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SHAPING
FUTURE
PERFORMANCE
ANNUAL REPORT 2025
STRATEGICREPORT
1 Strong volumes offset by sales mix,
FXand China start-up; profit
improvement plan underway
2 Victrex at a glance
4 Chair’s statement
6 Our markets and megatrends
8 Our business model
10 Our strategy
12 Overview of strategy
14 Key performance indicators
16 Stakeholder engagement
19 Delivering for our stakeholders
20 Financial review
26 Divisional & end market summary
28 Risk
35 Going concern and viability statement
38 Sustainability report
CORPORATEGOVERNANCE
69 Introduction from the Chair
72 Board of Directors
74 Statement of corporate governance
82 Nominations Committee report
86 Audit Committee report
93 Corporate Responsibility
Committeereport
95 Directors’ remuneration report
117 Directors’ report – other
statutoryinformation
121 Statement of Directors’ responsibilities
in respect of the Annual Report and the
financial statements
122 Independent auditors’ report to
themembers of Victrex plc
FINANCIAL STATEMENTS
129 Consolidated income statement
130 Consolidated statement
ofcomprehensiveincome
131 Balance sheets
132 Cash flow statements
133 Consolidated statement
ofchangesinequity
134 Company statement
ofchangesinequity
135 Notes to the financial statements
SHAREHOLDER INFORMATION
178 Five-year financial summary and
Cautionary note regarding
forward-looking statements
179 Financial calendar
180 Advisors
Cover:
Image of Hybrid Flexible Pipe/Magma
Pipe – based on VICTREX
TM
PEEK
materials – is courtesy of and
copyrighted to TechnipFMC.
Despite a challenging trading environment in FY 2025,
we made further progress in delivering high performance
polymer solutions that help shape future performance
for our customers.
From aerospace, automotive, electronics and energy to
medical, our products are embedded in the ‘mission‑critical’
applications of today such as smartphones, ABS braking
systems and medical devices, as well as supporting the
innovations of tomorrow.
SHAPING FUTURE
PERFORMANCE
STRONG VOLUMES OFFSET BY SALES MIX, FX AND CHINA START‑UP;
PROFIT IMPROVEMENT PLAN UNDERWAY
* Value Added Resellers.
** China start-up impact reflects a full year annualised operating loss of £8m, with a year on year adverse impact of £4m.
1 Alternative performance measures are defined in note 26.
Group sales volume tonnes
4,164 +12%
Group revenue £m
292.7 +1%
Underlying profit before tax
1
£m
46.4 -21%
24 24 24
23 23 23
25 25 25
4,164 292.7 46.4
24 24 24
23 23 23
25 25 25
33.8 32.0 59.56
Dividend per share p (regular)
59.56p flat
Basic earnings pershare p
32.0 +62%
Reported profit beforetax £m
33.8 +44%
23.4
72.5
19.8
70.9
59.56
59.56
3,731
3,598
291.0
307.0
59.1
80.0
KEY POINTS:
STRONG VOLUMES, UP 12%
•
FY 2025 Group volumes 4,164 tonnes (FY 2024: 3,731t) driven
by VARs* and Energy & Industrial
REVENUE UP 1%
•
Average selling price (‘ASP’) £70/kg (FY 2024: £78/kg); c80% of
year-on-year movement due to sales mix and FX; like-for-like
pricing broadly stable in non-VAR/Energy & Industrial end
markets
•
Medical revenue down 5% at £58.8m driven by Spine; 7%
growth in Non-Spine business (including 12% growth in
Non-Implantable Medical)
UNDERLYING PBT DOWN 21% TO £46.4M
ONFX, CHINA COSTS & SALES MIX; H2 PBT
IN LINE WITH H1
•
FY 2025 underlying PBT down 10% in constant FX
•
Reported PBT up 44% at £33.8m after £12.6m
(FY2024:£35.7m) of exceptional items
•
FY 2025 GM in line with guidance at 45.3%; down 90 bps
onmix, £8m impact from new China plant** & FX
•
Improved underlying operating cash conversion
1
of 121%
(FY2024: 114%)
•
FY 2025 net debt £24.8m (FY 2024: £21.1m) (including cash of
£24.2m (FY 2024: £29.3m)) with RCF repaid. Net debt/EBITDA
0.34x at year-end
PROFIT IMPROVEMENT PLAN UNDERWAY
•
Profit Improvement Plan underway targeting at least £10m of
further savings; full year benefits in FY 2027, significantly
building on existing self-help and ‘Go to Market’ improvements
•
Broader review of operations to be implemented in FY 2026,
targeting further commercial, cost and operating efficiencies,
driving business simplification
UPDATED CAPITAL ALLOCATION POLICY:
DIVIDEND MAINTAINED
•
Reflecting all stakeholder interests; new net debt/EBITDA
1
range
of 0.5x-1.0x targeted
•
Dividends maintained vs FY 2024 (proposed final FY 2025
dividend payment 46.14p (FY 2024: 46.14p/share))
•
Dividends maintained at current level, provided net debt/
EBITDA
1
target range not exceeded; excess cash returns available
via share buybacks or special dividends when net debt/EBITDA
1
moves sustainably below 0.5x
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
1Annual Report 2025 – Victrex plc
VICTREX AT A GLANCE
OUR STRATEGIC
ROADMAP
A SUSTAINABLE BUSINESS
PEOPLE
Support ourlocal communities and
inspireSTEM-based careers. Support
aDE&I agenda for our employees.
PLANET
Minimise our use ofresources and our
environmental impact (carbon, water
&waste) and support Biodiversity.
PRODUCTS
Deliver sustainable productsto our
customers which enable environmental
andsocietal benefits (e.g. CO
2
reduction).
Sustainability report
Pages38 to 67
PEOPLE & CULTURE
Safety, Sustainability & Accountability Innovation Service for customers Delivering with speed
OUR VALUES
Passion Innovation Performance
STRATEGIC IMPERATIVES
(MUST WINS)
DRIVE – core business
DIFFERENTIATE – through innovation
CREATE & DELIVER – future value
UNDERPIN – safety, quality, sustainability
STRATEGY
A world leader in value creation through
PEEK&PAEK based polymer solutions
OUR
PURPOSE
We bring transformational
and sustainable solutions
that address world material
challenges every day
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
2 Victrex plc – Annual Report 2025
Note: Source data available on request.
# Sustainable products are defined as those which offer quantifiable environmental or societal benefit. These are primarily in Automotive, Aerospace
(supporting CO
2
reduction) and Medical (supporting improved patient outcomes). Some applications are also in Energy & Industrial (e.g. wind and
renewable energy applications) and Electronics (supporting energy efficiency, e.g. home appliances). Volumes from Oil & Gas are excluded, as are
ValueAdded Resellers volumes currently, due to the lack of full clarity on exact end market destinations. Sustainable products represented 53%
ofGrouprevenues in FY 2025 (FY 2024: 56%).
## The Group targets 5–6% of Group revenues to be spent on R&D expenditure, being a leading indicator of the Group’s ability to innovate into new
applications, supporting future growth.
### For all countries where the market exists via either retail supply contracts or offset by certificated EACs. This applies to all future references to 100%
electricity from renewable sources throughout this report.
OUR SOLUTIONS OUR BUSINESS
AEROSPACE
20,000+
aircraft flying with Victrexsolutions
ENERGY & INDUSTRIAL
75m+
VICTREX™ PEEK seal rings in use today
100m+
machines operate using Victrex solutions
AUTOMOTIVE
500m+
VICTREX™ PEEK based applications in use
ELECTRONICS
4bn+
mobile devices using APTIV™ film
MEDICAL
15m+
implanted medical devices using
VICTREX™PEEK to date
OUR PURPOSE: BRINGING
TRANSFORMATIONAL
&SUSTAINABLE SOLUTIONS
Victrex’s products are aligned to global megatrends, supporting CO
2
reduction and energy efficiency or
providing clinical benefit in a wide range of everyday applications. VICTREX™ PEEK polymers typically replace
metal with alighter, more durable and more sustainable alternative. As a market leader, through our core
product portfolio, or our more differentiated and ‘semi-finished’ products, we develop new uses for VICTREX™
PEEK, creating new markets, delivering solutions for our customers and driving value for our investors.
1,100+
employees globally
40+
countries served
53%
of revenues from sustainable products
#
c.5%–6%
of sales invested inR&D
##
100%
of our global electricity is from renewable sources
###
(wherethemarket exists; seepage 57)
30–40%
typical weight saving usingVICTREX
TM
PEEK vs metal
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
3Annual Report 2025 – Victrex plc
CHAIR’S STATEMENT
ADDRESSING OUR
CHALLENGES – DELIVERING
OUR OPPORTUNITIES
DEAR SHAREHOLDER,
OVERVIEW
Victrex and the wider chemical industry
continued to see a number of significant
challenges during FY 2025, including
variable end market demand, competition
and geo-political uncertainty. Despite these
challenges, we saw strong progress in sales
volumes, which grew 12%, including a
record annual increase in our sales pipeline.
Although volumes improved, the Group
sawlower profitability partly due to the
external environment, including currency,
aswell as Company specific factors like
start-up costs in our China manufacturing
facility. Further information isshown in the
Financial review on pages20 to 27.
IMPROVING OUR PERFORMANCE
Through incremental cost actions in
FY2026and a Profit Improvement Plan –
tobe implemented by our new CEO and
targeting at least £10m of cost savings – the
Board is fully focused on enhancing
profitability and financial performance. This
will include targeted actions to simplify our
business, on cost of manufacture and our
overhead base.
With our major investment phase now
behind us, the stronger foundations we have
built over recent years – in people, assets
and capability – will help to underpin our
future. These include increased digitalisation
and an enhanced Sales team structure,
providing a stronger customer facing platform
to deliver growth. The Board, our Management
Team and our employees are all aligned to
unleashing and unlocking the inherent value
in our business.
OUR PURPOSE: BRINGING
TRANSFORMATIONAL AND
SUSTAINABLE SOLUTIONS
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 CO
2
reduction, energy
efficiency or enhancing clinical benefit.
Our products bring environmental, technical
or medical benefits. In the Aerospace and
Automotive industries for example, this is
through lighter, more durable and faster to
process materials supporting CO
2
reduction,
or in Medical, supporting better patient
outcomes. Victrex materials support
‘mission-critical’ applications today as well
as being part of the innovation programmes
of tomorrow. Further information is in the
CEO’s review ofstrategy on pages 12 and 13.
SAFETY: EMBEDDED IN
OURCULTURE
Victrex has a Zero Accidents, Zero Incidents
goal across our global organisation. Our
recordable injury frequency rate has reduced
by 77% since FY 2021, thanks to a significant
focus on process safety. During the year,
wemaintained a strong safety record, with
ourrecordable injury frequency rate (‘RIFR’)
slightly improving to 0.16 (FY2024: 0.18),
better than the OSHA industry average (1.5).
Victrex also secured the Chemical Industries
Association (‘CIA’) Process Safety
Leadershipaward.
STRATEGY & INVESTMENT CASE:
FOCUS ONIMPROVED EXECUTION
Victrex’s 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 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 from 1 January 2026 – we are fully
focused on improving our strategy execution
to unlock our true potential.
INCREASING OUR
DIFFERENTIATION
Whilst competition in PEEK has been
evidentfor over 20 years, FY 2025 saw
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. Our portfolio includes
our core polymer business and more
semi-finished and differentiated products
like APTIV™ film and our mega-programmes.
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
THROUGH INCREMENTAL
COST ACTIONS AND A
PROFIT IMPROVEMENT
PLAN, THE BOARD IS FULLY
FOCUSED ON ENHANCING
PROFITABILITY, AS WELL
ASDELIVERING ON OUR
LONG‑TERM GROWTH
OPPORTUNITIES.
THE STRONGER
FOUNDATIONS WE HAVE
BUILT OVER RECENT YEARS
– IN PEOPLE, ASSETS AND
CAPABILITY – WILL HELP TO
UNDERPIN OUR FUTURE.
Dr Vivienne Cox DBE
Chair
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
4 Victrex plc – Annual Report 2025
includes know-how and patents. We invest
5–6% of sales every year to support R&D.
STRONG SUSTAINABILITY
CREDENTIALS
Our Sustainability framework focuses
onthree pillars: People, Planet & Products.
Theenvironmental and societal benefits of
VICTREX™ PEEK products will continue to
increase in importance, as the need for CO
2
reduction, energy efficiency or improved
patient outcomes becomes more critical.
During the year, we were able to demonstrate
that the climate impact of VICTREX™ PEEK
remains favourable versus the industry average,
based on validated Lifecycle Analysis (‘LCA’).
Our People agenda includes employee
volunteering for Biodiversity projects where
we operate, Science, Technology, Engineering
& Maths (‘STEM’) activities, which we have
demonstrated can help our future talent
pipeline, and a strong apprenticeship
programme. Further detail isshown in the
Sustainability report on pages 38 to 67.
CAPITAL ALLOCATION &
DIVIDENDS
We focus on growth investment first and
foremost, with investment in R&D, incremental
M&A or to support our strategy.
With the conclusion of our major investment
phase last year, including upgrades to our
UK assets and our new China facility, we see
good medium to long-term prospects for
shareholder returns, as profits and cash flow
improve. Alongside our Profit Improvement
Plan, we remain focused on retaining
balance sheet strength.
As a result, the Board has, taking account of
all stakeholder interests, set a new target for
net debt / EBITDA of 0.5x – 1.0x, with
dividends maintained at FY2024 levels.
Additional term debt will be secured prior to
payment of our FY 2025 final dividend
(proposed at 46.14p/share) in February
2026. Dividends will be maintained at these
levels provided the net debt / EBITDA range
is not exceeded. It makes our updated
capital allocation policy more sustainable for
our business, particularly when partnering
with major customers, who value balance
sheet strength. The option of returning
excess cash via share buybacks or special
dividends remains, once net debt / EBITDA
moves sustainably below 0.5x.
Further information is shown in the Financial
review on pages 20 to 27.
OUR BOARD: NEW CEO
During the year, Jakob Sigurdsson signalled
his intention to retire as CEO. We thank
Jakob for his passion and contribution to
theGroup over the last eight years. Our
foundations are stronger and our focus is
very clearly on improving execution.
I am delighted to welcome James Routh
whojoins us as CEO on 1January 2026, after
a rigorous recruitment process. James joins us
from AB Dynamics plc, where he delivered
significant revenue and profit growth. His
experience in automotive and aerospace
companies is also aligned to Victrex and our
significant growth opportunities. James will
lead our Profit Improvement Plan in FY 2026.
Jane Toogood, who chaired our Corporate
Responsibility (‘CR’) Committee, also
stepped down as a Non-executive Director in
February 2025, after nine years on the Board.
We thank Jane for her many contributions to
Board debate and governance. We continue
to place a strong emphasis on governance,
as well as ensuring the Board has the skills
and experience to support delivery of our
strategy. Biographies can be found on
pages72 and 73.
PEOPLE, CULTURE, DIVERSITY,
EQUITY & INCLUSION
We continue to support our employees
through training, flexible working and
supportive policies. In FY 2026 we will
conduct another full Employee Engagement
Survey, with our 2025 UK Engagement
Survey showing a further improvement
to76%. Victrex was also included in
TheSunday Times Best Places to Work
andwas named as the Company of the Year
by the Chemical Industries Association (‘CIA’).
Asummary of our employee engagement
activities, including the work of our
Workforce Engagement Non-executive
Director, is shown on page 81.
In our Equal Opportunities, Diversity, Equity
& Inclusion (‘DE&I’) journey, the Group
made good progress thisyear. We now have
40% of our senior leadership group
comprising females, as part of our females
in leadership target of40% by 2030 (based
on FTSE Women Leaders methodology). Our
employee resource groups (‘ERGs’) reflect
the international nature of our operations.
This very challenging period for the Group
has underlined the resilience of our global
employee base. With the absence of an
annual bonus or long-term incentives since
FY 2022, this year’s partial reward reflected
the achievement of strategic and non-profit
metrics (including strong cash conversion)
and the importance of employee retention,
reflected in our share-based long-term
incentives. The Remuneration Committee
used its discretion to reduce bonus payments
by one third for the Executive Directors and
VMT members. Further detail is shown in
the Remuneration Committee report on
pages 95 to 116. On behalf of the Board,
Iwould like to thank every one of Victrex’s
employees for their continued contribution
and adaptability to drive change and
improve our performance.
OUTLOOK
Whilst we remain mindful of macro-economic
and industry challenges, we are targeting
solid progress vs FY 2025, with an H2
weighting to reflect seasonality and the
higher FX headwind in H1 2026.
Although FY 2026 will be a transitional year,
our foundations are strong, with a
differentiated product portfolio across key
end markets and an addressable market
fivetimes current levels, offering significant
long-term growth in demand for PEEK.
Wewill create a simpler and focused growth
business, improving cost to serve and driving
significant value creation for all stakeholders.
Dr Vivienne Cox DBE
Chair
2 December 2025
SECURING OUR
FUTURE THROUGH
TALENT: Victrex has a
strong apprenticeship
programme which
supports our talent
agenda, with 48
current apprentices.
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
5Annual Report 2025 – Victrex plc
OUR MARKETS AND MEGATRENDS
DIVERSE GROWTH
OPPORTUNITIES
We have long-term megatrends in our favour. Our sustainable products support
CO
2
reduction, energy efficiency or clinical outcomes, with adiverse mix of growth
opportunities across our end markets. We differentiate by providing solutions for
customers, not just products, creating new markets through our innovation know-how.
END MARKETS MARKET OPPORTUNITY MEGATRENDS OPPORTUNITY FOR VICTREX™ PEEK
SUSTAINABLE SOLUTIONS
AEROSPACE
(TRANSPORTMARKETS
24%OF SALES VOLUME)
49,000
new passenger and
freight aircraft by 2044
Source: Airbus
FLY LIGHTER & REDUCE FUEL COST
•
Lighter weight and CO
2
reduction withmore efficient
manufacturing using PEEK, PAEK and composites mean fuel
saving– a strategic imperative for the Aerospace industry.
•
Opportunities to support reduction ofplane delivery backlogs
through more efficientmanufacturing.
10X PEEK CONTENT INCREASE PER PLANE
•
Commercialisation of lighter structural composite parts
(wing and fuselage structures).
•
Part of Airbus Clean Sky 2 programme & Advanced Air Mobility
(‘AAM’) programmes.
•
Opportunity to move from c0.5 tonne to over 5 tonnes of PEEK
per plane over the longer term (c.10x content increase).
