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Victrex PLC on Tuesday reported more than 40% profit growth, despite only a small increase in annual revenue, as it made cost reductions amid its profit improvement plan. Shares in Victrex were up 8.3% to 676.00 pence on Tuesday morning in London. The Lancashire, England-based polymer producer said pretax profit rose 44% to £33.8 million for the year that ended September 30 from £23.4 million the year before. The bottom line was bolstered by a 65% reduction in exceptional items to £12.6 million from £35.7 million. These included a 13% decrease in the costs of implementing the company’s enterprise resource planning system and associated business improvements. This was on top of no costs related to impairment of property, plant and equipment relating to gears manufacturing, compared to £4.6 million last year. Revenue rose 0.6% to £292.7 million from £291.0 million. Sales volumes rose 12% to 4,164 tonnes from 3,731 tonnes. Victrex said revenue growth lagged volume growth because of lower revenue in Medical Spine and volumes being concentrated in VARs and Energy & Industrial end markets. On an adjusted basis, pretax profit fell 21% to £46.4 million from £59.1 million. Victrex proposed a final dividend of 46.14p per share, bringing its total dividend for financial 2025 to 59.56p, unchanged from the year before. Looking ahead, the company said it expects low to mid-single digit percentage growth in volumes in financial 2026, as well as a flat to slightly ahead gross margin between 45.5% and 46.5%. Reflecting on its profit improvement plan, Victrex said it is building on investments from its ERP system and increased digitalisation in financial 2025. Victrex said it is targeting at least £10 million in annual savings, and anticipates that financial 2027 will see the majority of full-year benefits of this. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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