Victrex hikes dividend on record profits

Plastics group, Victrex, hiked its dividend as it reported record group revenue and profits for the year.

Profit before tax was £94.2m, up 26% on 2010, while revenue for the year to the end of September was up 14% to £215.8m.

Basic earnings per share were up 31% at 85.3p, with the company adding it had benefitted from this year's reduction in UK corporation tax.

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This all resulted in a final dividend of 24.5p per ordinary share making a total of 32.5p per share, up from 25p in 2010.

The company said all its major markets except aerospace had seen growth, with total 2011 sales volume setting a new record.

"Growing end user demand for our products has led to higher manufacturing rates, both at our customers and throughout the supply chain," it said.

However, it warned that some of its markets, particularly in Europe, were softening due the ongoing economic uncertainty.

Despite this the firm said it anticipated full year earnings being on track with current market expectations for 2012.

Industrial sales volumes were 11% up on 2010, which Victrex said reflected increased sales into the European industrial machinery sector as business confidence returned and companies started to invest in capital equipment again.

The oil and gas industry also showed strong growth with high oil prices and increased demand continuing to drive production and exploration activity, it added.

Transport sales volume was up 10% on 2010 at 741 tonnes driven by the European automotive sector benefiting from increased worldwide demand for luxury cars and further new applications closed in the year.

But its aerospace sales were flat, reflecting the delays in commercial production of the Boeing 787, the firm said.