AUTOMOTIVE
(TRANSPORTMARKETS
24%OF SALES VOLUME)
>200g
potential PEEK/car on EV platforms
(increase from current 11g average over the
long term, based on 800V electric vehicle)
CO
2
REDUCTION, DURABILITY ANDELECTRIFICATION
•
Fuel efficiency, CO
2
reduction, safety andreliability
improvements resulting from consumer and regulatory trends.
•
Transition from internal combustion engines (‘ICE’) to electric
vehicles (‘EVs’) as electrification is mandated in manyregions.
INCREASE PEEK CONTENT PER VEHICLE
•
Potential of >200g PEEK per car (long-termopportunity),
based on EVs vs industry average of 11g of PEEK/car today.
•
Multiple opportunities in EVs with business wins.
•
Majority of existing ICE applications translate across EVs.
ELECTRONICS
(11%OFSALESVOLUME)
38bn+
connected devices
by2030
Source: GSMA Intelligence
THINNER & SMARTER DEVICES
•
Increased functionality of smartphones and devices.
•
Industry trends for mobile devices that are thinner and smarter
(whilst performance requirements continue to increase).
•
Increase in Artificial Intelligence (‘AI’) and new technologies
suchas 5G or 6G.
ENERGY EFFICIENCY AND THERMAL MANAGEMENT
•
Broadening range of applications: semiconductors, mobile
devices and home appliances.
•
AI opportunities.
•
Strong capability of PEEK in durability andthermalmanagement.
•
Metal replacement supporting energy efficiency.
ENERGY & INDUSTRIAL
(17%OF SALES VOLUME)
27%
forecast increase in
energy use by 2040
Source: IEA
ENERGY TRANSITION
•
Higher performance requirements from exploration into
extremeenvironments, as well as the energytransition.
•
More efficient manufacturing processes create more data
andconnectivity requirements in Industrial end markets.
PERFORMANCE IN TRADITIONAL & NEW ENERGY
•
Continuing opportunities in oil & gas exploration and processing
equipment, alongside renewable or ‘new’ energy.
•
Alternative solutions for metal replacement in traditional energy;
Magma Composite Pipe/Hybrid Flexible Pipe.
•
Drive new application areas in Industrial, including food, robotics
and opportunity forPEEK in response to PFAS regulations.
VAR
VALUE ADDED RESELLERS
(43% OF SALES VOLUME)
VARs form a key part of our route to market. VARs
compound or process VICTREX™ PEEK into stock shapes
for onward processing, serving multiple end markets.
Victrex engages in strategic or development relationships with end customers. VARs then supply ‘specified’ VICTREX™ PEEK
grades to tier 1 or end customers in several industrial end markets (e.g. Automotive, Energy & Industrial), thereby forming
akey part of global supply chains. Speed, security of supply and product quality are key requirements.
MEDICAL
MEDICAL
(5%OFSALESVOLUME
&20%OFREVENUES)
6.5% CAGR
forecast for global medical device
industry revenue growth 2025–32
Source: Alphasense
AGEING GLOBAL POPULATION
•
People are living longer: focus on maintaining quality oflife
andactivity levels, driving better patient outcomes.
•
Greater demand for alternative and non-metal solutions
inNon-Spine.
•
Growing concern about the effects of metal-based implantable
materials, e.g. cobalt chrome and PFAS materials.
SUPPORT IMPROVED PATIENT OUTCOMES
•
Significant growth in Non-Spine, e.g CMF, Active Implantable
devices, Cardio applications. Differentiation through Trauma
andKnee applications.
•
Leveraging clinical data to drive PEEK adoption.
•
3D printed Porous PEEK approved to support
greater bone in-growth in spinal applications.
VAR
Medical
20% of
revenues
Sustainable
Solutions
80% of
revenues
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
6 Victrex plc – Annual Report 2025
5x
Victrex’s assessment of the addressable market for
PEEK polymer applications vs current levels
Visit www.victrexplc.comto seehow we are shaping
future performance across our end markets
END MARKETS MARKET OPPORTUNITY MEGATRENDS OPPORTUNITY FOR VICTREX™ PEEK
SUSTAINABLE SOLUTIONS
AEROSPACE
(TRANSPORTMARKETS
24%OF SALES VOLUME)
49,000
new passenger and
freight aircraft by 2044
Source: Airbus
FLY LIGHTER & REDUCE FUEL COST
•
Lighter weight and CO
2
reduction withmore efficient
manufacturing using PEEK, PAEK and composites mean fuel
saving– a strategic imperative for the Aerospace industry.
•
Opportunities to support reduction ofplane delivery backlogs
through more efficientmanufacturing.
10X PEEK CONTENT INCREASE PER PLANE
•
Commercialisation of lighter structural composite parts
(wing and fuselage structures).
•
Part of Airbus Clean Sky 2 programme & Advanced Air Mobility
(‘AAM’) programmes.
•
Opportunity to move from c0.5 tonne to over 5 tonnes of PEEK
per plane over the longer term (c.10x content increase).
AUTOMOTIVE
(TRANSPORTMARKETS
24%OF SALES VOLUME)
>200g
potential PEEK/car on EV platforms
(increase from current 11g average over the
long term, based on 800V electric vehicle)
CO
2
REDUCTION, DURABILITY ANDELECTRIFICATION
•
Fuel efficiency, CO
2
reduction, safety andreliability
improvements resulting from consumer and regulatory trends.
•
Transition from internal combustion engines (‘ICE’) to electric
vehicles (‘EVs’) as electrification is mandated in manyregions.
INCREASE PEEK CONTENT PER VEHICLE
•
Potential of >200g PEEK per car (long-termopportunity),
based on EVs vs industry average of 11g of PEEK/car today.
•
Multiple opportunities in EVs with business wins.
•
Majority of existing ICE applications translate across EVs.
ELECTRONICS
(11%OFSALESVOLUME)
38bn+
connected devices
by2030
Source: GSMA Intelligence
THINNER & SMARTER DEVICES
•
Increased functionality of smartphones and devices.
•
Industry trends for mobile devices that are thinner and smarter
(whilst performance requirements continue to increase).
•
Increase in Artificial Intelligence (‘AI’) and new technologies
suchas 5G or 6G.
ENERGY EFFICIENCY AND THERMAL MANAGEMENT
•
Broadening range of applications: semiconductors, mobile
devices and home appliances.
•
AI opportunities.
•
Strong capability of PEEK in durability andthermalmanagement.
•
Metal replacement supporting energy efficiency.
ENERGY & INDUSTRIAL
(17%OF SALES VOLUME)
27%
forecast increase in
energy use by 2040
Source: IEA
ENERGY TRANSITION
•
Higher performance requirements from exploration into
extremeenvironments, as well as the energytransition.
•
More efficient manufacturing processes create more data
andconnectivity requirements in Industrial end markets.
PERFORMANCE IN TRADITIONAL & NEW ENERGY
•
Continuing opportunities in oil & gas exploration and processing
equipment, alongside renewable or ‘new’ energy.
•
Alternative solutions for metal replacement in traditional energy;
Magma Composite Pipe/Hybrid Flexible Pipe.
•
Drive new application areas in Industrial, including food, robotics
and opportunity forPEEK in response to PFAS regulations.
VAR
VALUE ADDED RESELLERS
(43% OF SALES VOLUME)
VARs form a key part of our route to market. VARs
compound or process VICTREX™ PEEK into stock shapes
for onward processing, serving multiple end markets.
Victrex engages in strategic or development relationships with end customers. VARs then supply ‘specified’ VICTREX™ PEEK
grades to tier 1 or end customers in several industrial end markets (e.g. Automotive, Energy & Industrial), thereby forming
akey part of global supply chains. Speed, security of supply and product quality are key requirements.
MEDICAL
MEDICAL
(5%OFSALESVOLUME
&20%OFREVENUES)
6.5% CAGR
forecast for global medical device
industry revenue growth 2025–32
Source: Alphasense
AGEING GLOBAL POPULATION
•
People are living longer: focus on maintaining quality oflife
andactivity levels, driving better patient outcomes.
•
Greater demand for alternative and non-metal solutions
inNon-Spine.
•
Growing concern about the effects of metal-based implantable
materials, e.g. cobalt chrome and PFAS materials.
SUPPORT IMPROVED PATIENT OUTCOMES
•
Significant growth in Non-Spine, e.g CMF, Active Implantable
devices, Cardio applications. Differentiation through Trauma
andKnee applications.
•
Leveraging clinical data to drive PEEK adoption.
•
3D printed Porous PEEK approved to support
greater bone in-growth in spinal applications.
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
7Annual Report 2025 – Victrex plc
WHAT WE DO
1. A DIFFERENTIATED & SUSTAINABLE BUSINESS MODEL
Ourproducts offer a unique combination ofproperties, supporting CO
2
reduction
in Aerospace & Automotive through lightweighting and faster processing, and
improving patient outcomes in medical devices. Beyond manufacturing VICTREX™
PEEK polymers, we also differentiate through semi-finished and differentiated
products such as APTIV™ film, composite tape and pipe, helping to deliver
solutions for customers. With our People, Planet & Product-based ESG pillars,
weseek to minimise our use of resources (energy, carbon and water).
4. WE HAVE MANUFACTURING & PRODUCT DIFFERENTIATION
Our strategy and unique manufacturing process (Type 1 PEEK) differentiate us from
competitors, with >200 patents in place or pending, and know-how helping us to
manufacture the widest range of PEEK products, including Type 2 PEEK (UK & new
China facilities). Safety is our highest priority, with efficient and well-invested assets.
2. WE ALIGN TO GLOBAL MEGATRENDS; WE DELIVER SOLUTIONS
We identify megatrends, such as CO
2
reduction or energy efficiency, where our
polymers can offer a performance advantage vs metal or incumbent materials.
We‘hunt’ new use cases for VICTREX™ PEEK, understanding customer needs
anddelivering solutions for them, in turn creating new markets for our products.
5. WE DRIVE COST EFFICIENCY & CASH GENERATION
Our robust financial profile enables us to invest (capex or M&A) in support
ofourstrategy. Costefficiency and productivity are key, as we focus on cost
ofmanufacture, supporting cost to serve. With high value and differentiated
products, weseek to retain a robust balance sheet. After a period of high
investment, cash generation is expected to show continued improvement.
3. WE HAVE A STRONG CULTURE OF INNOVATION
Our culture is built on innovation, with a focus onPEEK/PAEK and the high
performance materials area,beyondsimply manufacturing polymers. We have
ahigh level oftechnical and digital capability, with investment in Research &
Development representingc.5–6% of annual revenues, and increasing digital
solutions to support our business and our customers. We work withpartners to
bring newand enhanced products toour customers, shaping future performance.
6. WE DELIVER SALES AND TECHNICAL DIFFERENTIATION
Our Sales & Technical Service teams help us differentiate with customers through
validation and certification in critical applications. We have strong Regulatory
&Quality teams, partnering with customers in development of new applications
and solutions, helping to drive VICTREX™ PEEK adoption. Our Go to Market
approach includes increasing digital solutions for customers (for example in digital
modelling for an application).
UN SUSTAINABLE DEVELOPMENT GOALS (‘SDGs’)
We are aligned to the UN’s Sustainable Development Goals 2030, including
validation of decarbonisation goals for the Science Based Targets initiative (‘SBTi’).
SUPPORTED BY
OUR PEOPLE &CAPABILITY
Over 1,100 talented employees wake up every day focusing on selling more
VICTREX™ PEEK and partneringwith customers to shape future performance.
OUR SUPPLIERS & PARTNERS
We are the only PEEK manufacturer with upstream integration intokey
rawmaterials, supporting long-term security of supply for customers.
Key to strategy
Drive core business
Differentiate through innovation
Create and deliver futurevalue
Underpin through safety,
sustainabilityandcapability
WHO WE ARE
Victrex was formed in 1993 following
a management buy-out from ICI, with
VICTREX™ PEEK polymers having
their roots in the1970s when the
product was developed.
Today, we are a world leader in PEEK,
serving customers in 40 countries and
with a strong culture of innovation.
Every day, millions of people rely
onapplications which contain our
sustainable products and materials,
from smartphones, aeroplanes and
cars to energy production and
medicaldevices.
SHAPING FUTURE
PERFORMANCE
Our strategy, as a world leader in
value creation through PEEK & PAEK
polymer materials, is todevelop
andmanufacture products which
enable environmental & societal
benefits for our customers and
society. Our products offer
lightweighting, durability, faster
processing and clinical outcomes,
which help to shape future
performance for our customers.
SUSTAINABLE BY
NATURE AND DESIGN
OUR BUSINESS MODEL
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
8 Victrex plc – Annual Report 2025
WHAT WE DO
1. A DIFFERENTIATED & SUSTAINABLE BUSINESS MODEL
Ourproducts offer a unique combination ofproperties, supporting CO
2
reduction
in Aerospace & Automotive through lightweighting and faster processing, and
improving patient outcomes in medical devices. Beyond manufacturing VICTREX™
PEEK polymers, we also differentiate through semi-finished and differentiated
products such as APTIV™ film, composite tape and pipe, helping to deliver
solutions for customers. With our People, Planet & Product-based ESG pillars,
weseek to minimise our use of resources (energy, carbon and water).
4. WE HAVE MANUFACTURING & PRODUCT DIFFERENTIATION
Our strategy and unique manufacturing process (Type 1 PEEK) differentiate us from
competitors, with >200 patents in place or pending, and know-how helping us to
manufacture the widest range of PEEK products, including Type 2 PEEK (UK & new
China facilities). Safety is our highest priority, with efficient and well-invested assets.
2. WE ALIGN TO GLOBAL MEGATRENDS; WE DELIVER SOLUTIONS
We identify megatrends, such as CO
2
reduction or energy efficiency, where our
polymers can offer a performance advantage vs metal or incumbent materials.
We‘hunt’ new use cases for VICTREX™ PEEK, understanding customer needs
anddelivering solutions for them, in turn creating new markets for our products.
5. WE DRIVE COST EFFICIENCY & CASH GENERATION
Our robust financial profile enables us to invest (capex or M&A) in support
ofourstrategy. Costefficiency and productivity are key, as we focus on cost
ofmanufacture, supporting cost to serve. With high value and differentiated
products, weseek to retain a robust balance sheet. After a period of high
investment, cash generation is expected to show continued improvement.
3. WE HAVE A STRONG CULTURE OF INNOVATION
Our culture is built on innovation, with a focus onPEEK/PAEK and the high
performance materials area,beyondsimply manufacturing polymers. We have
ahigh level oftechnical and digital capability, with investment in Research &
Development representingc.5–6% of annual revenues, and increasing digital
solutions to support our business and our customers. We work withpartners to
bring newand enhanced products toour customers, shaping future performance.
6. WE DELIVER SALES AND TECHNICAL DIFFERENTIATION
Our Sales & Technical Service teams help us differentiate with customers through
validation and certification in critical applications. We have strong Regulatory
&Quality teams, partnering with customers in development of new applications
and solutions, helping to drive VICTREX™ PEEK adoption. Our Go to Market
approach includes increasing digital solutions for customers (for example in digital
modelling for an application).
UN SUSTAINABLE DEVELOPMENT GOALS (‘SDGs’)
We are aligned to the UN’s Sustainable Development Goals 2030, including
validation of decarbonisation goals for the Science Based Targets initiative (‘SBTi’).
SUPPORTED BY
OUR PEOPLE &CAPABILITY
Over 1,100 talented employees wake up every day focusing on selling more
VICTREX™ PEEK and partneringwith customers to shape future performance.
OUR SUPPLIERS & PARTNERS
We are the only PEEK manufacturer with upstream integration intokey
rawmaterials, supporting long-term security of supply for customers.
HOW WE CREATE VALUE
FOR CUSTOMERS
By partnering with customers in the
development of new applications, we
bring superior products that deliver
long-term performance benefits vs
incumbent materials.
Read more on pages 16 and 17
FOR EMPLOYEES
Investing in skills, apprenticeships and
training brings significant opportunity
for development. Performance-based
reward drives ahigh retention rate.
Read more on pages 16 and 17
FOR INVESTORS
Continued innovation and opening up
new revenue streams support returns
and cash generation.
Read more on pages 16 and 17
FOR COMMUNITIES
Engagement with our local
communities enables us to partner
onarange of social responsibility
andenvironmental programmes.
Read more on pages 16 and 17
FOR SOCIETY & THE PLANET
Our purpose is to bring
transformational & sustainable
solutions, with products which
canenable environmental
orsocietalbenefits.
Read more on pages 16 and 17
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
9Annual Report 2025 – Victrex plc
OUR STRATEGY
A WORLD LEADER IN VALUE
CREATION THROUGH PEEK
& PAEK POLYMERS
PEEK POLYMER INVENTED
BYICIIN1978
VICTREX: THE FIRST
TOCOMMERCIALISE
PEEKPOLYMERS
•
Millions of people rely on
ourdifferentiated products
&applications based on
VICTREX™PEEK every day
DIFFERENTIATE: APPLICATION,
DEVELOPMENT, EXPERTISE
•
We deliver solutions and help customers overcome complex design
and engineering challenges. We accelerate the development of
innovative and sustainable applications across key end markets
INVESTMENT IN INNOVATION
•
c.5–6% of annual
sales invested in R&D
•
Polymer capacity
•
Composite solutions
•
Medical components
•
Polymer Innovation
Centre
•
Digital application &
chemistry solutions
UNDERPIN
•
Safety: Safer, Better, Together
•
Quality: in everything we do
•
Sustainability: People, Planet & Products
•
Talent agenda
•
Robust financial position
CREATE: TRANSFORMATIONAL SOLUTIONS
•
Innovation partnerships and
mega-programmes addressing
global megatrends
DRIVE CORE
BUSINESS:
FOCUS ON PEEK
•
We pioneer new and differentiated
VICTREX™ PEEK based products
andsolutions
•
Polymer grades for engineering
needs: granules, powders and
micropellets...
•
...into PEEK films, PEEKfibres and
thermoplastic composite tapes
SECURITY OFSUPPLY
•
Victrex has an integrated supply
chain and the highest PEEK
capacity to global quality standards
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
10 Victrex plc – Annual Report 2025 11Annual Report 2025 – Victrex plc
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
10 Victrex plc – Annual Report 2025 11Annual Report 2025 – Victrex plc
DEAR SHAREHOLDER,
STRONGER FOUNDATIONS
TOSUPPORT DELIVERY
With the conclusion of our major strategic
investment phase last year, those investments
– in people, assets, capability and technology
– will be expected to show a return and help
us unleash our full potential.
Whilst results were in line with our latest
guidance, our FY 2025 financial performance
was weaker compared to the prior year (details
on page 20). Throughout this very challenging
period for Victrex and the global chemical
industry, we have kept the long-term
horizon in sight, whilst addressing our
short-term challenges.
