Highlights

  • VCT's FY24 group revenue decreased by 5.21% YoY, while underlying profit before tax fell 26.13% YoY
  • Reported profit before tax for FY24 was GBP 23.4 million, with a strong gross margin of 46.2%
  • VCT expects profit growth in FY25 driven by robust demand in Sustainable Solutions and Medical sector improvements.

Victrex PLC (LSE:VCT) is a UK-based chemical company listed on the FTSE 250, specializing in the manufacturing and sale of high-performance polymers. The company operates through two main segments: Sustainable Solutions and Medical.

FY24 financial update

In the financial year 2024 (FY24), VCT’s group revenue decreased by 5.21% to GBP 291 million, while underlying profit before tax dropped 26.13% to GBP 59.1 million.

In FY24, the group achieved a 4% increase in volumes, despite a soft first half, driven by growth in the transport and VAR sectors. However, revenue declined by 5% due to medical destocking and FX impacts, although like-for-like pricing remained good at GBP 78/kg.

Reported profit before tax (PBT) stood at GBP 23.4 million after exceptional items, with a gross margin of 46.2%. This highlights significant recovery opportunities and future profitability potential, supported by self-help initiatives and the ongoing Project Vista.

One of the company’s major positives during the financial year was enhanced liquidity and a lower debt-to-equity ratio. The current ratio for FY24 was 4.39x, and the debt-to-equity ratio was 0.11x, significantly outperforming the industry median of 1.79x and 0.42x, respectively.

Company Outlook

The group has made a strong start to FY25. It has outperformed the prior year, despite mixed trading conditions. Profit growth is expected to be driven by robust demand in Sustainable Solutions and improvements in Medical. Cost control, self-help measures, higher asset utilisation, and lower raw material costs will also contribute. However, the timing of Medical recovery will significantly influence overall profit growth.

Stock Performance

VCT's stock price has appreciated by around 23.52% in the past month and 9.67% in the past three months. The stock’s 52-week high and low are GBX 1545 and GBX 816, respectively. As of 30 December 2024, the stock’s closing price is GBX 1066.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 30 December 2024. The reference data in this report has been partly sourced from EODHD/Others.