Interim Results

Victrex PLC
12 June 2001

                                                                12th June 2001


                                 Victrex plc

        Results announcement for the six months ended 31st March 2001


       -  Volume up 43% to 900 tonnes (2000: 628 tonnes)      

       -  EBITDA up 46% to £14.2m (2000: £9.7m)

       -  Profit before tax up 54% to £12.0m (2000: £7.8m)

       -  Earnings per share up 47% to 11.0p (2000: 7.5p)

       -  Interim dividend up 11% to 2.0p (2000: 1.8p)


Chairman Peter Warry commented:


'Victrex has continued to show strong sales growth in all major market
segments and trading areas.  This has resulted in a 54% improvement in profit
before tax compared to the first half of last year.

Following our first half sales performance, demand has remained strong with
the exception of some softening in the USA, principally in the teletronics
market segment.  Second half sales volume will be restricted while we resolve
the current supply constraint but is expected to exceed the level achieved for
the same period last year.

Our success this year reinforces our confidence in the Group's future growth
potential.'


Enquiries


Victrex plc
David Hummel, Chief Executive             0207 357 9477 (12th June 2001)
Michael Peacock, Finance Director         01253 897700 (thereafter)


Hogarth Partnership Limited
Nick Denton / John Olsen                  0207 357 9477



CHAIRMAN'S STATEMENT
on the interim results of Victrex plc for the six months ended 31 March 2001

Victrex has continued to show strong sales growth in all major market segments
and trading areas.  This has resulted in a 54% improvement in profit before
tax compared to the first half of last year.


Results

Turnover was 40% ahead of the first half of last year at £39.7m (2000: £
28.3m).  Sales volume, at 900 tonnes, increased by 43% over the same period
last year and by 30% over the record sales volume of 693 tonnes achieved in
the second half of last year.

This growth was achieved across all of our major market segments.  Compared to
the first half of last year, the strongest growth was achieved in the
industrial segment where sales volume was 284 tonnes, an increase of 59%.
Transport grew by 31% to 275 tonnes and teletronics increased by 45% to 236
tonnes.

European volume (414 tonnes) saw continued growth, with a 34% increase over
the same period last year spread across all segments.  As well as further
growth in automotive, our largest European business segment, we experienced a
significant increase in industrial business.

United States volume (389 tonnes) saw exceptional growth of 61% over the first
half of last year.  The fastest growing segments were industrial and
teletronics.  We also saw good growth in transport due to an improved
automotive performance and further recovery in aerospace demand.

Asia-Pacific volume (97 tonnes) built on the step change in business activity
for 2000 with 27% growth over the same period last year.  This improvement was
largely due to increased teletronics demand but also an increasingly
significant contribution from industrial applications.

Gross profit was £18.9m (2000: £13.0m), representing 48% of sales revenue
(2000: 46%).  Sales, marketing and administrative expenses increased to £6.6m
(2000: £4.6m) due to further investment in technology and marketing together
with increased staff bonuses (reflecting the continued strong business
performance).

Net interest expense decreased to £0.4m (2000: £0.7m) as a result of continued
strong cash flow.

Profit before tax was £12.0m (2000: £7.8m) up 54% and earnings per share were
11.0p (2000: 7.5p) up 47%. The effective tax rate was 28% (2000: 24%).


Dividend

An interim dividend of 2.0p per share, representing an increase of 11% over
last year's interim dividend, will be paid on 27 July 2001 to all shareholders
on the register at the close of business on 22 June 2001.


Cash flow

Cash flow from operating activities increased to £15.4m (2000: £10.4m)
primarily as a result of improved trading.  Net debt at 31 March 2001 stood at
£2.4m (2000: £24.4m), which represents a further significant reduction from
the position at last year end (£11.1m).  As a result our unutilised bank
facilities increased to £37.0m.


Manufacturing Capacity

In our last Annual Report we stated that PEEKTM  plant capacity was 2,000
tonnes per annum whilst the BDF supply chain required some minor capital
projects and processing improvements to support this.  In March we announced
that these expansion plans had been accelerated to address a temporary supply
constraint caused by the rapid sales growth rate achieved in the first half of
this year.  We are confident that these measures will resolve the constraint
within the next few months.

We are now further uprating the entire supply chain to enable production to
support 2,300 tonnes per annum of PEEKTM sales by the end of the current
financial year. Subsequently we intend to implement a further progressive
uprate to achieve a capacity of 2,800 tonnes per annum by October 2003.  We
estimate that the total cost to Victrex of these uprates will be around £20m
of which £2.5m will be spent in the current financial year.  We expect to fund
the additional investment from internal resources.