Through enhancing our Go to Market
approach, our sales and R&D organisation
and increasing digitalisation to serve our
customers, we now have stronger
foundations to support delivery.
PROFIT IMPROVEMENT PLAN
Whilst cost control featured high on our
agenda during this challenging period,
wewill need to go further in FY 2026.
In what will be a transitional year, with
aCEO succession, our focus will be on
incremental improvement actions to support
delivery and ultimately improve profitability.
We are targeting at least £10m of annual
cost savings, to be delivered by the end of
FY 2027, with initial benefits to be realised
in FY 2026.
A simpler portfolio, improving cost of
manufacture and targeted efficiency
opportunities in our overheads are areas in
focus. Navigating the current external
environment, whilst not sacrificing long-term
opportunities, is the only way to ensure the
value proposition for the use of VICTREX™
PEEK remains strong.
INVESTMENT CASE & VALUE
PROPOSITION
•
We are a world leader and the first
mover in PEEK & PAEK polymers
withstrong innovation credentials and
differentiated products; we have the
broadest PEEK portfolio and extensive
performance data on PEEK.
•
Addressable market 5x current
levels: we hunt for new use cases for
VICTREX™ PEEK, with a track record
ofdelivering performance benefits in
‘mission-critical’ applications, as well as
being part of tomorrow’s innovations.
•
We have a culture of innovation,
helping us to create new markets and
use cases for VICTREX™ PEEK, with R&D
investment at 5-6% of revenues (pa),
supporting our strong growth pipeline.
•
We are aligned to global megatrends
like CO
2
reduction. Sustainable products
form 53% of Group revenues.
•
We have a unique and differentiated
manufacturing process – which
supports our competitive differentiation.
•
Our financial profile will continue
toimprove as investments are now in
place. We maintain attractive returns
(14% average return on invested capital
(ROIC) over five years) and strong
cashconversion.
DIFFERENTIATING OUR BUSINESS
With more competition in some of our less
differentiated end markets this year, we are
increasing the differentiation and innovation
that Victrex has been known for:
•
Enhancing customer experience: our
sales and R&D teams are operating with
greater regional focus to unlock new
opportunities and serve customers.
•
Increasing digitalisation: greater use
of digital tools for Sales and R&D teams
(e.g. digital modelling) and leveraging
our ERP system to deliver solutions for
customers (not just products).
•
Improving the speed of our
innovation and technical service:
akey credential of Victrex has always
been how we support customers with
technical service.
OUR LONG‑TERM VALUE
PROPOSITION – WITH
MARKET LEADING
PRODUCTS WHICH
ENABLEENVIRONMENTAL,
TECHNICAL OR SOCIETAL
PERFORMANCE BENEFITS
– REMAINS STRONG DESPITE
THE TOUGH EXTERNAL
ENVIRONMENT.
OUR FOCUS IS ON
INCREMENTAL PROFIT
IMPROVEMENT ACTIONS
TOADDRESS CURRENT
CHALLENGES, INCLUDING
STRATEGY EXECUTION,
PORTFOLIO SIMPLIFICATION
AND COSTREDUCTION.
Jakob Sigurdsson
CEO
STRONGER FOUNDATIONS
IN PLACE; FOCUSED ON
PROFIT IMPROVEMENT
OVERVIEW OF STRATEGY
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
12 Victrex plc – Annual Report 2025
STRATEGY AND STRATEGIC
PRIORITIES
We are restless to improve our
financialperformance.
Whilst our strategy as a world leader
invalue creation through PEEK and PAEK
polymers remains appropriate, we will
blendour position as a product leader
withimproved operational excellence
andcustomer intimacy.
Addressing our short-term challenges
todrive our long-term opportunities also
means leveraging our differentiated
strategy – with a core polymer business,
semi-finished products like film, composite
tape or pipes, and a selected number of
potentially game-changing mega-programmes.
Our strategic priorities are shown on
pages16 and 17 with each and every one of
ouremployees aligned to our ‘Must Win’
agenda, whether that be in our customer
facing, operations or support functions.
FY 2025 IN REVIEW & THE ROAD
TO IMPROVED DELIVERY
Despite a weaker profit performance, the
early benefits of our Go to Market approach
and Project Vista programme started to be
realised. Sales volume increased by 12% and
our sales pipeline saw record growth of
£62m, or by 18% based on Mature
Annualised Revenues.
Headwinds to profitability included a slower
start-up in our China facility, a weaker
performance in Medical Spine, competitive
pressure in our VAR end market, an adverse
sales mix and a sizeable currency headwind.
Notable highlights included an award of
atechnological order contract by Petrobras
forTechnipFMC, supporting our ‘Magma’
mega-programme and the sizeable volume
potential for VICTREX™ PEEK based composite
pipe (8 tonnes of VICTREX™ PEEK per
kilometre of pipe). We also secured new
business in Aerospace Composites within
the Advanced Air Mobility (‘AAM’) sector.
Delivery through our improvement actions
and by increasing differentiation compared
to our competitors remains key.
UNDERPIN THROUGH SAFETY,
QUALITY, SUSTAINABILITY AND
CAPABILITY
Safety is integral to our success and there
isnothing more important than the safety,
health and wellbeing of our employees.
Supporting our focus on SHE are our values
of Passion, Innovation and Performance. Our
safety performance since FY 2021 has seen
a 77% reduction in our recordable injury
frequency rate (‘RIFR’) to 0.16 in FY 2025
(industry average 1.5 based on US OSHA
average). During the year our Seal Sands
(UK) manufacturing facility achieved
20years without a lost time incident,
asignificant milestone.
We have also made good progress
inQuality, though there is more to do.
Ourimprovements to ‘Right First Time’
manufacturing support efficiency in our
manufacturing processes as well as an
enhanced customer experience.
Embedded in our business model is
Sustainability. VICTREX™ PEEK is lighter
than metal, faster to process and offers
environmental or societal benefits, for example
supporting CO
2
reduction in Transport markets,
energy efficient devices, or supporting better
patient outcomes in Medical. We continue
to show how VICTREX™ PEEK has a lower
climate impact than the industry average
(details shown on pages 38 to 67 and based
on using UK monomers), which supports
our customers’ sustainability journeys.
PEOPLE & CAPABILITY
Victrex is unique in having over
1,100employees waking up every day
focused solely on growing the opportunities
for VICTREX™ PEEK. Our culture of
innovation and of Diversity, Equity &
Inclusion remains strong, illustrated by
Victrex being listed in The Sunday Times
Best Places to Work 2025. We also secured
the Chemical Industries Association
‘Company of the Year’ award2025.
To drive a high performance culture and
improve delivery means ensuring we have
the right behaviours. Across our global
team, our employees remain highly engaged
and eager to improve our performance,
witha strong talent agenda including
apprenticeships and early careers programmes.
Many of our employees have progressed
tomuch larger roles.
SUMMARY: REALISING AND
UNLOCKING OUR POTENTIAL
As I retire as CEO, I leave the business with
stronger foundations, an innovative culture
and a talented group of global employees
with Passion, Innovation and Performance at
the heart of everything we do.
Taking more extensive improvement actions
now to fully address short-term challenges and
respond to a more competitive environment
will be key. The opportunity to improve
financial performance and unlock our
significant potential over the years ahead
remains significant.
This is and will remain a fantastic company.
Ilook forward to seeing James Routh,
asournew CEO, building on these
strongfoundations.
Jakob Sigurdsson
CEO
2 December 2025
STRATEGIC PROGRESS
Q1: MEDICAL
US FDA approval for first 3D
printed Porous PEEK spinal cage
based on PEEK-OPTIMA™
Read more on pages 20–27
Q2: SAFETY
20 years without a Lost Time
Accident (‘LTA’) at our Seal
Sands UK manufacturing facility
Read more on page 63
Q3: MEGA‑PROGRAMMES
Petrobras awards technological
order contract to TechnipFMC
for Hybrid Flexible Pipe (Magma)
based on VICTREX™ PEEK
Read more on pages 20–27
Q4: CHINA
Commercial sales from our new
manufacturing facility in China,
with initial production of Victrex
‘Elementary’ PEEK
Read more on pages 20–27
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
13Annual Report 2025 – Victrex plc
How we performed inFY2025
•
Sales volumes up 12%
•
Revenue up 1%, offset by Medical
Spine weakness
•
Underlying operating cash conversion
of 121%
•
China facility operational and
50tonnes of product manufactured
Focus for FY 2026
•
Guidance for solid progress vs
FY2025, to reflect ongoing headwinds,
e.g.Medical Spine and currency
•
Profit Improvement Plan to reduce
cost to serve (implementation in
FY2026, full year benefits in FY 2027)
•
Increasing sales excellence &
leveraging digital solutions including
ERP system
Link to risks
3, 7, 8
REVENUE
CHANGE %
F
+1%
UNDERLYING OPERATING
CASHCONVERSION %
F
B
121%
Definition
The year on year percentage change
intotal revenue 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.
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.
DRIVE CORE BUSINESS
21 22
15
11
(10)
(5)
23 24 25
100
49
114
21 22 23 24 25
18
1
121
KEY PERFORMANCE INDICATORS
How we performed inFY2025
•
Innovation leadership: R&D
investment at 6% of revenue
•
Mega-programme revenue lower
at£9.1m (FY 2024: £10.2m)
•
Clinical trial commenced for PEEK
Knee (US), building on India
regulatory submission
•
Increased ‘Magma’ revenue following
technological order for TechnipFMC
(by Petrobras)
Focus for FY 2026
•
Improve mega-programme
commercialisation & revenue
•
Progress US clinical trial for PEEK Knee
•
Continue support for TechnipFMC
and prepare for Magma scale-up
(Hybrid Flexible Pipe), driving
revenuegrowth
Link to risks
6, 7
R&D
SPEND £M
F
£18.8m
6% of Group revenue
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
F
B
£9.1m
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.
DIFFERENTIATE THROUGH INNOVATION
15.5
15.7
18.6
17.5
21 22 23 24 25
11.1
10.2
23 24 25
Principal risks
Pages28to34
18.8
9.1
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
14 Victrex plc – Annual Report 2025
How we performed inFY2025
•
Lower return on invested capital
reflecting first full year of
Chinamanufacturing
•
Business wins in Advanced Air
Mobility (‘AAM’), supporting increased
use of VICTREX™ PEEK based
composite materials
•
Earnings per share (basic) up62%
Focus for FY 2026
•
Support Magma scale-up and
increased revenues
•
Drive further milestones in PEEKKnee
•
Grow earnings per share
Link to risks
7, 8
How we performed inFY2025
•
Improved recordable injury frequency
at0.16 (lower than OSHA industry
average of 1.5 and FY 2024 0.18)
•
Achieved climate assessment for
80%of products by volume (Lifecycle
Analysis) with favourable impact vs
industry standard
•
Achieved 40% Females in Leadership
(based on FTSE Women Leaders)
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
Link to risks
1, 2, 4, 5, 6
OSHA RECORDABLE
INJURYRATE
N
B
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.
RETURN ON
INVESTED CAPITAL %
F
L
9%
BASIC EARNINGS PERSHARE P
F
L
32.0p
HOURS WORKED IN
THECOMMUNITY
N
2,216
Definition
Return on invested capital (‘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
ROIC measures the return generated on
capital invested by the Group and provides a
metric for long-term value creation.
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.
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).
CREATE & DELIVER FUTURE VALUE
UNDERPIN THROUGH SAFETY, SUSTAINABILITY AND CAPABILITY
21
18
22
20
14
10
23 24 25
84.3
87.6
70.9
19.8
21 22 23 24 25
4,784
3,559
3,895
4,423
21 22 23 24 25
0.7
0.2
0.2
0.18
21 22 23 24 25
Key to KPIs
F
Financial KPI
N
Non-financial KPI
B
Linked to bonus objectives (remuneration)
L
Linked to Long Term Incentive Plan (’LTIP’)
objectives (remuneration)
9
32.0
0.16
2,216
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
15Annual Report 2025 – Victrex plc
Stakeholder Focus areas How the Board engages Engagement outcomes in FY 2025
EMPLOYEES
•
Safety focus
•
Innovative culture
•
Sustainability embedded in our businessmodel
•
Highly motivated and talented employees
•
High retention rate and appropriatereward
•
High level of share ownership
•
Equal Opportunities, Diversity, Equity &
Inclusion (‘DE&I’) agenda
•
Company performance
•
The Board receives reports on our safety programme including the ‘Safer, Better,
Together’ campaign and monitors employee training
•
The Executive Directors attend Global staff briefings (quarterly), CEO Awards,
employee forums and join employee resource groups as appropriate
•
The CEO takes ownership of ‘Ask the CEO’ and other intranet forums and
provides feedback at Board meetings
•
Culture, talent development and succession planning are discussed at Board meetings
•
The Remuneration Committee reviews workforce policies and practices
regarding reward structures and makes recommendations to the Board
•
The Board considers the Employee ‘voice’ through the Workforce Engagement
Director and Employee Engagement Surveys, and reviews steps taken to
addressfeedback
•
The Board regularly attends Victrex’s HQ and other global sites
•
Strong safety performance since FY 2021; 77% lower RIFR rate
•
31 Professional Development Awards & 46 CEO Awards;
48employees on Victrex apprenticeships
•
Diverse and inclusive workplace, with several employee resource
groups including for Race, Ethnicity and Cultural Heritage (‘REACH’)
•
Organisational Capability Review (‘OCR’) to drive succession planning
•
Minimum Wage and National LivingWage, and employee
bonusscheme
•
Employee Engagement Survey; strong engagement score at 76% (UK)
•
Recognition of external and macro-economic factors impacting
Victrex, including below market wage growth for FY 2026
CUSTOMERS
•
Solutions-driven culture
•
Enhanced Go to Market approach (Project Vista)
•
Sustainable products supporting CO
2
reduction
&clinical benefit
•
Quality and regulatory support
•
Technical service offering
•
Collaboration across the supply chain
•
China manufacturing to support customers
•
The Board reviews and supports the business model and the strategic alignment
with ‘Must Win’ priorities
•
The Board receives reports on and monitors the Go to Market structure,
including increased regional focus and integration of digital solutions
•
The Board receives reports from the Quality and Regulatory teams which
support ourcustomers
•
The Board approves key supply and development contracts
•
The Board receives reports and presentations from the Sales teams and VMT
asappropriate
•
Key milestones for commercial delivery across our ‘Must Win’ priorities
•
Improved volume growth of 12%
•
Record annual pipeline growth of 18%/£62m (based on Mature
Annualised Revenues)
•
New digital solutions and ‘Highspot’ customer portal to showcase
Victrex’s proposition with customers
•
Performance-based pricing of our products
•
Board level engagement on key strategic programmes with
customers, e.g. ‘Magma’ and TechnipFMC
INVESTORS
•
Delivery of strategy
•
Alignment with shareholder interests
•
Capital allocation policy and understanding
ofdividend/buyback preferences
•
Improvement in earnings and returns
•
ESG agenda and long-termgoals
•
Directors’ remuneration policy
•
The Board receives updates from the Investor Relations function at each
Boardmeeting
•
The Executive Directors participate in global roadshows
•
All Directors attend the AGM, enabling shareholder access
•
The Remuneration Committee Chair consults on the remuneration policy
•
The Chair and the Executive Directors have regular dialogue with investors on
performance, strategy or other matters
•
The Audit Committee recommends and the Board approves the Annual Report and
financial statements, the half year results and the interim management statements
•
Strong investor relations programme including 190 meetings hosted
(virtualand faceto face via IR activity, roadshows or conferences)
•
Delivery of new investors in the UK, the US, Canada and Europe
•
Engagement through major investor conferences or site visits
•
Broad investor base: North American shareholding ~20%
•
Above average shareholding in ethical investment funds (ESG)
•
Improved understanding of strategy and delivery focus
SUPPLIERS
•
Security of supply
•
ESG and Scope 3 emissions
•
Global supply chain
•
Shorter lead times
•
Compliance and quality
•
Reliability and flexibility
•
Commercial performance and supplier relationships are discussed at Board meetings
•
The Board receives reports on supply chain risk management and
engagementprogrammes
•
The Board reviews and endorses the Supplier Code of Conduct
•
Business continuity planning is reviewed by the Audit Committee and reported
on to the Board
•
The CFO endorses the Company’s status as a Prompt Payment Code signatory
and reviews compliance with its principles
•
The Corporate Responsibility Committee provides oversight of modern slavery,
human trafficking and human rights in the supply chain and recommends the
Modern slavery statement to the Board
•
Further progress on dual sourcing
•
Improved performance of third-party manufacturers
•
Long-term agreements on raw materials
•
Supplier management framework
•
Robust risk management of critical suppliers
•
Engagement on decarbonisation opportunities (supporting
ourScope 3 emission goals)
COMMUNITIES
ANDENVIRONMENT
•
Sustainability programme
•
People: social responsibility
•
Planet: resource efficiency
•
Products: sustainable solutions
•
The Corporate Responsibility (‘CR’) Committee oversees strategic efforts
toaddress sustainability in the supply chain
•
The CR Committee receives reports on engagement with ESG rating agencies
•
The CR Committee reviews progress on Lifecycle Analysis and engagement with
customers and endorses Biodiversity partnerships
•
The CR Committee receives reports on STEM Ambassadors and outreach
toschools and colleges
•
The CR Committee monitors activities related to supporting our talent agenda
through local employment events and Business in the Community
•
Maintained 100% electricity from renewable sources (including
new Victrex solar generation in the UK) across all global sites
•
Positive accreditations across ESG benchmarks, e.g. MSCI
‘A’rating, FTSERussell Green Revenues Index, Apple Clean
EnergySupplierprogramme and Chemical Industries Association
‘Company of the Year’
•
Optionality for SBTi decarbonisation roadmap
•
Global volunteering including 2,216 employee hourscommitted
REGULATORS AND
GOVERNMENT
•
Safety culture
•
Employee welfare & wellbeing
•
Product quality
•
Innovation
•
Sustainability programme
•
The CR Committee and Board receive reports on engagement with industry
regulators, e.g. HSE, Environment Agency, certified bodies and trade
organisations, cross-industry collaborations, and NGOs and industry bodies
•
Further improved strong SHE performance including OSHA
recordable injuryrate at 0.16 (industry average 1.5)
•
Collaboration withacademia including for sustainable chemistry
opportunities (process of manufacturing PEEK)
•
3D printing collaborations
•
50% increase in governmental engagement in FY 2025,
particularly onenergy costs and decarbonisation agenda
STAKEHOLDER ENGAGEMENT
WHY WE ENGAGE
We place and consider the needs of all
ourstakeholders – internal and external –
high on our daily agenda, listening to and
understanding the interests and concerns
ofall our global stakeholder groups.
