Victrex reports £19 million underlying pre-tax profit for H1, down 18%, as pricing and mix weigh on margins despite revenue growth.
Victrex posted a 1% rise in first-half revenue to £147.1 million, but underlying profit before tax fell 18% to £19 million due to pricing pressure, adverse mix, and a weak first quarter. Gross margin contracted 240 basis points to 41.7%.
The company recorded £63 million in exceptional items, including a £60.6 million non-cash impairment of its Panjin, China plant, leading to a reported pre-tax loss of £44 million. Management attributed the impairment to operational issues, not weaker demand in China.
Victrex expects fiscal 2026 underlying profit before tax of £42 million to £44 million and is implementing cost cuts and a decentralized operating model. A refreshed strategy will be unveiled in September.