012 | 220 | 94.5 | 85.7 | 37.4 |
2013 | 222 | 94.6 | 86.5 | 43.0 |
% change | +1 | - | +1 | +15 |
Ex-div: 5 Feb Payment: 21 Feb *Excludes 50p a share special dividend |