For example, we enable environmental
&societal benefits through our products,
helping to address performance challenges
faced by our customers. This includes
through the technical or performance
benefits of our polymers and minimising
theuse of resources in our own operations.
Stakeholder engagement is assessed every
year by the Board. This covers employees,
customers, investors, suppliers, regulators
and government, and our communities.
Forinvestors, we have a proactive annual
plan of engagement, through our financial
calendar activity, investor roadshows, Annual
General Meeting, site visits or investor
conferences. Reflecting our increasingly
diverse shareholder base (with around 20%
ofour shareholding in North America),
weactively engage with investors in
theUK,Europe, theUS and Canada.
Wecontinue to be collaborative with
allstakeholder groups, listening to
feedbackand being open tochange.
Key to strategy
Drive core business
Differentiate through innovation
Create and deliver futurevalue
Underpin through safety,
sustainabilityandcapability
Strategy and KPIs
Pages12 to 15
OUR STAKEHOLDER
LANDSCAPE
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
16 Victrex plc – Annual Report 2025
Stakeholder Focus areas How the Board engages Engagement outcomes in FY 2025
EMPLOYEES
•
Safety focus
•
Innovative culture
•
Sustainability embedded in our businessmodel
•
Highly motivated and talented employees
•
High retention rate and appropriatereward
•
High level of share ownership
•
Equal Opportunities, Diversity, Equity &
Inclusion (‘DE&I’) agenda
•
Company performance
•
The Board receives reports on our safety programme including the ‘Safer, Better,
Together’ campaign and monitors employee training
•
The Executive Directors attend Global staff briefings (quarterly), CEO Awards,
employee forums and join employee resource groups as appropriate
•
The CEO takes ownership of ‘Ask the CEO’ and other intranet forums and
provides feedback at Board meetings
•
Culture, talent development and succession planning are discussed at Board meetings
•
The Remuneration Committee reviews workforce policies and practices
regarding reward structures and makes recommendations to the Board
•
The Board considers the Employee ‘voice’ through the Workforce Engagement
Director and Employee Engagement Surveys, and reviews steps taken to
addressfeedback
•
The Board regularly attends Victrex’s HQ and other global sites
•
Strong safety performance since FY 2021; 77% lower RIFR rate
•
31 Professional Development Awards & 46 CEO Awards;
48employees on Victrex apprenticeships
•
Diverse and inclusive workplace, with several employee resource
groups including for Race, Ethnicity and Cultural Heritage (‘REACH’)
•
Organisational Capability Review (‘OCR’) to drive succession planning
•
Minimum Wage and National LivingWage, and employee
bonusscheme
•
Employee Engagement Survey; strong engagement score at 76% (UK)
•
Recognition of external and macro-economic factors impacting
Victrex, including below market wage growth for FY 2026
CUSTOMERS
•
Solutions-driven culture
•
Enhanced Go to Market approach (Project Vista)
•
Sustainable products supporting CO
2
reduction
&clinical benefit
•
Quality and regulatory support
•
Technical service offering
•
Collaboration across the supply chain
•
China manufacturing to support customers
•
The Board reviews and supports the business model and the strategic alignment
with ‘Must Win’ priorities
•
The Board receives reports on and monitors the Go to Market structure,
including increased regional focus and integration of digital solutions
•
The Board receives reports from the Quality and Regulatory teams which
support ourcustomers
•
The Board approves key supply and development contracts
•
The Board receives reports and presentations from the Sales teams and VMT
asappropriate
•
Key milestones for commercial delivery across our ‘Must Win’ priorities
•
Improved volume growth of 12%
•
Record annual pipeline growth of 18%/£62m (based on Mature
Annualised Revenues)
•
New digital solutions and ‘Highspot’ customer portal to showcase
Victrex’s proposition with customers
•
Performance-based pricing of our products
•
Board level engagement on key strategic programmes with
customers, e.g. ‘Magma’ and TechnipFMC
INVESTORS
•
Delivery of strategy
•
Alignment with shareholder interests
•
Capital allocation policy and understanding
ofdividend/buyback preferences
•
Improvement in earnings and returns
•
ESG agenda and long-termgoals
•
Directors’ remuneration policy
•
The Board receives updates from the Investor Relations function at each
Boardmeeting
•
The Executive Directors participate in global roadshows
•
All Directors attend the AGM, enabling shareholder access
•
The Remuneration Committee Chair consults on the remuneration policy
•
The Chair and the Executive Directors have regular dialogue with investors on
performance, strategy or other matters
•
The Audit Committee recommends and the Board approves the Annual Report and
financial statements, the half year results and the interim management statements
•
Strong investor relations programme including 190 meetings hosted
(virtualand faceto face via IR activity, roadshows or conferences)
•
Delivery of new investors in the UK, the US, Canada and Europe
•
Engagement through major investor conferences or site visits
•
Broad investor base: North American shareholding ~20%
•
Above average shareholding in ethical investment funds (ESG)
•
Improved understanding of strategy and delivery focus
SUPPLIERS
•
Security of supply
•
ESG and Scope 3 emissions
•
Global supply chain
•
Shorter lead times
•
Compliance and quality
•
Reliability and flexibility
•
Commercial performance and supplier relationships are discussed at Board meetings
•
The Board receives reports on supply chain risk management and
engagementprogrammes
•
The Board reviews and endorses the Supplier Code of Conduct
•
Business continuity planning is reviewed by the Audit Committee and reported
on to the Board
•
The CFO endorses the Company’s status as a Prompt Payment Code signatory
and reviews compliance with its principles
•
The Corporate Responsibility Committee provides oversight of modern slavery,
human trafficking and human rights in the supply chain and recommends the
Modern slavery statement to the Board
•
Further progress on dual sourcing
•
Improved performance of third-party manufacturers
•
Long-term agreements on raw materials
•
Supplier management framework
•
Robust risk management of critical suppliers
•
Engagement on decarbonisation opportunities (supporting
ourScope 3 emission goals)
COMMUNITIES
ANDENVIRONMENT
•
Sustainability programme
•
People: social responsibility
•
Planet: resource efficiency
•
Products: sustainable solutions
•
The Corporate Responsibility (‘CR’) Committee oversees strategic efforts
toaddress sustainability in the supply chain
•
The CR Committee receives reports on engagement with ESG rating agencies
•
The CR Committee reviews progress on Lifecycle Analysis and engagement with
customers and endorses Biodiversity partnerships
•
The CR Committee receives reports on STEM Ambassadors and outreach
toschools and colleges
•
The CR Committee monitors activities related to supporting our talent agenda
through local employment events and Business in the Community
•
Maintained 100% electricity from renewable sources (including
new Victrex solar generation in the UK) across all global sites
•
Positive accreditations across ESG benchmarks, e.g. MSCI
‘A’rating, FTSERussell Green Revenues Index, Apple Clean
EnergySupplierprogramme and Chemical Industries Association
‘Company of the Year’
•
Optionality for SBTi decarbonisation roadmap
•
Global volunteering including 2,216 employee hourscommitted
REGULATORS AND
GOVERNMENT
•
Safety culture
•
Employee welfare & wellbeing
•
Product quality
•
Innovation
•
Sustainability programme
•
The CR Committee and Board receive reports on engagement with industry
regulators, e.g. HSE, Environment Agency, certified bodies and trade
organisations, cross-industry collaborations, and NGOs and industry bodies
•
Further improved strong SHE performance including OSHA
recordable injuryrate at 0.16 (industry average 1.5)
•
Collaboration withacademia including for sustainable chemistry
opportunities (process of manufacturing PEEK)
•
3D printing collaborations
•
50% increase in governmental engagement in FY 2025,
particularly onenergy costs and decarbonisation agenda
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
17Annual Report 2025 – Victrex plc
STAKEHOLDER ENGAGEMENT CONTINUED
During the year ended 30 September 2025, the Board of Victrex plc believes, as individuals and collectively, it has considered stakeholder
interests in its decision making, while ensuring the long-term success of the Company is promoted in pursuit of our strategic aims.
Our section 172 statement is set out on the following pages, and should be read in conjunction with our stakeholder engagement
statement on pages 16 and 17. It describes how the Directors have had regard to stakeholders’ interests when discharging their duties
under section 172 and includes examples of key decisions taken during the year. Where appropriate, Board papers include a stakeholder
assessment to support the Board in its duties. The Victrex governance framework from page 75 describes the Board level governance
andhow the Board delegates its authority. A summary of stakeholder groups considered as part of the Board’s activities is provided on
pages78and 79 of the Corporate governance report.
Alongside the key decisions summarised in this statement, the below table outlines other areas of this report which detail how the Directors
have had regard to the section 172 factors. Engagement with investors is described on pages 16, 17 and 98.
A
The likely consequences of any decision in the long term
The Board has an established programme of business and
setsstrategy with a view to long-term success and to deliver
our purpose.
•
Our purpose, page 3
•
Our business model, pages 8 and 9
•
Our strategy and strategic progress, pages 1–67
•
Board outcomes, pages 16–19
B
The interests of the company’s employees
Our people are essential to delivering performance and growth.
We invest time and resources in employee engagement,
training and development. Our Workforce Engagement NED
gathers the views of the workforce on behalf of the Board.
When making key decisions, the Board considers employee
views gathered through engagement mechanisms.
•
Business model, pages 8 and 9
•
Stakeholder engagement, pages 16 and 17
•
People and culture, pages 52–54 and 77
•
Health and safety, page 63
•
Employee engagement, pages 16 and 17 and 52–54
•
Workforce NED report, page 81
•
Directors’ remuneration report, pages 95–116
•
Whistleblowing, page 65
C
The need to foster the company’s business relationships
with suppliers, customers and others
Our relationships with customers, suppliers, governments,
regulators and partners are core to our strategy and business
model and building a sustainable business. The Board receives
updates on engagement across the Group at meetings,
including customer ‘on time in full’ metrics and the fair
treatment and payment of suppliers and reviews the Modern
slavery and human trafficking statement annually.
•
Markets, pages 26 and 27
•
Business model, pages 8 and 9
•
Stakeholder engagement, pages 16 and 17
•
Strategic progress, pages 1–67
•
Modern slavery, page 65
•
Payment practices reporting, page 118
D
The impact of the company’s operations on the
community and the environment
Our sites are positive contributors to their local communities
as employers and also through apprenticeships, STEM
activities in schools and colleges, and community activities.
•
Business model, pages 8 and 9
•
Stakeholder engagement, pages 16 and 17
•
Strategic progress, pages 1–67
•
Sustainability report, pages 38–67
•
TCFD, pages 42–49
E
The desirability of the company maintaining
areputation for high standards of business
Our sustainability initiatives are consistent with building our
standing as a good corporate citizen. The Board demands high
standards of conduct and expects management to be mindful
of how and with whom business is conducted. The Group will
decline to do business with third parties that display poor
business conduct or do not pass applicable onboarding checks.
•
Business model, pages 8 and 9
•
Health and safety, page 63
•
TCFD, pages 42–49
•
Non-financial and sustainability information statement,
pages 66 and 67
•
Risk management, pages 28–34
•
Audit Committee report, pages 86–92
•
Whistleblowing, page 65
•
Modern slavery, pages 65
F
The need to act fairly between members of
thecompany
It’s not always possible to provide positive outcomes for all
stakeholders and the Board sometimes has to make decisions
based on balancing the competing priorities of stakeholders.
•
Business model, pages 8 and 9
•
Stakeholder engagement, pages 16 and 17
•
Strategic progress, pages 1–67
•
Board outcomes, pages 16–19
•
Directors’ remuneration report, pages 95–116
HOW WE ENGAGE
WITHOUR STAKEHOLDERS
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
18 Victrex plc – Annual Report 2025
DELIVERING FOR OUR STAKEHOLDERS
CEO SUCCESSION – FOCUS ON
STRATEGYEXECUTION
With the retirement of Jakob Sigurdsson as CEO after eight
years in the role, the Board considered all of our stakeholders,
particularly during the planning and transition phase.
A defining point for the recruitment of a new CEO was how
Victrex can focus harder on strategy execution and delivery,
whether it be addressing increased competition, how we
serveour customers or how we can further differentiate
byprogressing our mega-programmes or ensuring that we
improve our operational effectiveness and reduce our cost
toserve customers.
As a consequence, delivery and execution of strategy were
keyrequirements, as well as balancing the consideration of
experience as a listed company CEO, a track record of delivery
for a global customer base, and being able to drive an
innovative culture for employees.
Board consideration for stakeholders aligned to section 172 included:
Stakeholder Section 172 factor considerations
Customers The Board’s focus on a CEO with experience
in our end markets and the ability to enhance
our Go to Market approach and customer
experience to ensure weretain our position
as a global leader.
Investors Experience in delivering an improved
financial performance for investors on a
global basis, supporting how we can break out
of what has been and remains a challenging
period for global chemicalcompanies.
Employees Driving a high performance culture as well
as reducing our cost to serve and ensuring our
cost base is appropriate in an increasingly
competitive environment.
The outcome and impact on the long-term sustainable
success of Victrex: James joins Victrex with effect from
1January2026. This appointment reflects the Board’s
commitment toaligning leadership capability with stakeholder
priorities andensuring Victrex is well positioned to enhance
strategy execution, deliver sustainable growth and improve
operational excellence in an increasingly competitive landscape.
Link to section 172
A
B
C
F
NEW CHINA FACILITY – IMPROVING
OPERATIONALPERFORMANCE
With the start-up of our new manufacturing facility in Panjin,
(China) in the second half of 2024, we were able to further
differentiate our business. Our Victrex Panjin facility will
further support regional growth opportunities in China
(‘Chinafor China’) with a type 2 manufacturing process
forVictrex ‘Elementary’ PEEK.
This is a strategic asset for Victrex in enabling further growth
opportunities in the region, whilst addressing competitive
challenges there. Initial operational issues during start-up
meant engagement with stakeholders has been required to
improve operational performance and commercial delivery.
This was largely achieved by the end of FY 2025, with steady
ramp-up anticipated in FY 2026.
The Board visited China in October 2024. The Board consideration
for stakeholders aligned to section 172 included:
Stakeholder Section 172 factor considerations
Employees How we could utilise our China and UK-based
engineering teams to resolve initial
operational challenges, with good progress
being made by the financial year end. Safety
performance in a new geography and a new
asset also remains our highest priority.
Customers The clear need to deliver for our customers
based on initial orders during FY 2025 and
ensure a smooth customer experience. Several
Western-based customers established facilities
in China to drive growth underpinned by
Victrex materials, with customer deliveries
being fulfilled through the financial year.
Suppliers Initial operational issues meant the
requirement to keep our suppliers informed
during start-up and operational ramp-up.
Thishelped support a smooth transition
inthefirst full year of operation.
The outcome and impact on the long-term sustainable
success of Victrex: the collaborative efforts of the UK and
China-based teams led to improved performance by the year
end, ensuring we can supply customers in full. This supports
customer trust and satisfaction as we further build out our
China growth opportunities.
Link to section 172
A
B
C
D
E
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
19Annual Report 2025 – Victrex plc
FINANCIAL REVIEW
STRONG VOLUMES,
WEAKER PBT
OPERATING REVIEW
STRONG VOLUMES, DRIVEN BY
SUSTAINABLE SOLUTIONS
Group sales volume of 4,164 tonnes was up
12% on the prior year (FY 2024: 3,731 tonnes),
driven by Sustainable Solutions and in
particular the end markets of Value Added
Resellers (‘VARs’) and Energy & Industrial.
REVENUE UP 1%, REFLECTING
SALES MIX, WEAKER MEDICAL
SPINE AND CURRENCY
FY 2025 Group revenue was up 1% at
£292.7m (FY 2024: £291.0m) and up 3%
inconstant currency. Performance reflects
that whilst sales volume was strong, revenue
growth lagged volume growth due to
improved performance being concentrated
in VARs and Energy & Industrial end markets,
as well as revenues being much softer in
Medical Spine.
SOLID Q4 PERFORMANCE
MOMENTUM
Sales volume momentum continued in Q4,
with sales volume up 7% (Q4 volumes of
1,089 tonnes vs Q4 2024: 1,015 tonnes),
and Group revenue slightly down at £75.5m
(Q4 2024: £77.7m), reflecting a continuation
of sales mix and Medical Spine weakness.
ASP OF £70/KG, DRIVEN BY SALES
MIX AND CURRENCY; ROBUST
LFLPRICING
Our average selling price (‘ASP’) of £70.3/kg
was in line with our most recent guidance
and down 10% on the prior year (down 7%
in constant currency) primarily due to the
impact of sales mix, weaker Medical Spine
and currency moving adversely during the
year. Approximately 80% of the year on
year movement was due to sales mix and
currency. Like for like (‘LFL’) pricing was
robust across key end markets outside of
VARs and Energy & Industrial, with more
competitive pressure in VARs.
In cases where price has reduced, this has
reflected the opportunity to regain business
(for example in Energy & Industrial) or has
been in response to competitive activity,
including from less established Asian
manufacturers. The advantages and
differentiation of using Victrex products
alongside our technical service and
application development capabilities
(‘delivering solutions, not just products’)
remain strong.
FY 2025 WAS A
CHALLENGING YEAR
FORVICTREX.
WHILST WE DELIVERED
STRONG SALES VOLUMES,
STRONG CASH CONVERSION
AND RESULTS WERE IN‑LINE
WITH OUR MOST RECENT
GUIDANCE, SALES MIX,
CURRENCY AND CHINA
START‑UP COSTS LED TO
AWEAKER PROFIT BEFORE
TAX (PBT) PERFORMANCE.
Ian Melling
CFO
Volume (t) Revenue (£m)
FY 2025 FY 2024 Growth FY 2025 FY 2024 Growth
Transport (Aero & Auto) 1,012 1,022 -1%
Electronics 464 454 +2%
Energy & Industrial 705 604 +17%
VARs 1,797 1,488 +21%
Sustainable Solutions 3,978 3,568 +11% 233.9 229.1 +2%
Medical 186 163 +14% 58.8 61.9 -5%
Total Group 4,164 3,731 +12% 292.7 291.0 +1%
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
20 Victrex plc – Annual Report 2025
SELF‑HELP: GO TO MARKET
ANDINITIAL BENEFITS FROM
PROJECT VISTA
FY 2025 saw some initial benefits of our
‘self-help’ and improvement actions under
Project Vista. These included how we Go to
Market and serve our customers, and through
digital tools. This supported volume growth
and a record sales pipeline build in FY 2025
of £62m, or an 18% increase, with Mature
Annualised Revenues (‘MAR’) at £414m
(FY2024: £352m). Mature Annualised
Revenues rely on all sales targets being
converted, with typical conversion rates
being lower than the full value of the sales
pipeline. We also benefited from £2m
ofannualised procurement savings.
