Shares of Blackpool-based high performance polymer company Victrex fell 8% after it reported “softer than expected” medical revenue in its third-quarter to June 30 and announced a change in chief executive officer.
Jakob Sigurdsson intends to retire after nearly eight years as CEO. James Routh, currently CEO of AB Dynamics plc, will join Victrex as its new CEO.
Victrex said sales volume was 1,057 tonnes in the third quarter, up 8%, but revenue fell 3% to £71.5 million. Nine-month volume was up 13% to 3,075 tonnes while nine-month revenue rose 2% to £217.3 million.
In his outlook, CEO Jakob Sigurdssonsaid: “Overall Q3 trading saw continued volume momentum, offset by a softer than expected performance in Medical and further adverse sales mix within Sustainable Solutions.
“The Group is well positioned to deliver at least high single digit volume growth for the full year, in line with guidance, although the remainder of FY 2025 sees a tougher comparative and we are mindful of ongoing macroeconomic uncertainty.
“At profit level, our range of outcomes reflect the impact of an adverse sales mix in both divisions, a weaker Medical performance and the headwinds from our new China manufacturing facility, as well as a c£9m currency headwind.
“Whilst we are targeting H2 underlying PBT to be slightly improved on H1 underlying PBT of £23.2m, a continuation of Q3 sales mix and ASP trends for the remainder of the year, particularly in Medical Spine, would result in H2 underlying PBT being at a broadly similar level as H1.
“As we navigate macroeconomic uncertainty, the Group has strong cost discipline and improvement actions in place. These include Project Vista and our focus on Sales Excellence. Overall, we have confidence in our medium to long-term growth prospects, well invested assets and an improving cash position.”
On the CEO change, Victrex said: “James will succeed Jakob as Chief Executive. He has signed his service contract, however, a definitive start date has not yet been agreed.
“A further update on timing will be announced separately, once finalised. Jakob will step down as Chief Executive once James joins the Board, ensuring an orderly transition.”
Victrex chair Vivienne Cox said: “We are grateful to Jakob for his contribution to Victrex over the past eight years and we wish him well in his eventual retirement.
“The Group is now a more differentiated business, with a culture of innovation, stronger foundations and well-invested global assets to underpin our growth. Our products are aligned to global megatrends and there is significant growth potential to unlock within the Group. With this platform in place, we are well positioned to improve profitability and outcomes …
“I am delighted to welcome James as our Chief Executive. He brings a wealth of significant leadership experience from international manufacturing and engineering based businesses, all of which are directly aligned to Victrex’s end-markets. James was the standout candidate for the role and we will benefit from his proven experience in delivering focused growth strategies, particularly for new and emerging markets, or new technologies.
“During his tenure at AB Dynamics, he has delivered a substantial increase in revenue and operating profit through both organic and inorganic growth initiatives and saw significant growth in market capitalisation. With a proven history of implementing new technologies for commercial success, he has helped to deliver attractive top and bottom-line growth. The Board believes this appointment is a strong fit with Victrex and will serve us well.”
Routh said: “I am excited and proud to be appointed Chief Executive of such a highly regarded global company. The Group has strong growth drivers and very attractive end-market positions. I look forward to working with the Board, senior leadership, the wider Victrex team and our customers and partners, to enhance delivery in our key end-market segments and realise the strong growth potential of the business over the coming years.”
Routh’s base salary will be £600,000. He will participate in the company’s bonus and long-term incentive arrangements in accordance with the Company’s remuneration policy.
Routh is a non-executive director and senior independent director of Tracsis plc, which provides software and technology for the rail and wider transportation industries.