Victrex plc. (VCT.L) reported that its profit attributable to owners of the company for six-month ended 31 March 2020 declined to 41.1 million pounds or 47.4 pence per share from 44.2 million pounds or 51.2 pence per share in the prior year.

Reported profit before tax of 49.9 million pounds was 1% down on the prior year, reflecting exceptional items of 2.1 million pounds, being M&A costs principally related to the Group’s China subsidiary investment.

Adjusted earnings per share of 50.0 pence was 7% down from the prior year.

Underlying profit before tax of 52.0 million pounds was down 1% on the prior year , reflecting the improved sales volume performance and the tailwind from currency, offset by a higher cost of sales through under-recovered overhead, due to lower production.

Group sales volume of 1,992 tonnes was 5% up on the prior year, principally reflecting some improvement in Automotive against a weaker comparative, alongside new applications, and continued growth in Medical, and growth in Value Added Resellers.

Group revenue was 151.5 million pounds, 4% up from last year, reflecting an improved volume performance and a slightly weaker mix as several Industrial markets improved and Medical saw modest growth. Group revenue in constant currency was 3% up on the prior year.

Following the decision to delay its project until fiscal year 2021, the company said will continue to see the impact of under-recovered overheads from lower production in fiscal year 2020.

For 2020, the company’s expectations – based on pre-COVID 19 assumptions – are for currency to show a modest tailwind of approximately 6 million pounds-7 million pounds at profit before tax level, although it expects a small proportion of this will be offset by raw material and wage inflation.

The company said its board will defer its interim dividend.

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