Business Development

During the period we continued to focus on driving new applications through
our development pipeline and commercialised 104 new applications. The pipeline
currently contains developments with an estimated mature annualised volume of
1,870 tonnes (September 2000: 1,840 tonnes), assuming all of the developments
are commercialised.

Building our business for the future is the essence of our strategy, so I am
particularly pleased with the formation of the Victrex/Ballard Ionomer
Alliance to develop and manufacture ionomers for use in membranes for Ballard
(R) fuel cells.  This exciting alliance greatly enhances the prospects for the
membrane materials that we have developed and leverages Victrex's skill in
manufacturing with Ballard's fuel cell expertise.  We look forward to a
mutually beneficial long-term relationship.

We are also making further progress in our medical implant material business
based on our biocompatible product, PEEK-OPTIMA(R), and are continuing to
build our portfolio of long term agreements with device manufacturers.


Board Changes

Richard Heley, our senior non-executive Director, is retiring from the Board
today. Richard joined the Board prior to the flotation of Victrex six years
ago and has played an important role in the Group's development.  We are most
grateful for his contribution and wish him well in the future.


Outlook

Following our first half sales performance, demand has remained strong with
the exception of some softening in the USA, principally in the teletronics
market segment.  Second half sales volume will be restricted while we resolve
the current supply constraint but is expected to exceed the level achieved for
the same period last year.

Our success this year reinforces our confidence in the Group's future growth
potential.


Peter Warry
Chairman

11 June 2001



CONSOLIDATED PROFIT AND LOSS ACCOUNT


                                            Unaudited     Unaudited     
                                             six months  six months     Audited
                                                  ended       ended  year ended
                                               31 March    31 March 30 September
                                                   2001        2000        2000

                                                  £'000       £'000       £'000
Turnover: Group and share of Japanese            43,328      30,602      63,238
joint venture

Less: share of Japanese joint venture           (3,661)     (2,332)     (4,502)
Turnover                                2        39,667      28,270      58,736

Cost of sales                                  (20,790)    (15,294)    (31,072)
Gross profit                                     18,877      12,976      27,664

Sales, marketing and administrative             (6,609)     (4,618)    (10,424)
expenses
Group operating profit                           12,268       8,358      17,240

Share of operating profit in Japanese               173         129         125
joint venture

Total operating profit                           12,441       8,487      17,365

Interest receivable                                  88          86         159
Interest payable                                  (511)       (748)     (1,606)
Profit on ordinary activities before             12,018       7,825      15,918
taxation

Tax on profit on ordinary activities    8       (3,365)     (1,917)     (3,900)
Profit on ordinary activities after               8,653       5,908      12,018
taxation

Equity dividends paid and proposed              (1,585)     (1,403)     (4,778)

Retained profit for the period                    7,068       4,505       7,240

Earnings per ordinary share - Basic     3         11.0p        7.5p       15.3p

                            - Diluted   3         10.9p        7.5p       15.2p




The Group's turnover and operating profit arise from continuing operations in
both the current and preceding periods.

There were no material differences between reported profits and historical
cost profits on ordinary activities before taxation in any of the above
periods.



CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES


                                       Unaudited      Unaudited     
                                      six months     six months         Audited
                                           ended          ended      year ended
                                        31 March       31 March    30 September
                                            2001           2000            2000
                                           £'000          £'000           £'000

Profit for the period                      8,653          5,908          12,018

Exchange gain/(loss) on                       40          (170)           (145)
consolidation
Total recognised gains for the             8,693          5,738          11,873
period



CONSOLIDATED BALANCE SHEET


                                                  Unaudited Unaudited   Audited
                                                      as at     as at     as at
                                                   31 March  31 March        30
                                                       2001      2000 September
                                                                           2000
                                                      £'000     £'000     £'000
Fixed assets

Intangible assets                                    11,129    12,401    11,765
Tangible assets                                      30,658    30,791    30,652
Investments                                             749       140       140
Investment in Japanese joint venture:     
                   Share of gross assets              2,098     1,924     1,624
                   Share of gross liabilities       (2,212)   (2,225)   (1,939)

                                                     42,422    43,031    42,242
Current assets

Stock                                                 6,074    14,001    10,839
Debtors: amounts falling due within one year          9,654    10,113     7,141
Cash at bank and in hand                                578         -     1,376
                                                     16,306    24,114    19,356
Creditors: amounts falling due within one year     (12,325)  (11,943)  (14,021)
Net current assets                                    3,981    12,171     5,335

