Victrex plc (LSE: VCT) closed Thursday at 603p, up 1.01%, as the advanced materials manufacturer found support following a challenging set of half-year results published earlier in the month.
The company reported revenue of £147.1 million for the six months ended 31 March 2026, a modest 1% increase from £145.9 million a year earlier, with group sales volumes rising 6% to 2,137 tonnes.
However, the headline result was distorted by a £60.6 million non-cash impairment charge on its Chinese manufacturing facility, pushing the company to a pre-tax loss of £44 million for the period compared with a profit of £17.2 million a year ago.
Underlying pre-tax profit fell 18% to £19 million, in line with previous guidance, as lower average selling prices and an unfavourable sales mix offset the volume growth, with average selling price declining 4% year on year to £69 per kilogram.
Chief executive Dr James Routh acknowledged that Victrex had “not adapted quickly enough to changed market conditions” and outlined a Profit Improvement Plan that includes reducing approximately 10% of roles, primarily in central functions, with cost savings of £10 million targeted for 2027.
Second-quarter volumes rose 14% year on year, suggesting momentum was building after a slow start to the financial year, and management said it had made a solid start to the second half.
Full-year underlying pre-tax profit was guided to a range of £42 million to £44 million, while the interim dividend was held unchanged at 13.42 pence per share.
Victrex announced plans for a Capital Markets Day in September 2026, where management will set out medium-term ambitions and explain how the Profit Improvement Plan will drive the next phase of growth.
The company’s PEEK and PAEK polymer solutions serve aerospace, automotive, electronics, energy, and medical markets, with strong structural demand expected across all five end markets in the medium term.
Thursday’s gain reflected modest relief that the worst may be priced in, with the stock now trading well below the 52-week high and analysts broadly maintaining Buy ratings.
