Victrex has issued an encouraging full year pre close update, which confirms a “good finish to 2015”. Overall performance is said to be in line with expectations after a robust fourth quarter. Revenue was 4% ahead of the prior year at £263.5m, slightly ahead of our £260.5m forecast. Volume increased by 19% to 4,217 tonnes driven by the significant momentum in Consumer Electronics, which easily offset the volume decline in Oil & Gas. The growth outlook is described as positive at the start of the new financial year. Despite the bounce of the past week, the shares offer reasonable value in our view in the context of our 2100p TP with the prospect of an update on capital allocation (expect a more generous dividend policy) with the prelims in December.
