Victrex

Growing 'PEEK' polymer maker Victrex met market expectations for the year to 30 September, with pre-tax profits up 18% to £22.6m, sales 21% ahead at £71.5m, and total sales volumes 23% higher at 1,481 tonnes. The total dividend for the year was lifted 7% to 7.5p. Michael Peacock, finance director, flagged up a rise in operating cashflow from £17.1m to £26.1m, leaving the group ungeared at year-end, with £6m of net cash to support growth, against £1.7m debt last time out. Victrex also has a £40m bank facility, which was undrawn at the year-end. Geographically, Europe scored record sales volumes with growth coming from all its markets, and volumes in the United States gathered up nigh-on 21% thanks to rising demand in the industrial and electronics segments. Growing in importance, Asia-Pacific sales volumes grew 34.7% to a record 194 tonnes, with growth coming from the electronic, industrial and transport sectors - in particular, transport experienced a 'step change' in volumes thanks to rising demand from the car sector. Elsewhere, medical implant materials business Invibio did very well, and entered into 24 long-term agreements with 'implantable' medical device makers during the year. For the current year, Evolution Beeson Gregory expects pre-tax profits of £25.4m on £77.3m sales, giving EPS of 21.5p. Its price target is 400p. Buy.

Sector: Chemicals

Companies: Victrex

Market cap: £271.35m

PE Forecast: 15.8

Share price: 339.25p

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