Victrex reports solid start to 2020

Victrex said on Thursday that it made a solid start to the year but warned that demand was weak at its energy business.

In a statement before its annual general meeting the plastics producer said business improved in the first quarter compared with a weak comparative period a year earlier. Revenue rose 6% to £67.7m in the three months to the end of December as sales increased 7% to 877 tonnes.

In the year to date, the FTSE 250 company is ahead of last year and business in January was broadly in line with the strong January a year earlier, Victrex said.

Automotive achieved good growth and electronics and value added resellers showed signs of stability in the three months to the end of December. Aerospace grew but the sector faces headwinds and energy was "notably weaker", reflecting a slowdown in the wider energy sector. Energy companies have suffered weak demand caused by concerns over global growth, trade tensions and the coronavirus in China.

Chief executive Jakob Sigurdsson said: "This is a solid start to FY 2020, although it is against weaker comparatives in the prior year.

"Whilst it is pleasing to see some year-on-year progress in Automotive, partly reflecting phasing, and continuing signs of stability in electronics and value added resellers, we note the weaker performance in energy, in line with recent industry commentary."

Sigurdsson said expectations for the full year were unchanged. The company cut its dividend last year after falling sales at its industrial division caused annual profit to fall.

Victrex shares rose 1.4% to 2,378p at 0815 GMT.