We're in a challenging economic environment, but China remains the fastest growing region for us
Lancashire-based polymer business Victrex reported an uptick in sales volume in its most recent financial year, although profits dipped.
The business is now targeting at least £10m in annual savings as part of its profit improvement plan. In the 12 months ended 30 September 2025, group revenue was up from £291m to £292.7m, with group sales volume jumping 12 per cent to 4,164 tonnes. Underlying profit before tax meanwhile dipped from £59.1m to £46.6m.
As such, the business has launched a profit improvement plan - the full benefits of which are set to be seen in FY 2027. Jakob Sigurdsson, chief executive of Victrex, said: "Amidst a challenging economic environment, Victrex delivered 12 per cent growth in sales volume, driven by VARs and Energy & Industrial.
"Medical continued to be impacted by weaker Spine sales. Like for like pricing was broadly stable in key end-markets outside of VARs and Energy & Industrial, with approximately 80 per cent of the year on year movement from £78/kg to £70/kg due to an adverse sales mix - in both divisions - and currency."
He said that, as expected, medical revenues were lower, while non-spine revenues climbed 7 per cent. Regarding the decrease in profit, he explained: "This primarily reflected a significant currency impact of c£8m and a weaker sales mix, with improved VARs and a softer performance in medical.
“In our new China manufacturing facility, we made good progress to support operational performance, though, as previously indicated, the annualised impact from production start-up reduced profits by £8m, compared to £4m in the prior year.
"FY 2026 will remain loss making for this facility, though volumes will improve from a low base. China remains the fastest growing region for our broader business, with a strong growth pipeline."
The profit improvement plan, Sigurdsson said, is "focusing on a more agile and delivery focused group and targeting at least £10m of annual savings, with the majority of full year benefits in FY 2027".