Victrex hit by softer Q1 trading as revenues, volumes slip

(Sharecast News) - High-performance polymers business Victrex reported a softer start to the year on Friday, with first‑quarter revenues and volumes declining as strength in its energy and industrials unit was offset by weaker trading in its transport, VARs and medical division. Average selling prices were 2% lower at £73 per kilogram in the three months ended 31 December, with Victrex noting the early part of the year reflected a subdued December and a sales mix that weighed modestly on performance. Q1 volumes fell 4% to 858 tonnes, while revenues slipped 6% to £62.4m.

Year‑to‑date, covering the four months to 31 January, Victrex said volumes were broadly in line with last year as January recovered some of the Q1 shortfall, though revenues remained slightly lower due to mix effects.

Victrex also reiterated that FY26 would be second‑half weighted, with its first half performance expected to lag the prior year given the softer end to Q1 and a currency headwind concentrated in H1.

In its sustainable solutions unit, energy and industrial continued to perform well on healthy activity levels. However, VARs saw a slow start to Q1 but momentum improved into Q2, leaving year‑to‑date volumes ahead of last year, while medical revenues remained slightly below the prior year, though January delivered the usual seasonal uplift.

Net debt stood at £21.1m at 31 December, with cash of £28m, ahead of the roughly £40m FY25 final‑dividend payment due later this month.

Chief executive Dr James Routh said: "The start of FY26 reflected usual Q1 seasonality, alongside a subdued performance across some end-markets. On a year to date basis, our second quarter started solidly, with YTD volumes now in line with the prior year. Whilst we continue to be mindful of wider macroeconomic conditions, our full year guidance remains unchanged. As previously communicated, performance will be weighted to the second half. The first half is expected to be weaker than the prior year."

Reporting by Iain Gilbert at Sharecast.com