SUSTAINABLE PRODUCT REVENUES
Victrex has strong alignment to megatrends
like CO
2
reduction, energy efficiency
andclinical innovation, supporting the
commercial use of VICTREX™ PEEK and
enabling environmental and societal benefit
for our customers. End market alignment
tothese megatrends includes Aerospace,
Automotive and Medical, with some
applications in Electronics and Energy
&Industrial included in our measure of
sustainable product revenues
2
. In FY 2025,
53% of our revenues were based on
sustainable products (FY 2024 (restated): 56%),
with weaker Medical and stronger VARs
offsetting the year on year comparative.
‘MAGMA’ KEY MILESTONE
SUPPORTS COMMERCIAL
ROADMAP
In our ‘Magma’ programme, which supports
a composite pipe solution for existing and
future oil and gas fields based on VICTREX
TM
PEEK, the technological contract order –
from Petrobras to TechnipFMC – was
announced in May 2025. The final elements
of qualification work are being completed
during FY 2026, providing improved visibility
on the ramp-up requirements from our
customer, TechnipFMC, and likely timing
forrevenues to step-up.
MEGA‑PROGRAMME REVENUES
IMPACTED BY E‑MOBILITY AND
TRAUMA ADOPTION
Despite a key milestone and increased
revenue for our Magma programme, and
technical milestones in Aerospace Composites
and Knee, FY 2025 mega-programme
revenues totalled £9.1m, lower than the prior
year (FY 2024: £10.2m). Lower revenues in
E-mobility for 800-volt platforms and a slower
ramp-up in Trauma, due to regulatory timing,
impacted progress.
As part of our Profit Improvement Plan,
weare assessing the shape of our product
portfolio, which may consider prioritising
where we invest in our mega-programmes
(mega-programmes are defined as offering
peak year revenues above £50m).
FY 2025 key milestones in our
mega-programme portfolio included:
•
Aerospace Composites:
•
Business wins in Advanced Air
Mobility (‘AAM’) to support short
tomedium-term growth, as AAM
applications focus on lightweight
anddurable materials.
•
E-mobility:
•
Lower revenues but additional
platforms to support 800 volt electric
vehicles (‘EVs’).
•
Magma:
•
Anticipated volumes starting to scale
up from FY 2026 onwards, subject to
the final commercial roadmap
between TechnipFMC and Petrobras.
•
Trauma Plates:
•
Regulatory submission for six new
plates in China, launching in FY 2026.
•
PEEK Knee:
•
First patient implants in US clinical trial,
with 85 patients implanted globally,
including 20 in the US.
•
Regulatory process ongoing in India,
with regulatory submission pathways
being prepared for other geographies.
PEEK‑BASED
‘MAGMA’ M‑PIPE
®
Hybrid Flexible Pipe (‘HFP’) is a
Thermoplastic Composite Pipe based
on VICTREX™ PEEK
In May 2025, TechnipFMC announced
thatithad secured a technological order
contract from Petrobras SA (Brazil). This order
supports the pathway towards qualification
and a potentially significant multi-year
opportunity for Victrex’s ‘Magma’ mega-
programme, which is based on VICTREX
TM
PEEK polymer, Victrex composite tape and
Victrex pipe extrusion know-how. The
Hybrid Flexible Pipe offers a sustainable
and durable alternative for the industry.
Approximately 50% lighter than steel in
water, HFP seeks to address the stress
corrosion cracking issues of metal based
pipes in deepwater fields within Brazil.
50%
lighter than steel in water
Visit victrex.com/en/
magma-m-pipe
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
21Annual Report 2025 – Victrex plc
OUR UPDATED CAPITAL ALLOCATION POLICY:
MAINTAIN BALANCE SHEET STRENGTH
FINANCIAL REVIEW CONTINUED
OPERATING REVIEW
CONTINUED
INNOVATION INVESTMENT
Research & Development investment totalled
6% of revenues this year, at £18.8m (FY 2024:
6% or £17.5m). The focus of incremental
growth and innovation investment in
thenear term remains in our Medical
Acceleration programme. We also saw
increasing use of digital tools and digital
modelling to support customers this year,
including R&D.
GOING FURTHER IN FY 2026:
PROFIT IMPROVEMENT PLAN
Our Profit Improvement Plan will lead to
amore agile and delivery focused growth
business. Full year benefits will be realised
inFY 2027, with initial benefits in H2 2026.
Weare targeting annualised cost savings
ofat least £10m, with a cost to deliver
(exceptional items) of approximately £10m
incurred in FY2026. Our initial focus will be
on cost ofmanufacture and cost efficiency
actions, as well as simplifying our portfolio.
We will implement these actions during FY
2026, led by our incoming Chief Executive,
JamesRouth.
DIVISIONAL PERFORMANCE
Full year revenue in Sustainable Solutions
was up 2% at £233.9m (FY 2024 (restated in
note 2): £229.1m), driven by VARs (volumes
up 21%) and Energy & Industrial (volumes
up 17%), resulting in a softer sales mix.
Revenue in constant currency was up5%.
The initial benefits of Project Vista and
ourGo to Market approach supported
performance in FY 2025, including regaining
business and using digital solutions to
support customers and increase our key
account management capabilities.
The impact of increased price competition
was felt primarily within VARs and Energy
&Industrial, despite strong volumes.
Gross margin was slightly higher at 37.8%
(FY 2024 (restated): 37.1%) with the benefit
of improved volumes through our UK plants
and lower raw material costs partially offset
by annualised costs for our new China
facility, sales mix and currency.
Geographically, North America showed
volume growth vs the prior year, driven by
abetter performance in Energy & Industrial
and VARs. Europe also saw improvement
through VARs, with Asia-Pacific also ahead,
supported by Electronics. Asia-Pacific, and
China specifically, remains our fastest growing
region over recent years. North America was
up 26% at 769 tonnes (FY 2024: 612 tonnes);
Europe was up 8% at 2,224 tonnes (FY 2024:
2,062 tonnes) and Asia-Pacific was up 11%
at 1,171 tonnes (FY 2024: 1,057 tonnes).
In Medical, we saw a mixed picture, with
Non-Spine revenues up 7% and Spine
revenues down 28%. Within Non-Spine,
Non Implantable revenues (which comprise
less than one-third of Non-Spine, or less
than 20% of total Medical revenues) were
up 12%. Overall Medical revenue was down
5% at £58.8m (FY 2024 (restated): £61.9m).
Our Non-Spine business grew strongly
across a range of applications with particular
highlights in cranio-maxillofacial (‘CMF’)
surgery, cardio devices and other medical
applications in a broad range of geographies.
Destocking appears to be over in
thesesegments.
In Spine we continued to be impacted
bythe trends away from PEEK towards
expandable and porous titanium cages,
primarily in the US market. In China there
was an impact from volume-based pricing
(‘VBP’) which caused price reductions and
market share shifts amongst medical device
companies, including the withdrawal of
some of our Western customers from that
market. These impacts will not necessarily
recur annually, although these share shifts
have resulted in a lower price point going
forward.
We continue to see a healthy growth rate
inclinical procedures, which underpins our
mid-term opportunities. Medical is now a
much more diverse business than historically,
with increasing penetration in Cardio,
Orthopaedics and Drug Delivery. Revenues
inMedical were 26% Spine and 74%
Non-Spine (FY 2024 (restated): 34% Spine
and 66% Non-Spine).
Average selling price in Medical reflects a wide
divergence of applications, from Non-Spine
(which also includes Non-Implantable, at the
lower end of the pricing spectrum) and Spine.
Spine and various Non-Spine applications,
including Cardio applications, are significantly
higher than divisional ASP.
Gross profit was £44.1m (FY 2024 (restated):
£49.4m) and gross margin was lower at 75.0%
(FY 2024 (restated): 79.8%), which reflects
the impact of sales mix (more Non-Spine vs
Spine) and currency. Geographically, revenues
in the US and Europe were 8% and 6%
lower respectively, with Asia revenues
up1%.
Capex
• Capex at low end of
c.8–10% of sales
• No capacity spend in
current 5 year plan
TARGET TO MAINTAIN NET DEBT/EBITDA IN 0.5x - 1.0x RANGE
•
EXCESS CASH RETURNS CONSIDERED (VIA SHARE BUYBACKS OR
SPECIAL DIVIDENDS) WHEN NET DEBT/EBITDA MOVES
SUSTAINABLY <0.5x
Investment
• Growth investment
orcapability: e.g.
MedicalAcceleration
Regular dividends
• Dividends maintained at
current levels provided
net debt/EBITDA
doesnot exceed the
0.5x-1.0x range
Share buybacks
• Incremental returns if no
investment requirements
• Optionality for modest
buybacks when ND/
EBITDA moves <0.5x
Special dividends
• Incremental returns if no
investment requirements
EXCESS CASH
RETURN OPTIONS
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
22 Victrex plc – Annual Report 2025
FINANCIAL REVIEW
GROSS PROFIT SLIGHTLY LOWER
ON CHINA PLANT START‑UP COSTS
AND CURRENCY HEADWIND
Gross profit was down 1% at £132.6m
(FY2024: £134.3m), driven by currency, the
softer ASP and the annualised costs from
our new China manufacturing facility
(including annualised depreciation costs),
alongside wage inflation. Gross profit was up
5% in constant currency. With production
volumes of PEEK approximately 30% higher
in FY 2025 following a period of destocking
in FY 2024, we saw a positive impact from
higher asset utilisation, alongside the benefit
of lower raw material prices. This represented
a total tailwind in FY 2025 of approximately
£10.7m. In FY 2026, with some further
inventory unwind, production is likely to be
broadly similar to FY 2025. We also have an
opportunity to realise further raw material
savings, building on an improved focus on
procurement, with a £2m saving in this
areaduring FY 2025.
GROSS MARGIN OF 45.3%,
REFLECTING SALES MIX,
CURRENCY AND CHINA
PLANTCOSTS
Full year Group gross margin of 45.3%
wasin line with our most recent guidance,
90 basis points (‘bps’) lower than last year
(FY 2024: 46.2%), driven by a softer ASP
within Sustainable Solutions (more VARs and
Energy & Industrial) and the annualised costs
(£4m adverse year on year impact vs FY 2024
and £8m full year operating loss for FY 2025)
from our China manufacturing facility,
alongside currency. Excluding the impact of
the China plant start-up, gross margin was
47.7% (FY 2024: 47.0%).
For FY 2026, with sales mix expected to
besimilar and production levels relatively
unchanged compared to FY 2025, based
oncurrent assumptions, we anticipate gross
margin will be similar. Any upside will be
driven by Continuous Improvement (‘CI’)
programmes and raw material savings. Whilst
our China facility is expected to see increased
volumes, it will remain loss making and cash
negative in the current year. Improvement
inour China facility during FY 2026 would
support a limited benefit to gross margin
improvement, as the facility continues to
build towards break-even volumes.
Victrex has seen the fastest growth coming
from China over recent years, with the new
Panjin plant helping to further bolster our
existing presence in the region and support
additional medium term growth.
PROGRESS IN NEW CHINA
MANUFACTURING FACILITIES
We were able to deliver in line with
customer demand by the end of the year,
with approximately 50 tonnes being
produced. Our taskforce, involving
manufacturing, engineering and
commercialteams, helped us to deliver
initial improvement in manufacturing,
withactive management of the facility
supporting an expected gradual increase
involumes during FY 2026. This production
facility helps to broaden our portfolio of
PEEK grades, with a new ‘Elementary’
type2 PEEK polymer grade tailored to
thelocal market.
Separately from our new manufacturing
facility, in our existing and long standing
commercial business within China, overall
demand, within our target end markets,
remains positive and it continues to be our
fastest growing region.
GAINS & LOSSES ON FOREIGN
CURRENCY NET HEDGING
Fair value gains and losses on foreign
currency contracts in FY 2025 were a gain
of£3.7m (FY 2024: gain of £5.2m), arising
from contracts where the deal rate obtained
in advance was favourable to the average
exchange rate prevailing at the date of the
related hedged transactions. We continue
tohedge the net currency exposure, which
reflects the diversity of our customer and
cost base across regions.
Our hedging policy is kept under review, for
the duration of hedging, level of cover and
currencies covered. It requires that at least
80% of our US Dollar and Euro forecast cash
flow exposure is hedged for the first six
months, then at least 75% for the second
six months of any rolling twelve-month
period. As at the date of this report,
ourlevel of cover for FY 2026 was
approximately80%.
FURTHER ADVERSE IMPACT FROM
CURRENCY IN FY 2026
Based on spot rates and currency contracts
in place at the date of this report, currency
represents a £2m–£3m headwind to underlying
PBT in FY 2026, which will be weighted to
the first half. This reflects the strengthening
of Sterling, particularly against the US Dollar
and some Asian currencies.
UNDERLYING OPERATING
OVERHEADS
1
SLIGHTLY AHEAD
EXCLUDING WAGE INFLATION &
PARTIAL EMPLOYEE REWARD
Total underlying operating overheads
1
,
which exclude exceptional items of £8.6m,
increased by 14% to £84.2m (FY 2024:
£74.0m). The majority of this increase
related to employee related expenditure,
primarily £3.7m of non-cash share incentives
to support retention. The remainder included
wage inflation, the UK government imposed
employer national insurance (‘NI’) increase,
and partial bonus awards to employees
following three years of low to no payout
under existing employee reward schemes.
Partial bonus payments reflected metrics
achieved on operating cash conversion and
some strategic objectives, with no awards
made under the main profit-based metric
(profit is 60% weighting for the all
employee annual bonus).
The increase in share-based charges reflects
firstly, the absence of charges in the prior
year, due to the reversal of accruals from
prior years for share plans failing to vest (for
all employees, including Executive Directors).
Secondly, the share incentive structure for
employees has changed, as previously
communicated, thereby supporting
retention. Share incentive schemes for
Executive Directors are unchanged.
For Executive Directors and Victrex
Management Team (‘VMT’) members,
theRemuneration Committee used its
discretion to conclude that partial bonuses
for FY 2025should be further reduced,
noting the shareholder experience during
the year.
Underlying operating overheads, when
excluding the effects of wage inflation,
theemployer NI increase, Executive
recruitment fees and partial employee
reward, were up 2%. Tight cost control
prevails, including on recruitment, travel and
reductions in discretionary spend.
Innovation spend was primarily supporting
our Medical Acceleration programme.
In line with our Profit Improvement Plan,
additional actions to improve efficiencies
and reduce our cost base and cost to serve
will be the focus for the year ahead.
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
23Annual Report 2025 – Victrex plc
FINANCIAL REVIEW CONTINUED
FINANCIAL REVIEW
CONTINUED
NET INTEREST EXPENSE
Net interest expense increased to £2.0m
inFY 2025 (FY 2024: net interest expense of
£1.2m) and we expect a similar level through
FY 2026. The increase is driven by the
annualised impact of our China loan used to
fund the investment in manufacturing assets
which started to be expensed (rather than
capitalised) from H2 2024.
UNDERLYING PBT
Underlying PBT of £46.4m was down 21%
(FY 2024: £59.1m). In constant currency,
underlying PBT was down 10%.
Despite strong volumes, a significantly
adverse sales mix (across both divisions) and
some price pressure in VARs resulted in a
weaker drop through to PBT. Whilst the
Group saw improved asset utilisation across
our asset base, costs from our new China
facility recorded an £8m loss. The currency
headwind was £8.0m.
LOWER EXCEPTIONAL ITEMS
FY 2025 saw the final costs of implementing
our ERP system, and associated business
improvements, including the Project Vista
programme. Our ERP system – Microsoft D365
– is helping to drive a stronger customer
facing platform, including digital tools for
sales and our Research & Development
(‘R&D’) teams. We have also recognised a
£4.0m loss from our equity investment in
Surface Generation, which included the
non-cash reduction in the fair value of our
investment to £nil and the write off of
associated receivables.
Taking into account one-off costs associated
with our new Profit Improvement Plan,
weanticipate exceptional items will be
approximately £10m for FY 2026.
REPORTED PBT UP 44%
Reported PBT increased by 44% to £33.8m
(FY 2024: £23.4m) as we saw a much lower
value of exceptional items compared to the
prior year. FY 2025 reflected exceptional
items of £12.6m in total (FY 2024: £35.7m),
mainly comprising ERP system costs, with our
Microsoft D365 system being successfully
implemented, and associated costs from
Project Vista.
EARNINGS PER SHARE UP 62%
Basic earnings per share (‘EPS’) of 32.0p was
up 62% on the prior year (FY 2024: 19.8p),
reflecting the improvement in reported PBT,
including the effect of exceptional items
being lower. Underlying EPS was down 15%
at 43.9p (FY 2024: 51.7p).
TAXATION
In FY 2025 the effective tax rate was 26.3%
(FY 2024: 32.5%) and tax paid was £4.4m
(FY2024: £4.3m). The year on year reduction
was driven by a higher proportion of current
year exceptional items being tax deductible.
The underlying effective rate was 23.9%
(FY2024: 22.2%) with the increase
attributedto the higher losses in China
whereno deferred tax asset is recognised.
Our mid-term guidance for the effective
taxrate is marginally higher than previously
communicated at 15%–19% (previously
14%–18%), due to an increase in the forecast
proportion of profits arising outside the UK,
therefore not benefiting from the UK Patent
Box regime. In FY 2026 the effective rate
islikely to again exceed the top end of the
range, with no asset recognised for carried
forward losses in China and the proportion
ofUK profits available for Patent Box being
the key drivers.
BALANCE SHEET
Retaining a strong balance sheet to support
our global customers – and reflecting the
nature of our long-term programmes – remains
key. Net assets at 30 September 2025
totalled £431.2m (FY 2024: £461.6m).
ROIC
1
Return on invested capital (‘ROIC’) is one
ofour strategic KPIs. Our ROIC in FY 2025
was 9% (FY 2024: 10%). This declined due
to the reduction in underlying profits which
was partially mitigated by a reduction in
average invested capital driven by asset
impairments in both the current and
prioryear.
INVENTORY UNWIND
Following our UK Asset Improvement
programme in FY 2023, we commenced
inventory unwind during FY 2024. In FY2025,
we saw further progress, resulting in closing
inventory reaching £109.7m (FY 2024:
£115.1m). Our goal of approximately £100m
is higher than historical levels, but reflects
the broader business, asset and geographic
portfolio. This includes an increased range
of polymer grades and product forms
tosupport a wider customer base. For
FY2026, we expect to see some additional
progress on inventory unwind, with broadly
similar production levels from UK assets.
