**Summary of Victrex PLC Preliminary Results for the Year Ended 30 September 2025**
Victrex PLC, a global leader in high-performance polymers, reported its preliminary results for the fiscal year 2025, highlighting strong volume growth offset by challenges in sales mix, foreign exchange (FX) fluctuations, and start-up costs in China. Key financial and operational highlights include
### **Financial Performance**
**Group Revenue**Increased by 1% to £292.7 million (FY 2024: £291.0 million), with a 3% rise in constant currency.
**Group Sales Volume**Surged by 12% to 4,164 tonnes (FY 2024: 3,731 tonnes), driven by growth in Value Added Resellers (VARs) and Energy & Industrial sectors.
**Underlying Profit Before Tax (PBT)**Declined by 21% to £46.4 million (FY 2024: £59.1 million), primarily due to FX impact, China start-up costs, and adverse sales mix. In constant currency, underlying PBT fell by 10%.
**Reported PBT**Rose by 44% to £33.8 million (FY 2024: £23.4 million) after £12.6 million in exceptional items (FY 2024: £35.7 million).
**Gross Margin**Remained stable at 45.3%, in line with guidance, despite a 90 basis points decline due to sales mix, China start-up costs, and FX.
**Dividend**Maintained at 59.56p per share, with a proposed final dividend of 46.14p.
### **Operational Highlights**
**Volume Growth**Strong performance in VARs (+21%) and Energy & Industrial (+17%) sectors, offset by weaker Medical Spine sales.
**Medical Segment**Revenue declined by 5% to £58.8 million due to Spine sales, though Non-Spine business grew by 7%.
**China Operations**New manufacturing facility incurred an £8 million annualised operating loss, with volumes expected to improve in FY 2026.
**Profit Improvement Plan**Launched to achieve at least £10 million in annual savings, with full benefits expected in FY 2027.
**Capital Allocation**Updated policy targets net debt/EBITDA of 0.5x-1.0x, with dividends maintained and potential for share buybacks or special dividends below 0.5x.
### **Outlook for FY 2026**
**Volumes**Expected low to mid-single-digit percentage growth.
**Average Selling Price (ASP)**Broadly stable with FY 2025 levels.
**Gross Margin**Flat to slightly ahead (45.5%-46.5%).
**Currency Impact**£2-£3 million adverse impact expected.
**Transitional Year**FY 2026 is anticipated to be transitional, with a focus on simplifying operations and driving long-term growth.
### **Strategic Initiatives**
**Innovation**Continued investment in R&D, particularly in Medical Acceleration and digital tools.
**Sustainability**53% of revenues aligned with sustainable products, supporting environmental and societal benefits.
**Mega-Programmes**Progress in Aerospace Composites, E-mobility, Magma, Trauma Plates, and PEEK Knee, though revenues were impacted by regulatory and adoption delays.
### **Management Commentary**
CEO Jakob Sigurdsson emphasized the company’s resilience in a challenging environment, highlighting volume growth and the ongoing Profit Improvement Plan. He noted that FY 2026 will be a transitional year, with a focus on simplifying operations and leveraging Victrex’s strong market position and long-term growth opportunities.
Overall, Victrex demonstrated robust volume growth despite external headwinds, with strategic initiatives in place to enhance profitability and sustain long-term growth.
| Metric | FY 2025 (£m) | FY 2024 (£m) | % Change (Reported) | % Change (Constant Currency) |
|---|---|---|---|---|
| Group Revenue | 292.7 | 291.0 | +1% | +3% |
| Gross Profit | 132.6 | 134.3 | -1% | +5% |
| Underlying PBT | 46.4 | 59.1 | -21% | -10% |
| Reported PBT | 33.8 | 23.4 | +44% | +157% |
| Net Debt | 24.8 | 21.1 | +18% | N/A |