|
FY 2017 |
FY 2016 |
% change |
|
|
Group sales volumes |
3,992 tonnes |
3,952 tonnes |
+1% |
|
Group revenue |
£290.2m |
£252.3m |
+15% |
|
Gross profit |
£183.8m |
£158.7m |
+16% |
|
Gross margin |
63.3% |
62.9% |
+40 bps |
|
Profit before tax (PBT) |
£111.0m |
£100.3m |
+11% |
|
EPS |
116.4p |
96.8p |
+20% |
|
Dividend per share (regular & special dividend) |
121.80p |
46.82p |
+160% |
Highlights:
• Strong core business* growth, fully offsetting lower Consumer Electronics
– Core business volumes up >15% reflecting broad based growth & new applications
– Total sales volumes up 1%
– Group revenue up 15%, constant currency revenue* up 3%
– Strong performances in Automotive, Electronics (ex-Consumer), Value Added Resellers, Energy
• Further progress in new product pipeline
– PEEK Gears supply agreement to major European car manufacturer starting in 2018
– Meaningful revenue of £1m+ for PEEK-OPTIMATM HA-Enhanced Spine product
– Medium term aspiration for 10-20% of sales from new products* (2017: 4%)
• Investment to underpin Polymer & Parts strategy
– £10m acquisition of Zyex PEEK fibres business to expand semi-finished products offering
– TxV Aero Composites joint-venture to develop differentiated Aerospace products
– £10m Polymer Innovation Centre now operational; support prototyping & new polymer grades
• Record cash generation supports strong shareholder returns
– Cash up 88% to £120.1m and operating cash conversion* of 124%
– Regular dividend up 15% to 53.80p (dividend cover 2.2x*), special dividend of 68.00p/share
Jakob Sigurdsson, Chief Executive of Victrex, said: “This has been a good year for Victrex, with the strength and broad based growth in our core business fully offsetting the expected and significant reduction in Consumer Electronics volumes.
“Our pipeline of new products – both our core application pipeline and our mega-programmes – remains strong and our aspiration to deliver 10-20% of sales from new products in the medium term is unchanged. Our Polymer & Parts strategy is already differentiating Victrex in a competitive market and whilst several of our mega-programmes will take time to be adopted, we made good progress this year in Gears, in Aerospace Brackets and in our next generation Spine product. We are also closing in on a major OEM agreement in Dental.
“Whilst growth investment remains the priority for Victrex and we will continue to focus on partnerships, alliances and acquisition opportunities to help accelerate our growth programmes, our ability to deliver strong returns provides an additional attraction. With strong earnings growth and cash generation, the Board is proposing a 15% increase to our regular dividend and a special dividend of 68p, with a combined dividend per share of 121.8p.
“Looking forward, we have started our new financial year with positive growth momentum. Whilst Sterling has strengthened over recent months, currency is still supportive for the year ahead, although not at the levels seen in 2017. We remain focused on driving growth, on cost efficiency and making progress in delivering our Polymer & Parts strategy.”