Total assets less current liabilities                46,403    55,202    47,577

Creditors: amounts falling due after more than      (2,853)  (22,814)  (12,333)
one year

Net assets                                           43,550    32,388    35,244


Share capital and reserves

Called up share capital                                 794       785       786
Share premium account                                11,433    10,148    10,243
Profit and loss account                              31,323    21,455    24,215
Equity shareholders' funds                           43,550    32,388    35,244




RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS


                                             Unaudited   Unaudited      Audited
                                            six months  six months   year ended
                                                 ended       ended
                                              31 March    31 March 30 September 
                                                  2001        2000         2000
                                                 £'000       £'000        £'000

Profit for the period                            8,653       5,908       12,018

Dividends                                      (1,585)     (1,403)      (4,778)
Retained profit for the period                   7,068       4,505        7,240

Exchange adjustment                                 40       (170)        (145)
Issue of ordinary shares exercised under             8           -            1
option
Premium on issue of ordinary shares              1,190           1           96
exercised under option
Share issue costs                                    -         (8)          (8)
Net addition to shareholders' funds              8,306       4,328        7,184

Opening shareholders' funds                     35,244      28,060       28,060
Closing shareholders' funds                     43,550      32,388       35,244



CONSOLIDATED CASH FLOW STATEMENT

                                              Unaudited  Unaudited     Audited
                                             six months six months  year ended
                                                  ended      ended          30
                                               31 March   31 March   September
                                                   2001       2000        2000
                                                  £'000      £'000       £'000

Net cash inflow from operating         4         15,428     10,443      28,875
activities

Returns on investment and servicing of
finance

Interest received                                    91         86         159

Interest paid                                     (855)      (746)     (1,180)
Finance costs                                         -          -       (197)
Net cash outflow from investments and             (764)      (660)     (1,218)
servicing of finance

Taxation- taxation paid                         (1,882)      (715)     (3,167)

Net cash outflow from capital                   (1,292)    (1,382)     (2,178)
expenditure

Acquisitions

Purchase of business                   5              -   (19,900)    (19,900)

Associated acquisition costs                          -    (1,119)     (1,119)
Net cash outflow from acquisitions                    -   (21,019)    (21,019)

Equity dividends paid                           (3,378)    (3,012)     (4,422)

Cash inflow/(outflow) before financing            8,112   (16,345)     (3,129)

Financing

Issue of ordinary share capital                       8          -           1

Premium on issue of ordinary shares               1,190          1          96
under option

Share purchase                                    (608)          -           -

Debt due after more than one year:              (9,500)     15,414       5,100
(decrease)/increase in
long term borrowing

Net cash (outflow)/inflow from                  (8,910)     15,415       5,197
financing

(Decrease)/increase in cash              6        (798)      (930)       2,068




NOTES TO THE INTERIM REPORT


1  BASIS OF PREPARATION

The interim results have been prepared on the basis of the accounting policies
set out in the Group's last Annual Report and Accounts.

The financial information for the year ended 30 September 2000 has been
extracted from the statutory accounts, which have been filed with the
Registrar of Companies.  The auditors' report on these accounts was
unqualified.

The Interim Report for the six months ended 31 March 2001 was approved by the
Board on 11 June 2001.



2  ANALYSIS OF TURNOVER

All turnover and profit before taxation are derived from the Group's principal
activity, being the manufacture and sale of high performance materials.

An analysis of turnover by origin and customer location is as follows:


                           Six months ended Six months ended         Year ended
                              31 March 2001    31 March 2000  30 September 2000

                                      £'000            £'000              £'000
Europe                               16,718           13,067             26,722

United States of America             17,959           11,496             24,977
Asia-Pacific                          4,990            3,707              7,037
                                     39,667           28,270             58,736



3  EARNINGS PER SHARE


                                      Six months     Six months      Year ended
                                           ended          ended    30 September
                                   31 March 2001  31 March 2000            2000

Earnings per ordinary   - Basic            11.0p           7.5p           15.3p
share
                        - Diluted          10.9p           7.5p           15.2p


Earnings per ordinary share is based on the Group's profit for the financial
period of £8,653,000 (2000: £5,908,000)
The weighted average number of shares used in the 
calculations are:           - basic 78,889,095 (2000: 78,530,731)
                            - diluted 79,682,903 (2000: 78,660,395)



4  RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATING
ACTIVITIES


                                                       Six       Six       Year
                                                    months    months      ended
                                                     ended     ended         30
                                                  31 March  31 March  September
                                                      2001      2000       2000

