Victrex has reported record Q1 volumes with a positive performance in the Industrial business offsetting a slightly weaker performance in Medical. Volume strength should not be extrapolated (interestingly the large Consumer Electronics order played a part in the outperformance) but we expect to increase our FY volume forecast somewhat, implying a 4% to 5% EPS upgrade to FY18 (the statement acknowledges some limited scope for outperformance). For FY19, an increasing currency headwind is likely to temper forecast momentum (we estimate a £10m headwind in that year following a £10m+ benefit in the current year). Overall a strong start to the year and despite recent currency movements, the shares are looking increasingly attractive after a period of s/p weakness with a dividend yield close to 5% inc specials.