LOWER CAPITAL EXPENDITURE
Our asset portfolio is well invested and
underpins our core business and future growth
programmes. Cash capital expenditure reduced
to £21.8m (FY 2024: £32.6m), below the
lower end of our 8–10% of Group revenues
guidance. Our largest investment in the year
was in an essential safety and regulatory project
at our monomer plant in Rotherham, UK.
Mid-term capital expenditure guidance is
unchanged (8–10% of revenues) but is likely
to remain below these levels in the short
term, with production capacity already in
place to support our five-year strategic plan.
Following a review of options to phase
investment in support of decarbonisation,
any major step-up in related capital
expenditure would be phased in FY 2028
and beyond, whilst noting our interim
science-based targets (‘SBTi’) in 2032. This
will only commence subject to available
technology and visibility towards a
decarbonised grid in the UK, as well
asaffordability.
STRONG OPERATING CASH
CONVERSION
1
OF 121%
Cash generated from operations was
down14% at £75.9m (FY 2024: £88.7m)
reflecting the lower operating profit and the
significant benefit of inventory unwind in
the prior year. Underlying operating cash
conversion
1
improved to 121% (FY 2024:
114%) driven by lower capital expenditure.
In June 2025 we paid the 2025 interim
dividend of 13.42p/share at a value of
£11.7m. Net debt at 30 September 2025
was £24.8m (FY 2024: £21.1m), including
cash of £24.2m (FY 2024: £29.3m).
The Group has continued to utilise the UK
revolving credit facility (‘RCF’) to support
payment of the final dividend in FY 2025
and FY 2024 before being fully repaid by
30September in each year. Borrowings,
including lease liabilities, at 30 September 2025
were £49.0m (FY 2024: £50.4m).
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
24 Victrex plc – Annual Report 2025
UPDATED CAPITAL ALLOCATION
POLICY
Alongside our Profit Improvement Plan and
incremental actions to drive performance
improvement, we are maintaining the
strength of our balance sheet, which is a key
consideration for customers and investors.
Reflecting all stakeholder interests, we will
target maintaining net debt/EBITDA
1
in a
range of 0.5x–1.0x.
Dividends will be maintained vs FY 2024,
with the Group securing additional term debt
to reduce reliance on the RCF. The FY 2025
proposed final dividend is 46.14p (FY 2024:
46.14p). We will maintain dividends at these
levels provided the net debt/EBITDA
1
target
range of 0.5x-1.0x is not exceeded. This
ensures that the balance sheet strength, for
which Victrex is well known, is maintained.
Additional returns of cash, via share
buybacks, or special dividends, will be
considered when net debt levels fall
sustainably below the low end of this range.
Ian Melling
CFO
2 December 2025
RECOGNITION IN A CHALLENGING
ENVIRONMENT
In a challenging environment, our culture of
innovation remains strong. With the Chemical
industry seeing continuing challenges during
FY 2025, we were pleased to be recognised
as Company of the Year by the Chemical
Industries Association.
1 Alternative performance measures are defined
in note 26.
2 Sustainable revenues as a % of total revenues
is another internal metric calculated as the %
of revenue earned from sustainable products,
which are defined as those which offer a
quantifiable environmental or societal benefit.
These are primarily in Automotive and
Aerospace (supporting CO
2
reduction) but also
in Energy and Industrial and Electronics (e.g.
wind energy applications, or those which
support energy efficiency) and Medical (both
implantable and non-implantable), supporting
better patient outcomes.
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25Annual Report 2025 – Victrex plc
DIVISIONAL & END MARKET SUMMARY
SUSTAINABLE SOLUTIONS
STRONG VOLUMES, SOFTER SALES MIX
SUSTAINABLE SOLUTIONS
REVENUE
£233.9m
+2% vs FY 2024*
SUSTAINABLE SOLUTIONS
GROSS PROFIT
£88.5m
+4% vs FY 2024*
and supply chain challenges with specific
customers in Aerospace vs strong growth
inFY 2024, alongside new business in
Chinahaving a slower ramp up. We remain
optimistic for Aerospace in FY 2026, with
new business wins and an expected
ramp-up in China, with Victrex having
material specified on platforms where build
rates are increasing, including COMAC’s
C919 aircraft, which forecasts build rates
increasing over the coming years. During
FY2025, we also secured a key business
winin Advanced Air Mobility (‘AAM’),
wherelighter materials and strength are
keyrequirements. In Automotive, industry
forecasts (S&P Global) suggest car production
in 2025 of approximately 1% growth versus
2024, or 89.3 million cars built. We saw
aslightly improved performance in
Automotive duringH2 2025.
VALUE ADDED RESELLERS (‘VARS’)
Our VARs end market sees VICTREX™ PEEK
processed into stock shapes or compounds,
for onward sale into multiple supply chains.
VARs, who are amongst our largest
customers, are integral to our route to
market andinnovation partnerships with
major customers, helping us to grow the
market for VICTREX™ PEEK. It is our lowest
cost toserve area, with limited R&D and a
low-touch business model to support
long-term customers. VARs sales
volumewas up 21% to 1,797tonnes
(FY2024: 1,488 tonnes).
12 months 12 months
ended ended %
30 Sept 30 Sept % change
2025 20 24 * change (constant
£m £m (reported) currency)
Revenue 233.9 229.1 2% 5%
Gross profit 88.5 84.9 4% 13%
* Restated to reflect non-implantable medical reclassification from Sustainable Solutions
toMedical segment (see note 2).
ELECTRONICS
Within Electronics, Global Semiconductor
and Consumer Electronics markets comprise
approximately two-thirds of our exposure.
Electronics sales volumes grew 2% at 464
tonnes (FY 2024: 454 tonnes), though we
saw some slowdown in the second half year,
in line with market data.
VICTREX™ PEEK has a range of applications
serving Electronics, which include CMP rings
(for Semiconductor), material used in the
chip manufacturing process and to support
smart devices. In smart devices, our APTIV™
film underpins small space acoustic
applications, including in speaker diaphragms
and related components. We also continue
to see business in home appliances and
related applications. Opportunities driven
by6G mobile applications and related
areasoffer good growth prospects.
ENERGY & INDUSTRIAL (‘E&I’)
VICTREX™ PEEK has a long-standing track
record of durability and performance in
many demanding Oil & Gas applications,
where lightweighting, durability and
performance are key. Metal replacement
remains a key trend and with higher activity
levels within the industry, sales volume of
705 tonnes was up 17% on the prior year
(FY 2024: 604 tonnes).
General Industrial accounts for over half of
the sales volume within this end-market.
Our development of VICTREX™ PEEK as a
PFAS (Per and Polyfluoroalkyl chemicals)
alternative continues to make good progress.
TRANSPORT (AUTOMOTIVE
&AEROSPACE)
Our products have supported ‘avoided
emissions’ for over 30 years, through
underpinning CO
2
emission reduction, which
is a key megatrend. We replace metal on
light vehicles and on a range of aircraft, with
content per plane currently varying from 100kg
to 500kg, dependent on the application.
Transport sales volume was down 1% to
1,012 tonnes (FY 2024: 1,022 tonnes), with
Aerospace down 2% and Automotive down
1%. This performance reflects order phasing
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
26 Victrex plc – Annual Report 2025
MEDICAL
GOOD GROWTH IN NON‑SPINE AND
NON‑IMPLANTABLE; SPINE REMAINS
CHALLENGING
MEDICAL REVENUE
£58.8m
-5% vs FY 2024*
MEDICAL GROSS PROFIT
£44.1m
-11% vs FY 2024*
12 months 12 months
ended ended %
30 Sept 30 Sept % change
2025 20 24 * change (constant
£m £m (reported) currency)
Revenue 58.8 61.9 -5% -2%
Gross profit 44.1 49.4 -11% -7%
* Restated to reflect non-implantable medical reclassification from Sustainable Solutions to
Medical segment (see note 2).
CHALLENGES IN SPINE
Whilst we remain cautious about the
prospects in Spine, PEEK retains advantages
over titanium in many respects and that the
first porous spinal cages using PEEK-
OPTIMA™ are expected tobe available in
the coming year. We therefore expect to see
a reduction in the rate of decline in Spine.
With Non-Spine showing good growth, a
stabilisation in USSpine offers the prospects
of a return tooverall revenue growth in this
division. Visibility remains limited.
DIVERSIFICATION WITHIN
MEDICAL
Beyond our next generation Porous PEEK,
which has regulatory approval in the US,
and offers an alternative to titanium 3D
printed or porous spinal cages, we also
continue to assess further next generation
opportunities within Spine.
New application areas
Cardio (PEEK used in artificial hearts and
heart pumps) was a key growth driver
withinNon-Spine this year, as well as Active
Implantable devices. PEEK’s inert nature and
biocompatibility remain key drivers. There is
also a growing opportunity for PEEK in
pharmaceutical contact (part of Non-Spine),
where PFAS containing materials are in direct
contact with the active pharmaceutical
ingredient. Our sales pipeline remains strong.
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27Annual Report 2025 – Victrex plc
RISK
Risk
assessment
Risk
response
Risk
governance
RISK
MANAGEMENT
Risk management is embedded in Victrex’s culture, ensuring that we
assess risks as part of delivering our strategy.
1
RISK AGENDA
WHY DO WE UNDERTAKE
RISKMANAGEMENT?
Risk objectives
Victrex undertakes risk management with
the objective of facilitating better decision
making, resilience and sustainability in order
to stabilise and improve the performance of
our business. In today’s challenging market,
with increasing competition, it is important
we continue to drive innovation and
differentiated offerings. The enterprise risk
management framework ensures risks are
identified across the business, owned and
appropriately managed, and linked to our
strategic imperatives so that impacts on
delivery of our strategy can be identified
and managed.
The Board is responsible for reviewing
thedesign and effectiveness of the risk
management systems, and for determining
the Company’s risk appetite in delivering our
strategy, which is set out on pages 10 to 13.
We have an established framework for risk
appetite classification which guides our
approach to managing principal risks. For
example, our ‘very low’ appetite for risk in
areas such as Safety, Health and Environment
(‘SHE’), and cyber security means that the
avoidance of risk and vulnerabilities is a key
objective, and when faced with multiple
choices, we will generally take the lowest
risk option.
This contrasts with our more ‘open’ appetite
to risk for strategic growth opportunities,
meaning thatwe will consider a wider set of
potential approaches that balance the merits
of both risk and reward.
As a company focused on delivering
sustainable solutions to our customers, we
also believe that Victrex is ready to meet the
demands of the ESG agenda within our own
business while recognising the risks and
costs associated with stricter emissions
targets, life cycle impacts and other
requirements.
Risk strategy
The Board is responsible for ensuring
theeffective operation of the Group’s risk
management framework and for ensuring
risk management activities are embedded
inour processes. The Board is also
responsible for ensuring that appropriate
andproportionate resources are allocated
torisk management activities.
2
RISK ASSESSMENT
When assessing risk, management considers
in detail:
•
external factors, including legal and
regulatory, environmental, social and
governance (‘ESG’), and market factors
arising from the environment in which
we operate; and
•
internal factors arising from the nature
ofour business, the effectiveness of our
internal controls and processes, and our
decision making.
Risk agenda
ANALYSIS AND RECORDING
OFRISKS
Our divisional and functional leaders are
responsible for the day to day management
and reporting of risks. An enterprise risk
management (‘ERM’) system is operated
across the business for the capture and
reporting of risk, to ensure consistency of
approach in the identification and evaluation
of risks. The Management Team documents
identified risks in the ERM, including new
and emerging issues, maps these to the
principal risks and ensures risks are managed
appropriately, escalating where required.
Each risk is evaluated based on its likelihood
of occurrence and severity of impact on
business performance at both a gross and
net (after mitigation) level. Risk reviews take
place quarterly between the business
leaders and the Risk Management team to
review current mitigations and identify any
further activities required to bring the risk to
a tolerable level.
We operate a three lines of defence risk
assurance model:
1st line of defence:
The day to day operational risk
management, including the systems and
processes established to ensure internal
controls are in place and effective.
2nd line of defence:
Monitoring and compliance activities which
advise and oversee first-line controls and risk
management processes, primarily through
Group functions that are at least one step
removed from first-line management.
3rd line of defence:
Independent business assurance provided
byboth third parties and the Group Internal
Audit team over the first and second lines
ofdefence.
3
RISK RESPONSE
Risks and risk registers are regularly
re-evaluated and challenged so as to remain
relevant to the changing environment in
which we operate which could affect our
strategic objectives.
For each risk, we decide whether to
eliminate the exposure, mitigate it through
appropriate internal controls or mitigating
actions, transfer it (e.g. through insurance)
or tolerate any residual risk.
1
2 3 4
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28 Victrex plc – Annual Report 2025
We continually challenge and evaluate
theefficiency and effectiveness of existing
internal controls and seek to continually
improve our risk management framework.
The risk process ensures that risks are owned
and risk reduction activity is captured and
managed through action plans which aim to
ensure risk taking remains within appetite.
Oversight is provided by the specialist Risk
and Compliance team which has regular
reviews with management across the
business. Following an independent maturity
assessment conducted by KPMG during 2024
an improvement plan was designed and
delivered during FY 2025 to strengthen
therisk management framework.
When a significant new risk arises or
newlegislation is introduced (e.g. ECCTA
inFY2025) requiring a timely response,
adedicated working group is established to
ensure that robust oversight and management
are applied and appropriate mitigations
areimplemented.
We use insurance as a mitigation tool in our
response to several risks and potential financial
impacts that can result. We regularly review
and update the types and limits of our
insurance coverage, e.g. for cyber security,
ensuring that they are aligned to external
obligations, insurance product developments
and changes to our corporate risk profile.
The insurance programme and levels of
cover are reviewed annually by the Board.
4
RISK GOVERNANCE
The following processes are in place to provide
effective risk governance:
•
the Board is responsible for approving the
risk management policy and determining
the nature and extent of the risks it is
willing to take in achieving its strategic
objectives. The Board considers the
continued effectiveness of risk management
processes, controls and culture, changes
to principal risks and their management,
and the quality of our public reporting
process. Twice yearly, the Board carries
out a comprehensive review of the
principal risks;
•
the Audit Committee responsibilities
include reviewing the Company’s risk
management systems to provide assurance
on the effectiveness of financial and
operational controls to ensure compliance
with laws, regulations and contracts;
•
the Risk & Compliance function supports
the Audit Committee in its review of the
effectiveness of the system of internal
control, as do the external auditors on
matters identified during the course of
their statutory audit work;
•
the Group’s internal audit function
provides independent and objective
3rdline assurance to the Audit
Committee on the adequacy and
effectiveness of our risk management
and key internal control frameworks
within the business. A comprehensive
‘audit universe’ assessment defines the
range of potential audit activities and
includes risk assessments based on
current and historic activity, and is
maintained by the internal audit function.
The risk-based internal audit plan provides
the schedule of audit work that covers
core processes, key programmes and
geographic regions, aligned to our
strategic imperatives, and is approved
annually by the Audit Committee;
•
the Executive Risk Committee (‘ERC’),
chaired by the CFO, reviews the corporate
risk register at least half yearly to ensure
it remains appropriate and effective.
During the year feedback from these
reviews is provided directly to the Audit
Committee and the Board by the Director
of Audit & Risk. The ERC is attended by
the full Victrex Management Team (‘VMT’)
which comprises: the Executive Directors
(CEO and CFO), Managing Directors of
the Medical and Sustainable Solutions
businesses, the Chief Operating Officer
(COO), Group HR Director, General Counsel
& Company Secretary and the Director
ofInvestor Relations. Risk management
subcommittees provide further governance
at divisional and functional levels and
formajor programmes where they are
deemed necessary depending on current
business activity;
•
the quarterly VMT Risk and Compliance
review provides oversight of the risks,
controls and assurance activity across the
business including Legal, Regulatory, SHE,
Quality, Security (including cyber) and
Internal Audit. Membership comprises the
CEO, CFO, COO, Managing Directors,
Group HR Director and the General Counsel
& Company Secretary alongside a number
of other senior leaders from 2nd line risk
management functions;
•
as appropriate, significant incidents, issues
and new risks are reported to the Board
via the relevant Executive Director; and
•
risk management is an integral aspect
ofGroup functional governance, including
through the SHE steering committees
(quarterly), Process Safety Steering meetings
(monthly), Quality product review meetings
(monthly) and the ESG steering group
(which meets twice a year).
EMERGING RISKS
The Board has identified and assessed
emerging risks or areas of increased focus
aspart of the established risk management
and strategic planning processes. The key
emerging risk areas identified were:
•
further geo-political and macro-economic
instability, including:
•
impacts on supply chains and end
markets resulting from escalation of
tensions in Ukraine and developments
in the Middle East;
•
ongoing geo-political tensions,
including the unpredictability of
import/export tariffs and their impact
on global supply chains and therefore
customer demand; and
•
increasing competition, including
inEurope, putting pressure on
sellingprice;
•
increasing prevalence and success of
cyber-attacks, particularly ransomware,
on a broader range of targets,
particularly in the UK;
•
business resilience, which is increasingly
a factor in external and customer audits
and which has been given particular
focus during FY 2025; and
•
future of end markets – directing
focusand resources to sustainable
endmarkets and products with
environmental & societal benefits
inlinewith global megatrends.
These emerging or changing risks have been
recorded and will be continually monitored
through the ongoing Corporate Risk
Management process so that their potential
impact can be further understood and
mitigated. They will also be considered as
anintegral part of the strategic planning
process, aligned with Victrex’s risk appetite.
CLIMATE-RELATED RISKS
ANDOPPORTUNITIES
We continue to develop our climate-related
risks and opportunities (see pages 44 to 49),
monitoring changes in regulation and
legislation. A focused risk assessment covering
ESG risks is in place, with clear links to existing
principal risks such as Supply Chain and
Strategy Execution with oversight from the
Corporate Responsibility Committee.
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29Annual Report 2025 – Victrex plc
RISK CONTINUED
MANAGING
OURRISKS
The Group’s strategic objectives can only be achieved
if certain risks are taken and managed effectively. We
have listed below the most significant risks that may
affect our business, although there are other risks
that may occur and impact the Group’s performance.
RISK HEATMAP
1
Safety, Health and Environment
2
Recruitment and retention of the right people
3
Supply chain
4
Network and IT systems & cyber security
5
Product liability
6
Legal and regulatory compliance, ethics
andcontracts
7
Strategy execution
8
Geo-political and macro-economic environment
Impact
Likelihood
2
1
3
5
6
84 7
Low
Low
High
High
1
SAFETY, HEALTH ANDENVIRONMENT
Primary link to strategy Link to climate change
RISK AREA AND DESCRIPTION
Delivery of our strategy is dependent on us conducting our
business safely. Given the nature of our various manufacturing
facilities, a significant operational disruption could adversely affect
the safety of people on or close to our sites. Disruption could also
impact our ability to make and supply products.
