Our Strategy
Victrex has a clear purpose to bring transformational and sustainable solutions to the performance challenges faced by our customers. We serve several key end markets, with our value proposition to customers being closely aligned to global megatrends such as CO2 reduction, energy efficiency or enhancing clinical benefit.
Our strategy focuses on value creation through PEEK and PAEK materials across our two business areas of Sustainable Solutions and Medical. Our innovative culture and application development know-how seek to deliver performance benefits for our customers and create value for shareholders.
Victrex materials support ‘mission-critical’ applications today as well as being part of the innovation programmes of tomorrow. Our products – which typically replace metal – bring environmental, technical or other benefits. In the Aerospace and Automotive industries for example, this is through lighter, more durable and faster to process materials supporting CO2 reduction, or in Medical, supporting better patient outcomes.
Victrex delivers solutions, not just products. Our addressable market opportunity is at least 5x current levels and we remain confident in our long-term investment case. In a challenging period – and reflecting the appointment of James Routh as our new CEO – we are fully focused on improving our strategy execution to unlock our true potential. Whilst competition in PEEK has been evident for over 20 years, we have seen more competitive pressure within specific end markets. Victrex continues to differentiate to maintain a leadership position – in our strategy, our Go to Market approach and our product offering.
Differentiation also comes through technical service, IP and our unique manufacturing process, with backward integration into key raw materials. Our competitive positioning has been built up over many years and includes know-how and patents, with 5-6% of annual revenues being re-invested in R&D.
Dame Vivienne Cox
Chair
Drive core business
How we performed in FY 2025
- Sales volumes up 12%
- Revenue growth up 1% reflecting Medical Spine weakness and sales mix
- Improved underlying operating cash conversion of 121%
- New China facility in operation
Focus for FY 2026
- Guidance for ‘solid progress’ vs FY 2025
- Profit Improvement Plan to reduce cost to serve
- Increasing sales excellence and leveraging digital solutions
Primary link to risk
- Supply chain
- Strategy execution
- Geo-political and macro-economic environment
Key performance indicators
Revenue growth (reported) %
Revenue growth
1%
Definition
The year on year percentage change in total sales for the Group, in reported currency.
Why it’s important
Revenue growth is the measure chosen to reflect the structural growth opportunities for PEEK across our markets, with above-market growth being the medium-term focus.
Underlying operating cash conversion %
Underlying
operating
cash conversion
121%
Definition
Underlying operating cash conversion is underlying operating cash flow as a percentage of underlying operating profit. Underlying operating cash flow is underlying operating profit before depreciation, amortisation and loss on disposal, less capital expenditure, adjusted for working capital movements.
Why it’s important
Used to assess the business’ ability to convert operating profit into cash effectively. From FY 2025 underlying operating cash conversion is a metric which partly determines bonus outcomes.
Differentiate through innovation
How we performed in FY 2025
- Strong R&D investment at 6% of revenue
- Mega-programme revenue at £9.1m
- First patient implants for US PEEK Knee clinical trial
- Increased ‘Magma’ revenue following technlogical order for Technip FMC (from Petrobras)
Focus for FY 2026
- Improve mega-programme commercialisation
- Progress US clinical trial for PEEK Knee
- Continue support to TechnipFMC for final qualification (Magma composite pipe programme)
Primary link to risk
- Legal and Regulatory Compliance Ethics and Contracts
- Strategy execution
Key performance indicators
R&D spend £m
R&D spend
18.8£m
Definition
The total Research & Development spend that the Group has incurred.
Why it’s important
Research & Development spend at 5%–6% of sales underpins our ability to innovate into new applications, supporting our future growth.
Mega-programme revenue £m
Mega-programme
revenue
9.1£m
Definition
Value of Group sales generated from our five mega-programmes.
Why it’s important
Mega-programme revenue is a measure of the adoption of our five mega-programmes, after a period of investment, development and initial market adoption / commercialisation.
Create & deliver future value
How we performed in FY 2025
- Lower return on capital following first full year of new China plant operation
- Business wins in Advanced Air Mobility (‘AAM’), supporting increased use of VICTREX™ PEEK
- Earnings per share (basic) up 62%
Focus for FY 2026
- Support Magma scale up and grow revenues
- Drive towards commercialisation for PEEK Knee
- Grow earnings per share
Primary link to risk
- Strategy execution
- Geo-political and macro-economic environment
Key performance indicators
Return on invested capital %
Return on
invested capital
9%
Definition
ROIC is defined as profit after tax adjusted to exclude exceptional items net of tax, finance costs and finance income/average adjusted net assets. Adjusted net assets is total equity attributable to the shareholders at the year end excluding cash and cash equivalents, other financial assets, retirement benefit asset, retirement benefit obligations and borrowings.
Average adjusted net assets is adjusted net assets at the start of the year plus adjusted net assets at the end of the year, divided by two.
Why it’s important
Return on capital invested (‘ROIC’) measures the return generated on capital invested by the Group and provides a metric for long-term value creation. The five-year average ROIC is 14%.
Reported earnings per share p
Earnings
per share
32.0p
Definition
Profit after tax divided by the basic weighted average number of shares. This includes the impact of exceptional items.
Why it’s important
Earnings per share measures the overall profitability of the Group and demonstrates how we convert our top-line revenue opportunities into profitable growth for our shareholders.
Underpin through safety, sustainability and capability
How we performed in FY 2025
- Lower recordable injury frequency at 0.16 (lower than OSHA industry average of 1.3 and FY 2024 0.18)
- 80% of products by volume assessed for Lifecycle Analysis, with favourable climate impact vs industry standard
- Achieved 40% of Females in Leadership (FTSE Women Leaders methodology)
Focus for FY 2026
- Embed Safer, Better, Together culture
- Continue exploring options for SBTi decarbonisation plan across all scopes
- Drive product differentiation agenda with customers; complete Lifecycle Analysis plan across 80% of products by volume and revenue
Primary link to risk
- Safety, health and environment
- Recruitment and retention of the right people
- Network and IT systems & security
- Product liability
- Legal and regulatory compliance, ethics and contracts
Key Performance Indicators
OSHA recordable injury rate
OSHA recordable injury rate
0.16
Definition
The US Occupational Safety and Health Administration (‘OSHA’) is the industry standard for recordable injuries. This is based on total number of recordable injuries x 200,000/total number of hours worked (employee & contractor).
Why it’s important
A safe and sustainable business is the highest priority for Victrex. Victrex continues to be better than the industry standard after adopting OSHA reporting in FY 2019.
Hours worked in the community
Hours
2,216
worked in the community
Definition
Total number of hours that Victrex employees have volunteered in community activities.
Why it’s important
Our People pillar within our ESG strategy is key to supporting the communities where we operate (for example in Biodiversity activities), and supporting our talent strategy in recruiting the employees of tomorrow (for example through STEM activities).
KPIs and financial summary
| Title | 2025 | 2024 |
|---|---|---|
| Revenue growth (reported) % | 1 | -5 |
| Underlying operating cash conversion % | 121 | 114 |
| R&D spend £m | 18.8 | 17.5 |
| Mega-programme revenue £m | 9.1 | 10.2 |
| Return on invested capital % | 9 | 10 |
| Earnings per share p (reported) | 32.0 | 19.8 |
| Hours worked in the community | 2,216 | 4,423 |