Victrex

PEEK polymer maker Victrex provoked much interest today with some stellar interims to March. Pre-tax profits powered ahead 36% to £12m, EPS rocketed 35% higher to 10.1p, all on turnover lifted from £27.2m to £36.1m. Encouragingly, Victrex's first-half sales volumes were 33% higher at 743 tonnes, and 15% ahead of the preceding half. These higher sales levels have been sustained into the first two months of the second half as well. As for the balance sheet, the company remained ungeared with £1m net cash (net debt of £5.8m at the interim stage in 2002) and £36m of unused bank facilities. Furthermore, the medical implant materials business business, Invibio, performed well, entering into seven long-term deals with medical device makers. For the year to September, Evolution Beeson Gregory's Nick Walker has upgraded his pre-tax profit forecast from £21.8m to £24m, and the EPS estimate from 18.5p to 20.4p. All in all, Victrex looks fairly robust, has a tidy balance sheet and has good growth potential. Hold.

Sector: Chemicals

Companies: Victrex

Market cap: £252m

PE Forecast: 15.6

Share price: 317.5p

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