The environment in which we operate is subject to numerous
legislative and regulatory requirements. A failure of our controls
could adversely impact the local environment, our employees, our
manufacturing capability, or the attractiveness of our business or
products to various stakeholders.
Our ability to respond effectively to climate change faces a
number of challenges, including our ability to access green energy
sources. Minimising our environmental impact and ensuring future
business sustainability as we transition to a low carbon economy
remain fundamental objectives.
MITIGATION
SHE remains our number one priority. We have policies and
procedures to manage our operations, protect the safety and
health of our employees, contractors and visitors, and manage our
environmental responsibility by reducing emissions to continually
improve our resource efficiency.
The SHE function has been structured to ensure adequate and
specific focus on both process safety management (‘PSM’) and
occupational health and hygiene. Following an increase in minor
injuries, our safety ‘Golden Rules’ and risk assessment training has
been refreshed; and a new campaign to refocus on safety across
the organisation was launched, led by the CEO, resulting in
improvements in safety outcomes.
Significant focus is placed on process safety hazards and control
procedures, and we partner with external leaders to provide
additional independent assessment and assurance of relevant
plants and processes. Any events or near misses that do occur
areinvestigated to determine root causes and remedial actions
areput in place to prevent re-occurrence.
SHE management software has been updated during FY 2025
acrossall global assets to further support this and we have SHE
improvement plans and KPIs that are monitored and reviewed
monthly, alongside SHE and PSM Steering Committees for people
and process safety which provide oversight and governance.
Change
No change
Viability statement links
Risk considered
Risk modelled in sensitivity analysis
Climate change risk is embedded in our
other risk assessments and noted with the
link to climate change key.
Strategy and KPIs
Pages 10 to 15
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30 Victrex plc – Annual Report 2025
3
SUPPLY CHAIN
Primary link to strategy Link to climate change
RISK AREA AND DESCRIPTION
Failure to maintain a secure supply of high quality products to our
customers globally could lead to loss of earnings and damage to
reputation. This could be caused by, for example, incapacity of our
production facilities, quality failure or restricted access to raw
material supplies or transport links potentially leading to
insufficient levels of inventory and/or manufacturing capacity.
Climate change poses several specific supply-related risks both
tous and to our suppliers, including potential asset or production
disruptions due to rising sea levels and increasingly harsh weather
events or cost impacts due to changes in carbon taxation and
increased energy costs.
MITIGATION
Our policy is to keep capacity ahead of demand by continually
investing in our supply chain so that our customers can be confident
that we can meet their requirements today and in the future.
In FY 2025 we gained IATF16949 accreditation in recognition of
the strength of our customer-focused controls.
We have a robust, Class A standard Integrated Business Planning
(‘IBP’) process in place through which changes in demand are
anticipated and appropriate supply is maintained.
Strategic supplier sourcing, development and performance
management are our key mitigations for the quality and security
ofsupply of key raw materials. We have continued to focus on the
breadth and resilience of our supplier base in response to the current
and future uncertainties. This has included a strategic increase in the
number of suppliers of key materials, a reduction in single-source
suppliers, and focused supplier assessments and audits.
We also consider alignment with our Modern Slavery and Human
Rights policies within our supplier review process.
In our own operations, we have reviewed the possible contingencies
for energy interruptions affecting our manufacturing sites, including
the use of alternative fuel sources.
During FY 2025 we have refreshed our business continuity
management system, including resilience and response plans
toprotect security of supply.
Change
No change
Viability statement links
Risk considered
Risk modelled in sensitivity analysis
2
RECRUITMENT AND RETENTION
OFTHE RIGHT PEOPLE
Primary link to strategy Link to climate change
RISK AREA AND DESCRIPTION
Our success depends on our ability to recruit and retain the
rightpeople. We rely on the skills, knowledge, experience and
competence of our people in order to drive business growth
andsuccessfully deliver our downstream strategy.
Due to the nature of our business, there is an inherent requirement
for highly skilled employees (for example in areas of polymer
chemistry, R&D and process engineering) and the specific end
market-related competencies needed (for example in medical
andaerospace parts manufacturing).
Our ability to recruit and retain talent is affected by numerous
factors including: upholding our values, pay and benefits,
sustainability credentials, the nature of the working environment,
regional employment levels and changing workforce behaviours.
The recruitment market continues to show that there is an
expectation for flexible working arrangements and less
dependency on location-based roles.
MITIGATION
Throughout FY 2025, structural enhancements within the Sustainable
Solutions and Medical divisions have been successfully embedded,
enabling a sharper focus on building capability in critical roles. This
progress has been underpinned by the implementation of a refreshed
and effective approach to talent pipelining, learning and development.
We have continued to expand the reach of our external recruitment
campaigns, resulting in more diverse candidate pools and hires.
This has positively influenced performance expectations across the
organisation. To further strengthen our employee value proposition,
we have consistently launched new attraction collateral, targeting
both internal and external audiences.
Our Employee Resource Groups (‘ERGs’) have played a pivotal role
inshaping compelling attraction narratives, appealing to a broad
spectrum of talent from emerging professionals to experienced hires.
Looking ahead to FY 2026, our emerging careers programme will be
enhanced through the launch of the Apprentice Academy, which will
offer integrated business and life skills alongside vocational training.
For the second consecutive year, we are proud to have been
recognised in The Sunday Times Best Places to Work list. We
continue to operate our annual Organisational Capability Review
(‘OCR’), which remains central to evaluating role transitions,
supporting succession planning and promoting internal mobility
across disciplines preserving institutional knowledge while creating
new career opportunities.
Recent changes to our variable pay framework, including the
introduction of new bonus and share schemes, have been well
received and are contributing to a more compelling total
rewardoffering.
Change
No change
Viability statement links
Risk considered
Key to strategy
Drive core business Differentiate through innovation Create and deliver futurevalue Underpin through safety,
sustainabilityandcapability
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31Annual Report 2025 – Victrex plc
RISK CONTINUED
4
NETWORK AND IT SYSTEMS
& CYBER SECURITY
Primary link to strategy Link to climate change
RISK AREA AND DESCRIPTION
Targeted cyber-attacks could result in the theft, manipulation or
destruction of confidential and sensitive information and severely
disrupt business operations.
Significant failure of, or interruption to, our IT or OT systems or
services could lead to business process disruption.
The adoption of AI technologies, if used inappropriately, could
exacerbate risks around data creation and management including
accountability for data integrity, data protection and privacy, and
loss of IP.
We note the increased prevalence of disruptive cyber-attacks on
prominent businesses in the UK and wider world and continue to
keep abreast of what is a fast-changing landscape.
MITIGATION
Victrex operates a Global Information Security Management System
aligned to ISO 27001 and National Institute of Science and Technology
standards, providing a multi-layered approach to security and control.
We continue to make enhancements to the control framework
and layers of defence using Extended Detection and Response,
and Security Incident and Event Management technologies, along
with next generation firewalls and Network Access Control and
aglobal software defined LAN and WAN for our core network.
Independent external experts conduct annual penetration
testingand assess cyber health and awareness. Victrex is certified
toCyber Essentials Plus, and we hold the Trusted Information
Security Assessment Exchange accreditation. We have a global
incident response plan, supported by third-party experts, for
crisisresponse within both IT and OT networks.
Our internal Security Operations Centre and team provide round
the clock detection and response capabilities. We recognise the
increased prevalence of cyber-attacks and continuously review the
latest threats and trends in cyber and IT security to ensure ongoing
controls effectiveness. To support this we have enhanced cyber
security awareness across the business through mandatory training
and a culture monitoring platform, applicable to all users, and
conduct exercises to test our resilience and response capabilities.
We have completed implementation of a new ERP system D365
and reduced dependence on legacy systems.
We have provided guidance on the safe use of AI and cloud-based
technologies and all staff are trained in protective practices to
mitigate the risks associated with cyber-attacks.
Change
No change
Viability statement links
Risk considered
5
PRODUCT LIABILITY
Primary link to strategy Link to climate change
RISK AREA AND DESCRIPTION
Selling into highly demanding end use applications and regulated
markets such as Medical and Aerospace means a failure to supply
in accordance with the agreed specification has the potential to
lead to consumer harm or a potential product liability claim.
This could result in fines or damages being payable and could in
turn lead to a loss of business and reputational damage.
MITIGATION
Robust regulatory standards and accredited quality management
systems are in place relevant to our markets, including medical
devices, automotive and aerospace.
We have established Risk and Warranty Committees which provide
additional governance overour key programme activity in the
Automotive and Aerospacesectors to ensure adequate consideration
of complex contract terms, with involvement of our Legal team
where deemed appropriate.
We continue to utilise external experts to support with complex
contract matters, where required. We use supply contract terms and
conditions to limit exposure, which include agreed specifications
and manufacturing to defined standards and processes. In addition,
the Group maintains appropriate levels of product liability insurance.
We have effective product regulatory control procedures and
governance arrangements delivered through the Regulatory and
Product Stewardship (‘RAPS’) team including established specialists
in key markets such as China. Recognising the core importance
ofproduct quality, our RAPS and Quality Assurance teams are
integrated across the Group.
Supplier risk management processes have been a focus of attention
during FY 2025 with an improvement programme ongoing through
FY 2026 to strengthen our supplier management processes.
A robust Management of Change process is used to ensure that
supply and quality are consistent and any change in process,
system or use is appropriately validated.
During FY 2025 we gained IATF16949 accreditation in the UK.
Change
No change
Viability statement links
Risk considered
Risk modelled in sensitivity analysis
Strategy and KPIs
Pages10 to 15
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
32 Victrex plc – Annual Report 2025
6
LEGAL AND REGULATORY
COMPLIANCE, ETHICSAND CONTRACTS
Primary link to strategy Link to climate change
RISK AREA AND DESCRIPTION
We are required to adhere to all applicable laws, regulations
andethical standards including those covering:
•
anti-bribery and corruption;
•
exports controls and sanctions;
•
competition;
•
data protection; and
•
human rights, modern slavery and labour.
Increasingly, geo-political factors pose additional complexities to
navigate in several areas including export controls and sanctions.
Any failure to comply with contractual commitments and ethical and
regulatory compliance standards has the potential to result in loss of
earnings, civil or criminal legal exposure, or reputational damage,
and could affect our ability to achieve the business strategy.
Our future opportunities in a number of markets bring new
regulatory challenges and contractual requirements.
MITIGATION
Compliance policies, procedures and training are in place for key
regulatory compliance risks and have been refreshed during FY2025.
Our Code of Conduct is regularly reviewed and annual refresher
training is mandated. Compliance is monitored and reported to
the VMT risk and compliance meeting.
We continue to use internal and external subject matter experts to
support risk identification, set standards and policies, and provide
advice and training. We seek external specialist support as needed,
and our Internal Audit team has embedded legal and regulatory
compliance testing into all audits (where applicable) to provide
ongoing assurance.
Commercial contracts and our pricing strategy are reviewed by
ourLegal and Product Management teams.
As our business activities continue to expand, appropriate
measures are put in place to manage the associated legal and
regulatory requirements and ensure understanding and
compliance across all territories in which we operate.
We have a dedicated Regulatory and Product Stewardship team
inplace covering all markets in which we operate, and which also
incorporates our Quality Assurance team.
Horizon-scanning is in place for all relevant functions to identify
any emerging risks.
Change
No change
Viability statement links
Risk considered
Risk modelled in sensitivity analysis
7
STRATEGY EXECUTION
Primary link to strategy Link to climate change
RISK AREA AND DESCRIPTION
Our future business growth is dependent on the effective
implementation of our strategy.
This risk considers the potential failure to execute the strategy
effectively and generate value from our investment in our strategic
programmes. Key elements include: maintaining the health of our
core business; generating innovation-based growth by driving
adoption of parts and forms in addition to polymer; driving
growth in China through our new assets; and protecting and
managing intellectual property.
Successfully managing the climate-related risks and opportunities
summarised in the TCFD section pages 44 to 49 remains
fundamental to the successful execution of the business strategy.
MITIGATION
The Group has a well-established, clear business strategy which
issubject to a robust annual Board review process to ensure its
continued effectiveness. The Board monitors progress in implementing
the strategy and is given updates from specific programmes
throughout the year. While the change in CEO leadership presents
an inherent risk, it also brings opportunities for new insights.
The start of FY 2025 saw a new organisational structure designed
and implemented to focus on programme delivery and drive forward
our innovation strategy, working with a growing number of key
customers while ensuring appropriate focus on our core business
and addressing the challenges to the top line.
Our UK manufacturing improvement plans have continued and
will be delivered over the coming years which will strengthen the
security of supply to our customers.
We continue to offer a strong value proposition as a solutions company
through unique chemistry, product quality and technical service,
working alongside our customers in developing new applications,
leveraging the performance and sustainability benefits of our products.
We monitor technological changes to materials and potential
challenges and opportunities for PEEK and PAEK polymers by
developing new grades with differing properties, as well as
creating new markets for PEEK/PAEK polymers. Programme
governance is achieved through Strategic Portfolio Management
which tracks milestone achievement.
As our intellectual property (‘IP’) is critical to the delivery of our
strategy, robust protective controls are in place as well as for identifying
new IP, which are supported by our dedicated global IP team.
Change
No change
Viability statement links
Risk considered
Risk modelled in sensitivity analysis
Key to strategy
Drive core business Differentiate through innovation Create and deliver futurevalue Underpin through safety,
sustainabilityandcapability
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
33Annual Report 2025 – Victrex plc
RISK CONTINUED
8
GEO-POLITICAL AND
MACRO-ECONOMIC ENVIRONMENT
Primary link to strategy Link to climate change
RISK AREA AND DESCRIPTION
We serve over 40 countries globally, operating in numerous
geographies across a range of markets which can be affected by
political and/or economic changes or uncertainties. In many cases
weexport products to one jurisdiction which are then converted into
parts and re-exported to markets around the world.
Risks related to the geo-political and macro-economic conditions
have continued to increase over the year, primarily as a result of
the ongoing war in Ukraine, continued conflict in the Middle East,
and international tensions caused by the imposition of barriers to
international trade, such as tariffs. The increasing scale of competition
from PEEK manufacturers in China and their approach, particularly
to Western markets, also poses risks to our established business.
While inflation has steadied, uncertainty in the global economic
outlook including potential changes in carbon taxation, energy
pricesand impacts on interest and exchange rates have the potential
toaffect our profitability. This is compounded through impacts on end
customer demand, cost pressures, competitive dynamics and other
factors including the increased prevalence of economic nationalism vs
globalisation having consequences for international trade. Increased
levels and cost of debt for Western economies is impacting fiscal policy.
This external environment has the potential to impact a number of
other principal risks and the delivery of our strategic objectives.
MITIGATION
This risk separates the external factors from the strategy execution
risk and remains high partly due to the current volatility caused by
unpredictable US and retaliatory tariffs creating uncertainty in the
markets with impacts on customer demand. The Board has received
updates from external experts to provide independent context to this
area of risk.
A key mitigation is close monitoring of the geo-political and
macro-economic conditions and reacting accordingly with scenario
plans in place and under continuous review to respond to changes in
customer demand and agility through the business strategy process.
Our range of markets and geographic spread help to mitigate political
and economic change. Threats from low cost competitors are being
addressed through our strategy in China where we are now selling
product into the Chinese market.
Uncertainty in supply chains has been addressed by increasing
supplyresilience around dual/multiple sourcing of key raw materials.
Maintaining UK production of these ensures we are not solely
reliant on international routes and gives a potential advantage
intimes of uncertainty.
We use foreign exchange hedging to delay the impact of changes
in exchange rates.
Change
No change
Viability statement links
Risk considered
Risk modelled in sensitivity analysis
Key to strategy
Drive core business
Differentiate through innovation
Create and deliver futurevalue
Underpin through safety,
sustainabilityandcapability
Strategy and KPIs
Pages10 to 15
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
34 Victrex plc – Annual Report 2025
GOING CONCERN AND VIABILITY STATEMENT
GOING CONCERN
The Directors have performed a robust
going concern assessment including a
detailed review of the business’ rolling
forecast and consideration of the principal
risks faced by the Group and the Company,
as detailed on pages 28 to 34. This
assessment has paid particular attention to
current trading results and both the impact
of the ongoing global economic andsector
specific challenges on the aforementioned
forecasts.
Both the Group and the Company maintains
a strong balance sheet providing assurance
to key stakeholders, including customers,
suppliers and employees. The Group had net
debt of £24.8m at 30 September 2025, a
reduction of £15.9m from 31 March 2025, and
an increase of £3.7m from 30September 2024.
The increase in net debt during the year
largely relates to the payment of dividends
in February 2025, £40.1m, and June 2025,
£11.7m. Underlying operating cash
conversion improved to 121% for the year
ended September 2025 from 114% for the
year ended September 2024, supported by
lower capital expenditure and the ongoing
reduction in the inventory position. The Group
drew on its UK revolving credit facility during
the period to pay the final dividend, with
amaximum drawn down of £18m (£26m
maximum drawn down in the year ended
30September 2024), before fully repaying the
facility by the end of the year from operating
cash flows. Of the gross debt position of
£49.0m, £19.4m is due within one year. The
Group maintains a cash balance sufficient
tomanage short-term liquidity and provide
headroom against ongoing trading volatility.
The cash balance at 30 September 2025 was
£24.2m. Approximately 50% is held in the
UK, on instant access, where the Group incurs
the majority of its expenditure. At the date
of this report, the Group has drawn c.£32m
of its Chinese banking facility in its Chinese
subsidiaries (with a total facility of c.£40m
available until June 2029, subject to
continuing to meet draw down criteria
which will be reassessed in November 2026
as detailed below) and has unutilised UK
banking facilities of £60m through to
October 2028 of which £40m is committed
and immediately available and a further
£20m is available subject to lender approval.
The rolling forecast is derived from the
Group’s Integrated Business Planning (‘IBP’)
process which runs monthly. Each area of
the business provides forecasts which
consider a number of external data sources,
triangulating with customer conversations,
trends in market and country indices as well
as forward-looking industry forecasts: for
example, forecast aircraft build rates from
the two major manufacturers for Aerospace;
rig count and purchasing manager indices for
E&I; World Semiconductor Trade Statistics
semiconductor market forecasts for
Electronics; and Needham and IQVIA
forecasts for medical procedures.
The assessment of going concern included
conducting scenario analysis on the
aforementioned forecast. Whilst Sustainable
Solutions has seen a continued recovery in
sales volumes during FY 2025, although
revenue growth was lower due to sales mix,
Medical continues to experience lower
demand, primarily in Spine which is offsetting
strong progress in other application areas,
with Medical sales reducing for the second
year in a row since the record FY2023.
