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(Alliance News) - Victrex PLC on Wednesday said that while its third quarter started "solidly", the Covid-19 pandemic resulted in a deterioration in its performance.
The FTSE 250-listed polymers manufacturer said sales volume for its third quarter to June 30 was 805 tonnes, down 12% from 912 tonnes in the comparative period the year prior. Revenue was down 18% year-on-year to GBP58.8 million. The decline was attributed to the negative impact of the Covid-19 crisis.
Sales volume from the start of the year to June 30 was broadly in line with the previous year. Revenue fell to GBP210.3 million from GBP217.8 million, reflecting a 3% decline.
Victrex said the Aerospace, Automotive & Energy markets experienced the greatest level of decline. The deferral of elective procedures in Medical started to hurt performance from April as monthly revenue declines of 40% was recorded however, it added market indicators suggest that procedure deferral will gradually reverse.
Looking ahead, the Lancashire-based company said with lower production levels reflecting weaker demand and inventory reduction, and consequently the under-absorption of fixed costs as well as a weaker mix, it expects its margin to be further hurt in the second half and into financial 2020.
As at the end of June, Victrex had cash of GBP72 million, an undrawn revolving credit facility of GBP million and an GBP20 million accordion facility.
The stock was trading 3.9% lower at 1,908.00 pence each on Wednesday morning in London and is 24% lower than at the start of the year.
By Ife Taiwo; ifetaiwo@alliancenews.com.
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