                                                     £'000     £'000      £'000
Total operating profit                              12,441     8,487     17,365

Depreciation and amortisation charge                 1,768     1,183      2,908
Earnings before interest, taxation, depreciation    14,209     9,670     20,273
and amortisation
Decrease in stocks                                   4,765     2,224      5,386
Increase in debtors                                (2,513)   (3,413)      (441)
(Decrease)/increase in creditors                     (790)     2,235      3,912
Japanese joint venture profit in stock               (109)        35         23
elimination
Share of operating profit in Japanese joint          (173)     (129)      (125)
venture
Effect of foreign exchange rate changes                 39     (179)      (153)
Net cash inflow from operating activities           15,428    10,443     28,875



NOTES TO THE INTERIM REPORT  CONTINUED


5  PURCHASE OF BUSINESS

On 23 December 1999 the DFDPM manufacturing business of Laporte plc was
acquired.


Net assets acquired                                                       £'000

Tangible fixed assets                                                     6,000

Intangible fixed assets                                                  11,600

Stock                                                                     2,300

Consideration                                                            19,900

This acquisition was funded by additional borrowings.




6  RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT


                                           Six months   Six months   Year ended
                                                ended        ended
                                             31 March     31 March 30 September 
                                                 2001         2000         2000
                                                £'000        £'000        £'000

(Decrease)/increase in cash in the              (798)        (930)        2,068
period

Cash outflow/(inflow) from decrease/            9,500     (15,414)      (5,100)
(increase) in debt
Movement in net debt in the period              8,702     (16,344)      (3,032)

Net debt at beginning of the period          (11,124)      (8,092)      (8,092)
Net debt at end of the period                 (2,422)     (24,436)     (11,124)




7  EXCHANGE RATES

The most significant sterling exchange rates used in the accounts under the
Group's accounting policies are:

                         Average exchange rate           Closing exchange rate
                Six months      Six months  Year ended  As at As at      As at
            ended 31 March  ended 31 March          30     31    31         30
                      2001            2000   September  March March  September
                                                  2000   2001  2000       2000
                                                         
US Dollar             1.55            1.64        1.61   1.53  1.60       1.63

Deutschemark          3.13            2.88        2.95   3.12  2.93       3.07

Yen                    161             176         171    154   165        156




8  TAXATION

Tax on profit on ordinary activities in respect of the half year ended 31
March 2001 has been provided at the estimated effective rates chargeable for
the full year in the respective jurisdictions.

The charge for the period includes £448,000 (2000: £480,000) in respect of
overseas taxation.


REVIEW REPORT BY THE AUDITORS


INTRODUCTION

We have been instructed by the Company to review the financial information set
out on pages 4 to 8 and we have read the other information contained in the
Interim Report and considered whether it contains any apparent misstatements
or material inconsistencies with the financial information.

DIRECTORS' RESPONSIBILITIES

The Interim Report, including the financial information contained therein, is
the responsibility of, and has been approved by, the Directors.  The Listing
Rules of the Financial Services Authority require that the accounting policies
and presentation applied to the interim figures should be consistent with
those applied in preparing the preceding annual accounts except where they are
to be changed in the next annual accounts in which case any changes, and the
reasons for them, are to be disclosed.

REVIEW WORK PERFORMED

We conducted our review in accordance with the guidance contained in Bulletin
1999/4: Review of Interim Financial Information issued by the Auditing
Practices Board.  A review consists principally of making enquiries of Group
management and applying analytical procedures to the financial information and
underlying financial data and, based thereon, assessing whether the accounting
policies and presentation have been consistently applied unless otherwise
disclosed.  A review is substantially less in scope than an audit performed in
accordance with Auditing Standards and therefore provides a lower level of
assurance than an audit.  Accordingly we do not express an audit opinion on
the financial information.

REVIEW CONCLUSION

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 March 2001.


KPMG Audit Plc

Chartered Accountants

Manchester

11 June 2001



SHAREHOLDER INFORMATION

Copies of this Interim Report will be sent to all shareholders and will be
available from the Registered Office detailed below.


FINANCIAL CALENDAR

Ex-dividend date for interim dividend                              20 June 2001

Record date for interim dividend                                   22 June 2001

Payment of interim dividend                                        27 July 2001

2001 year end                                                 30 September 2001

Announcement of 2001 full year results                            December 2001

Annual General Meeting                                             January 2002

Payment of final dividend                                         February 2002



Company Secretary and Registered Office

M W Peacock

Victrex plc, Victrex Technology Centre, Hillhouse International, Thornton
Cleveleys, Lancashire FY5 4QD