Witheconomic forecasts remaining mixed,
particularly for the chemical sector, and
supply chains continuing to be cautious
inboth segments, the scenario analysis
performed by management focuses on the
Group’s ability to sustain a further period of
suppressed demand in Medical and a return
to lower volumes in Sustainable Solutions. In
assessing the severity of the scenario analysis
the scale and longevity of the impact
experienced during previous economic
downturns have been considered, including
the differing impacts on the Sustainable
Solutions and Medical segments.
Using the IBP data and the reference points
from previous economic cycles, management
has created two scenarios to model the
impact of a reversal of the recovery seen
inSustainable Solutions since January 2024
and the continuing effect of softer demand
within Medical at a regional/market level
and aggregated levels on the Group’s profits
and cash generation through to January 2027
with consideration also given to the six months
beyond this. The impact of climate change is
not considered to have a significant impact
over the going concern period and, as a
result, the scenario testing noted below
does not incorporate any additional
sensitivity specific to climatechange.
The Directors have modelled the
followingscenarios:
Scenario 1 – Sustainable Solutions demand
reduces back to the levels seen before the
recovery in volumes for a period of six months
from January 2026, before recovering to the
levels seen in the past 12 months for the
remainder of the going concern period.
Medical revenue remains in line with the
softer level experienced during FY 2025
through to June 2026 before recovery
commences at a rate of 10% per annum
through the remainder of the going concern
period. Inventory is reduced in line
withsales.
Scenario 2 – In line with scenario 1 through
to June 2026 but with the lower demand
continuing throughout 2026, i.e. throughout
the going concern period. This would give
an annualised volume below c.3,500 tonnes,
a level not seen since 2013 with the exception
of the COVID impacted FY 2020. In this
scenario softer demand would continue
toimpact Medical revenue which would
remain at an annualised revenue comparable
to FY 2025 of c.£58m throughout the going
concern period, a level, prior to FY 2025,
not seen in the past 10 years. Inventory is
reduced in line with sales. The Directors
consider scenario 2 to be a severe but
plausible scenario.
Following operational challenges sales
fromthe new PEEK manufacturing facility in
China have remained at a modest level during
FY 2025; however, with the challenges now
largely resolved and the Commercial team
inplace to more aggressively pursue the
opportunities, volume growth is forecast
toaccelerate. Whilst this happens there is a
period where additional funding is required
to see it through to net cash generation.
Inconcluding on the going concern position,
ithas been assumed that the Group will
provide the additional funds in full, which
the Board considers to be the worst case
scenario. The locally provided external funding
is due for repayment in December 2026.
TheGroup has agreed to refinance this facility
through to June 2029 with the drawdown
of a new facility in November 2026 to
repaythe existing facility. This facility is
notcommitted until it is drawn down and
therefore the going concern assessment
assumes that the £24.6m is repaid by
December 2026, which would require
apartial drawdown of the UK revolving
credit facility in each of the scenarios.
Before any mitigating actions the sensitised
cash flows show the Group has significantly
reduced cash headroom, which would require
continued use of the committed UK banking
facility during the going concern period. The
level of facility drawn down is forecast to be
similar with the past two financial years. The
level of facility drawn down is higher in
scenario 2 but in neither scenario is the
committed facility fully drawn, nor drawn
down for the whole year. With cash levels
lower than has historically been the case for
Victrex, particularly if the aforementioned
new China bank facility is not drawn down
and therefore the existing facility requires
repayment using the UK revolving credit
facility, or other as yet unsecured new
facilities, in December 2026, the Group and
the Company have identified a number of
mitigating actions which are readily available
to increase theheadroom.
These include:
•
Use of committed facility – the
undrawn committed facility could be
drawn at short notice. Conversations
with our banking partners indicate that
the £20m uncommitted accordion could
also be readily accessed. The covenants
of the facility have been successfully
tested under each of the scenarios;
•
Securing additional debt facilities
– the company could seek to obtain
additional debt from existing banking
partners or other potential lenders;
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
35Annual Report 2025 – Victrex plc
GOING CONCERN AND VIABILITY STATEMENT CONTINUED
GOING CONCERN CONTINUED
•
Deferral of capital expenditure – the
base case capital investment over the next
12 months is lower than recent years with
major projects now completed. This could
be reduced further by limiting expenditure
to essential projects and deferring all
other projects later into 2026 or beyond;
•
Reduction in discretionary overheads
– costs would be limited to prioritise and
support customer-related activity;
•
Further reduction in inventory levels
– the elevated inventory level seen at
theend of FY 2023 has been partially
unwound across FY 2024 and FY 2025
with a further reduction targeted in
FY2026. The scenarios noted above
include an acceleration of the inventory
unwind but a more aggressive approach
could be taken to provide additional
cashresources; and
•
Reduction/deferral/cancellation of
dividends – the Board considers the
cash position and interests of all
stakeholders before recommending
payment of a dividend. A dividend has
been proposed for payment in February
2026 of c.£40m and in the past an
interim dividend of c.£12m has been paid
in July, giving a combined annual
outflow of c.£52m.
Reverse stress testing was performed to
identify the level that sales would need to
drop by in order for the Group or Company
to be unable to meet its liabilities as they fall
due before the end of the going concern
assessment period. Sales volumes would
need to consistently drop materially below
the low point in scenario 2 which is not
considered plausible.
As a result of this detailed assessment and
with reference to the Group and Company’s
strong balance sheet, existing committed
facilities and the cash preserving levers at
the Group and Company’s disposal, but
alsoacknowledging the current economic
uncertainty created by the increase in global
tariffs, particularly in the US, the depressed
chemical sector and the war in Ukraine
continuing, the Board has concluded that
both the Group and Company have sufficient
liquidity to meet their obligations when they
fall due for a period of at least 12 months
after the date of this report. For this reason,
they continue to adopt the going concern
basis for preparing the financialstatements.
VIABILITY STATEMENT
1. Assessment of prospects
The Directors have assessed the Group’s
longer-term prospects, primarily with
reference to the results of the Board-
approved five-year strategic plan. This is
driven by the Group’s business model
(detailed on pages8 and 9) and strategy
(detailed on page 10 to 13), which are
fundamental to understanding the future
direction of the business, while factoring
inthe Group’s principal risks (detailed on
pages 28 to 34) and the potential
opportunities and risks of climate change
(detailed on pages 46 to 47). The Directors
continue to consider the ongoing challenges
to the global economy, including the impact
on each market and geography which the
Group serves, and the uncertainty this
creates, particularly in the early years of
thestrategic plan. The Directors have also
considered the Group’s ability to generate
cash, manage shareholder returns and
maintain a strong financial position
throughout the economic cycle, including
the level of cash and overall net debt at
30September 2025.
The strategic planning process is undertaken
annually and includes analyses of profit
performance (including core business and new
product pipeline and ‘mega-programmes’),
cash flow, investment programmes (including
manufacturing capacity increases and
theacquisition pipeline) and returns to
shareholders. Completion of the strategic
plan is a Group-wide process engaging
employees throughout the business,
including all senior management in their
respective areas. The strategy was reviewed
and approved by the Board in March 2025
(covering the five years to September 2030).
The strategy is built market by market,
geography by geography recognising the
differing dynamics in each whilst also
considering the longer-term impact of the
Company achieving its goal of Net Zero
across all scopes by 2050, including reducing
2022 Scope 1 & 2 emissions by 50% by
theinterim testing date of 2032, combined
with the wider global ambition to reduce
carbon usage. The Company also operates
ashorter-term rolling 24-month forecast,
predicated on the IBP process, which forms
the basis for the 2026 budget and key
operational decisions over this shorter time
frame. The first year of the strategy has been
realigned to the 2026 budget, taking account
of changes to the economic outlook since
the strategy was finalised, with subsequent
years reviewed and updated where the
revisions to the first two years are expected to
have a consequential impact, either positive
or negative. The realigned strategy was
approved by the Board alongside the 2026
budget in October 2025 and has also been
used for the annual impairment review
detailed on page 149.
2. Viability period
The Directors have assessed the viability
ofthe Group over the five-year period to
September 2030, being the period covered by
the Group’s Board-approved strategic plan.
The Board considers five years to be an
appropriate time horizon for the strategic
plan, being the period over which the Group
actively focuses on its development pipeline
and resulting capital investment programme.
As part of the longer-term considerations,
tosupport capacity planning and assessment
of projects which will take longer to reach
meaningful revenue, the Group does prepare
forecasts for a period of more than five years;
however, a period greater than five years is
considered too long for the strategic plan
given the inherent uncertainties involved.
3. Assessment of viability
To make their assessment of viability, the
Directors have tested a number of additional
scenarios on the base case position of the
five-year strategic plan. These scenarios
encompass key trading assumptions
combined with the potential impact of
crystallisation of one or more of the
principal risks over the five-year period.
Whilst each of the principal risks has a
potential impact, the scenario analysis has
been focused on those considered to have
the most significant financial impact, primarily
to the revenue growth of the Group. The
risks have been assessed for their potential
impact on the Group’s business model,
future trading and funding structure.
The mega-programmes are forecast to have
a material impact on the Company’s revenue
over the strategic period. Progress continues
to be made across the mega-programmes
with milestones being achieved as outlined
in the Strategic report on pages 1 to 67
even though the translation of the progress
into revenue growth has been slower than
anticipated. The timing of future milestone
achievement and the resulting impact on
revenue growth remain the key variables
which the Directors have incorporated into
scenario 3 described below.
The impact on the strategy of both the
Company achieving its goal of Net Zero
across all scopes by 2050 and the wider
economy achieving Net Zero carbon over a
long period continues to be understood and
assessed. The physical risks and transitional
opportunities and risks have been considered
in detail as described in the Sustainability
report on pages 38 to 67. The physical risks
presented by climate change are not
expected to have a material impact on the
Company’s ability to manufacture product
over the strategy period and therefore no
sensitivity has been performed. At the
revenue level the transitional opportunities
are considered to outweigh the risks over
both the short and longer time horizons,
supporting continued growth in Company
revenues, albeit the impact of this is only
likely to be material outside of the five-year
strategy window. The primary transitional risk
relates to the additional capital and operating
costs associated with electrification of the
heat sources used in the manufacturing
processes, which primarily rely on the burning
of gas. Failure to do this will potentially leave
the Group exposed to the likely levers used
by regulators and governments to drive
down use of carbon – taxation and levies.
Work is ongoing to reduce the carbon usage
in the manufacturing process, both through
using green sources of electricity to supply
the aforementioned electrical heat sources
and redesigning the chemical process to
reduce the overall energy requirement and
waste generation. Acknowledging the risk
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
36 Victrex plc – Annual Report 2025
to the decarbonisation of the manufacturing
process, primarily in respect of timing, and
increased cost of operation have been assumed
in scenario 5. The Company would seek to
recover this cost from customers but for the
purpose of the scenario analysis a worst case
position of no recovery has been assumed.
The scenarios tested were carefully considered
by the Directors, factoring in the potential
impact, probability of occurrence and the
effectiveness of the mitigating actions. In
addition, whilst considered implausible, a
combined scenario (scenario 6) was also
tested, which contained an aggregation of
all scenarios considered. Consistent with
going concern, it has been assumed in all
scenarios (except scenario 6 - see below)
that the future funding needs, including the
repayment of external debt when it
becomes due, of the PEEK manufacturing
facility in China are met by the Group, which
the Board considers tobe the worst case
scenario.
The downside scenarios applied to the strategic plan are as follows:
Scenario modelled Link to principal risk
1. General competitive pressure in the marketplace resulting in a decrease of Sustainable Solutions and
Medical revenue for both core and mega-programmes. Annual volume reduction between 5% and 18%
in each year of the strategy.
Geo-political and macro-
economic environment
Strategy execution
2. Mega-programmes not achieving all milestones set or investment/adoption is delayed, for example
byeconomic conditions or regulatory approval, therefore delaying the time to meaningful revenue.
Anaverage of two years’ delay to revenue growth versus the base case.
Geo-political and macro-
economic environment
Strategy execution
3. An extended period of economic contraction (in line with scenario 2 for going concern) resulting in lower
sales in 2026 and 2027 before returning to strategy growth rates thereafter. Annual volume reduction of
c.19% in each year of the strategy.
Geo-political and macro-
economic environment
Strategy execution
4. A natural or other event impairing key manufacturing assets resulting in supply disruption for around
twoyears, with associated reputational damage. Annual volume reduction from FY 2028 of 25% for
twoyears followed by 10%.
Supply chain
5. Increase to direct cost base potentially arising from:
a. additional regulatory compliance, environmental or otherwise;
b. increase in duty and tariffs;
c. product liability issues;
d. increased cost of operating lower carbon manufacturing assets;
e.
the transitional risks of moving to a lower carbon economy – increases in tax/levies on utility or waste usage; or
f. increase in raw material and/or other input prices.
Operating costs increased by 5–15% per annum across the strategy period from FY 2027 onwards.
Legal and regulatory
compliance, ethics
andcontracts
Safety, Health and
Environment
Product liability
6. All of the above*, with an associated reduction in the overhead cost base and capital expenditure. Annual
volume reduction between 5% and 30% in each year of the strategy (averaging 21% over the five years).
* Where two or more scenarios impact the same revenue stream in the same period the lower outcome is taken.
The key mitigating actions available to the
Directors are consistent with those outlined
above in going concern, incorporating the
Group’s ability to manage its cost base, reduce
working capital and raise new finance and
the possibility of delaying capital programmes
and/or restricting shareholder returns, all
ofwhich could be applied over the longer
viability period. In addition to these specific
mitigation plans, the Group’s two distinct
segments, both with diverse geographic
markets, assist in reducing the risk of
regional economic challenges and sector
specific issues. Further, the strategy of
partnering closely with customers to
develop the right applications and our
existing and growing list of specified
products are also important mitigants.
The results of this stress testing showed that
the Group would be able to remain solvent
and maintain liquidity over the assessment
period. The Group is profitable under all
scenarios, including scenario 6. The lowest
cash balance was in scenario 6, in which the
cash balance remains positive albeit at a
level where continued use of the debt
facilities in China and partial use of the RCF
is required through the five-year period. The
China facility has recently been refinanced
through to June 2029, subject to a
reassessment of the draw down criteria in
November 2026. The Directors anticipate
that the criteria will be met and that the
facility could be further extended, based on
the forecast sales growth and cash
generation, if required through to the end
of the 5 year horizon, but recognise this is
not committed.
The RCF isavailable until October 2028 and
the Directors anticipate refinancing would
takeplace before this date. Whilst there
isno guarantee this will be successful, the
Directors anticipate, based on the ongoing
profitability of the business, tobe able to
successfully refinance through tothe end of
the five-year horizon. Covenant compliance
has been successfully tested under scenario 6
throughout the period to October 2028.
Inthe event refinancing of the China facility
and the RCF is unsuccessful, the Directors
have other mitigating options available to
increase headroom which are outlined in the
going concern disclosure on pages 35
and36. Due to the severity and implausibility
of scenario 6, an outcome that requires use
of the aforementioned facilities, this is
considered akin to a reverse stress test.
4. Viability statement
Based on the results of this detailed analysis
the Directors have a reasonable expectation,
that the Group will be able to continue in
operation and meet its liabilities as they fall due
over the five-year period to September 2030.
This is predicated on the assumption that
anunforeseen event outside of the Group’s
control (for example, an event of nature or
terror) does not inhibit the Company’s ability
to manufacture for a sustained period.
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
37Annual Report 2025 – Victrex plc
ENABLING
ENVIRONMENTAL
& SOCIETAL BENEFITS
CONTENTS
39 Decarbonisation: our roadmap
40 Sustainability: embedded in our
purpose
41 Our achievements and accreditations
inFY 2025
42 Task Force on Climate-related
FinancialDisclosures (‘TCFD’)
50 Our sustainability vision and goals
52 People (social responsibility)
55 Planet (resource efficiency)
63 Safety, health and environment
64 Products (sustainable solutions)
65 Our Code of Conduct & Ethics
– doingthe right thing
66 Non-financial and sustainability
information statement
SUSTAINABILITY REPORT
Sustainability is embedded in our purpose: bringing transformational
and sustainable solutions that address world material challenges
every day.
Our Sustainability programme is driven through our People, Planet
&Products pillars. We support our employees, nature and local
communities where we operate; we focus on minimising our use of
resources; and we demonstrate to our customers how our products
are enabling environmental and societal benefits (for example
supporting CO
2
reduction in Aerospace and Automotive, or clinical
benefits in the Medical device industry).
PEOPLE
SOCIAL
RESPONSIBILITY
PLANET
RESOURCE
EFFICIENCY
PRODUCTS
SUSTAINABLE
SOLUTIONS
See pages52–54 See pages55–62 See page 64
STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
38 Victrex plc – Annual Report 2025 39Annual Report 2025 – Victrex plc
PROGRESS THIS YEAR
13%
Reduction in Scope 1 & 2
(market‑based) emission
intensitycompared to FY 2024
SBTI INTERIM TARGETS
BY2032
50.4%
reduction in Scope 1 & 2 emissions
30%
reduction in Scope 3 emissions
FUTURE GOALS
Net Zero
2050
Across Scope 1, 2 & 3
DECARBONISATION:
OUR ROADMAP
Victrex is aligned to the Science Based Targets initiative (‘SBTi’). We are
SBTivalidated for Net Zero emissions targets across Scope 1, 2, and 3 by 2050,
withaninterim milestone by 2032, benchmarked against our FY 2022 baseline.
Electrification of our boilers is the route identified, but we retain optionality
fordelivery, based on affordability, as well as being reliant on a decarbonised
electricity grid (in the UK) and available technology.
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050
tCO
2
e
30,000
25,000
20,000
15,000
10,000
5,000
DECARBONISATION OPTIONS (SCOPE 1 & MARKET-BASED SCOPE 2)
& POTENTIAL ROADMAP
Actual Scope 1 tCO
2
e
Projected Scope 1 (growth) tCO
2
e
Actual Scope 2 tCO
2
e
Projected Scope 2 (growth) tCO
2
e
Near-term target 2032
(10 years from base year)
Long-term
target
(2050)
Scope 1 & 2 – SBTi 1.5ºC near term then Net Zero tCO
2
e
Initial projection Scope 1 and 2 (growth)
Potential roadmap (based on
electrification of gas boilers)
Other
improvement
programmes
(UK & China)
Impact of increased UK
and China production
Potential to
defer start‑up of
electric boilers
Electrification
of two boilers
completed
(indicative)
Sustainability report
Pages38 to 67
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38 Victrex plc – Annual Report 2025 39Annual Report 2025 – Victrex plc 39Annual Report 2025 – Victrex plc