Victrex

Victrex is the sole manufacturer of PEEKa polymer - a high-performance thermoplastic with uses in the industrial, automotive, aerospace, medical and food sectors. In a bullish trading update for the first-half to March, it said demand had continued at the increased levels seen at the start of the calendar year. The company reported volume sales of about 550 tonne, meaning it should unveil about 1,200 tonne for the current year to September. Interim figures are due on 11 June. Back in December, the group's 2001 preliminary figures showed sales volumes up 21% at 1,603 tonne in a year of record sales and profits. Turnover improved 23% to £72.1m; pre-tax profit put on 40% at £22.3m. Investors also saw a 10% rise in the total dividend to 6.7p. At the time, the board flagged up falling first quarter sales. Prior to today's bullish statement, house broker Cazenove forecast £20.3m pre-tax profit, giving 18.4p of earnings, for the current year. The shares sparked up 7p to 323.5p on the news, against a 52-week high of 402.5p and a low of 245.5p. Victrex is trading on about 17.6 times 2002 earnings, in line with the sector average. Not cheap, but the outlook appears much improved.

Sector: Chemicals

Companies: Victrex

Market cap: £256.81m

PE Forecast: 17.6

Share price: 323.5p

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