Victrex (LON: VCT) shares are down close to 6% to 554p on Monday after the high-performance polymer specialist reported a sharp decline in first-half profits and booked a hefty £60.6m non-cash impairment charge against its China manufacturing facility.
The Lancashire-based maker of PEEK polymers — used in aerospace, automotive, medical and electronics applications — posted underlying profit before tax of £19.0m for the six months to 31 March 2026, an 18% drop on the £23.2m recorded a year earlier. On a reported basis, the company swung to a loss of £44.0m, against a profit of £17.2m in H1 2025, after £63m of exceptional charges.
Revenue edged up 1% to £147.1m, with sales volumes rising 6% to 2,137 tonnes driven by the Sustainable Solutions division and a stronger second quarter. However, a 4% fall in average selling prices to £69/kg, alongside adverse sales mix and currency headwinds, weighed heavily on margins, with gross margin contracting 240 basis points to 41.7%.
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Net debt widened to £45.4m from £40.7m a year ago.
Chief Executive Dr James Routh, who took the helm four months ago, said the company has “not adapted quickly enough to changed market conditions” and pledged to focus on execution. A Profit Improvement Plan, including a roughly 10% headcount reduction primarily in central functions, is targeting at least £10m of annualised savings by FY 2027, with early benefits expected before the financial year end.
The interim dividend was held flat at 13.42p per share.
For the full year, the board guided underlying PBT of £42m–£44m, noting a solid H2 start but flagging risks from Middle East tensions. A Capital Markets Day is planned for September 2026.
The plant is expected to support the production of the company’s metabolic and weight management treatments.
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