A PLASTICS company formed from an ICI management buyout expects to cap rising demand with a near £20m boost from sterling’s prolonged weakness.

Victrex, which runs a plant at Seal Sands, near Billingham, says the currency’s Brexit-induced travails will lift its balance sheet and support growth plans.

Bosses say they believe annual profits will be bolstered by as much as £19m, adding the situation could deliver double-digit income growth in the company’s subsequent financial year.

The upbeat outlook was revealed today (Monday, May 15) in a trading update for the six months to March 31, which showed group sales volumes were five per cent higher than a year ago at 1,859 tonnes.

That rise helped push group revenues up 12 per cent to £130.9m, with gross profit also 12 per cent better off at £82.4m.

The company, spawned from a 1993 buyout, is recognised for its plastics, known as polymers, which are used in aeroplanes to increase fuel economy by making parts lighter, offshore energy seals and piping systems, and spinal, dental and trauma treatment.

Emphasising its profits guidance, David Hummel, chief executive, revealed its successes were helped by established revenue streams counterbalancing issues in an electronics arm.

He said: “Our growth reflects positive momentum across many end markets, particularly automotive and industrial, while energy saw some improvement, although oil and gas remains challenging.

“The inherent volatility in consumer electronics remains a challenge, however, the growth opportunities continue to be attractive.

“The potential currency benefit is unchanged and we anticipate the potential benefit to profits to be approximately £18m-£19m.”