Victrex (VCT) Trading Update summary

Trading performance and outlook

• Q1 2025 revenue rose 9% to £66.6m, with volume up 20% to 898 tonnes, reflecting a solid start versus a weak prior year.

• Full-year expectations remain unchanged, with guidance for at least mid-single digit volume growth and underlying PBT growth ahead of volume.

• Trading conditions are mixed: Medical revenues remain subdued due to industry destocking, while Aerospace, Electronics, Energy & Industrial, and Value-Added Resellers show year-on-year improvement.

• Profit growth is expected to be weighted to the second half, as H1 faces currency headwinds (£7m-£8m impact), sales mix, and costs from the new China facility.

• Cost control, self-help measures, higher asset utilisation, and lower raw material costs are expected to support profit improvement in FY 2025.

Mega-programmes and sector highlights

• Significant revenue step-up expected in mega-programmes: Aerospace Composites, E-mobility, and Trauma.

• Awaiting regulatory outcome for PEEK Knee in India, with commercial launch possible in 2025; US clinical trial site recruitment progressing.

• Automotive performance currently lags prior year, but E-mobility is set for improvement as 800V motor platforms increase Victrex™ M PEEK content.

• Electronics benefits from improved Semiconductor and smart device demand.

Financial position and capital allocation

• Cashflow is expected to improve further, supporting growth investment and shareholder returns.

• Capital expenditure to reduce to 8-10% of revenues (approx. £30m) as major investment phase concludes.

• Inventory levels targeted to unwind towards £100m, with improved asset utilisation anticipated.

• Cost of manufacture to benefit from lower raw material costs and tight cost control, aided by Project Vista.