Victrex declines after reporting divisional difficulties

Shares in FTSE 250 materials group Victrex moved lower on Tuesday after the group reported a decline in half year revenues in its Invibio Biomaterial Solutions business and warned of the ongoing challenges in some of its end markets.

Shares in FTSE 250 materials group Victrex moved lower on Tuesday after the group reported a decline in half year revenues in its Invibio Biomaterial Solutions business and warned of the ongoing challenges in some of its end markets.

The company blamed the revenue decline on the continued destocking at selected spine customers within the Invibio business, which was first reported in the second half of last year. Revenue for the division in the six months ended March 31st fell to £24.2m compared to £25.5m for the same period last year.

In a statement Victrex said: "We are pleased to report that, despite continued global economic challenges, group sales volume for the first half of 1,392 tonnes was ahead of the same period for last year (1,377 tonnes).

"As expected, this reflects a stronger performance from our Victrex Polymer Solutions business (VPS) in the second quarter with group sales volume of 752 tonnes compared to the first quarter of 640 tonnes. The first half has also seen continued progress from speciality products, predominantly driven by success in our Aptiv films business.

"We have made further progress with regulatory approvals in the spine market in Asia and the initial response to the launch of our dental product line, JUVORATM, has been positive."

Looking ahead, the initial order book for April was described as 'robust', the capital investment programme is on track, and there are strong opportunities to drive growth into new markets, applications and geographies.

The share price dropped 2.95% to 1,548p by 08:40.

NR

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