Business
Half Year Trading Update
Half Year Trading Update.
About this update from Victrex Plc
[{"type":"text","content":"\n RNS Number : 2357Q Victrex PLC 07 April 2009 \n \n\n\nTuesday 7 April 2009\n\nVictrex plc\nHalf Year Trading Update\n\n\nVictrex will announce its results for the six months ended 31 March 2009 on Tuesday 19 May 2009. Today, the Company announces its regular half year trading update. \n\nAt our AGM in February, we announced the strategic reorganisation of our business into two divisions: Invibio®, our biomaterials business and Victrex PEEK, now known as Victrex Polymer Solutions. Our half year results will reflect this divisional split.\n\nOverall, we have continued to see strong progress in Invibio, offset by lower volumes in Victrex Polymer Solutions as demand in our major industrial markets has remained weak.\n\nInvibio\n\nInvibio had an excellent first half with revenue of approximately £17.6m, an increase of 50% over the previous first half (£11.7m). We expect second half revenue to be maintained at a broadly similar level to the strong first half. \n \nGroup sales volume\n\nAt approximately 774 tonnes, overall first half sales volume was 40% down on the previous first half as a result of the expected reduction in demand for Victrex PEEK in our major end user industrial markets, particularly automotive and electronics. Across regions, the United States held up better than Europe and the Asia-Pacific markets. \n\nWhile February sales volume (at 109 tonnes) was similar to levels experienced in recent months, March (at approximately 90 tonnes) saw evidence of renewed destocking as some customers reduced inventories at the quarter end. \n\nWhile it is still too early to make predictions about second half sales volume, current month order levels are running at a higher level than at the same time in March.\n\nFor planning purposes, we have assumed that volumes will remain at similar levels to the second quarter and have taken actions to streamline Victrex Polymer Solutions while continuing to invest in new applications and growth areas. We have reduced polymer p...