Engineering materials specialist Victrex has reported a robust start to its 2025 financial year, with first-quarter group revenue rising 9% to £66.6m and volume growth of 20% to 898 tonnes.
Victrex enjoyed strength across most of its industry groups. The company noted growth in aerospace, while the electronics segment benefited from increased demand for semiconductor applications and smart devices.
The Automotive sector currently trails behind last year’s performance, however, Victrex anticipates growth in its E-mobility business as increased platform builds for 800-volt motors drive higher content of VictrexTM PEEK per vehicle.
Looking ahead, the company expects a significant increase in revenues from its mega-programmes, particularly in Aerospace Composites, E-mobility, and Trauma applications. The business maintains its full-year expectations and forecasts improved cash flow generation, supporting both growth investments and shareholder returns.
The average selling price remained stable at £74 per kilogramme, reflecting currency headwinds, sales mix variations, and the softer performance in the Medical sector.
The CEO offered a cautious message for the near term, pointing to the mixed trading conditions but suggested lower costs would support profits in 2025.
“Cost control, self-help measures, higher asset utilisation and lower raw material costs will help to underpin profit improvement in FY 2025,” said Jakob Sigurdsson, Chief Executive of Victrex.
“However, we are mindful that current trading conditions remain mixed, with continuing softness in Medical. As a result, profit growth will be weighted to the second half year. This reflects Medical and sales mix, the impact of currency – which is a £7m-£8m headwind to PBT for the year – being heavily weighted to H1 2025, and annualised costs from our new China facility. All of these factors are expected to limit our progress in the first half year, versus H1 2024.”