UPDATE 2-Sales recovery short-lived at UK plastics firm

* H1 sales volumes 774 tonnes vs 1,293 tonnes

* March sales drop indicates more destocking

* Invibio division performing well

* Shares down more than 9 percent

(Recasts, adds company quotes, shares, analyst)

By Victoria Bryan

LONDON, April 7 (Reuters) - British high-tech plastics company Victrex Plc (VCTX.L) said sales volumes fell in February and March after a month-on-month rise in January, sending its shares down more than 9 percent on Tuesday. Victrex, whose key PEEK polymer product is used in aircraft components, car parts and surgical instruments, said first-half volumes to end-March fell 40 percent to 774 tonnes.

March sales dropped to 90 tonnes, from 109 in February and below the 115 tonnes reported for the quiet month of December, which Victrex said indicated renewed destocking by its clients, particularly in the automotive and electronics industries.

"While it is still too early to make predictions about second half sales volume, current month order levels are running at a higher level than at the same time in March," Victrex said.

By 0900 GMT, its shares, which have gained 12 percent since the start of the year, were down 9.5 percent at 484 pence, making it one of the biggest mid-cap fallers in London .FTMC.

The first-half trading statement prompted Cazenove and Brewin Dolphin to cut forecasts for the full year to end-September 2009.

Brewin Dolphin analyst James Tetley said he now forecast pretax profit of less than 20 million pounds ($29.84 million) for the year, from estimates of 30 million previously, and cut the year sales volumes projection to 1,400 tonnes, from 1,700.

Cazenove, which was forecasting volumes of 1,647 tonnes for the year before the statement and now expects 1,410, trimmed its earnings per share forecast for 2009 by 23 percent.

Tetley said the share price fall was not that bad considering the size of downgrades by brokers.

"I think people are taking comfort from its strong balance sheet, cash flow and the fact that it will grow extremely quickly when the recovery does come," Tetley said.

Lancashire-based Victrex said its biomaterials business, Invibio, was performing well, with first-half revenue up 50 percent to 17.6 million pounds.

It also said it will reduce polymer production and suspend BDF monomer production for up to six months.

"While the Victrex Polymer Solutions division is affected by the global slowdown in our major markets, we remain focused on developing the underlying growth potential which will be realised when the trading environment improves." (Reporting by Victoria Bryan; Editing by Andrew Macdonald) ($1=.6702 Pound)