REG - Volex PLC - AGM Statement

VolexAnnouncement

19/08/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220819:nRSS5395Wa&default-theme=true

RNS Number : 5395W  Volex PLC  19 August 2022

Volex plc

("Volex" or the "Company")

AGM Statement

Strong start to FY2023 and continued progress across the business

Volex plc (AIM: VLX), the global manufacturer supplying power products and
integrated manufacturing services, today issues a trading update for the three
months ended 30 June 2022 ahead of the Company's Annual General Meeting, being
held today at 4:00pm BST.

 

Continued momentum

Volex's performance in the first quarter has been strong, in line with
management's expectations and the new, five-year growth plan.

 

Revenues grew organically by 4.9% reflecting positive customer demand and our
ability to deliver against the backdrop of a challenging supply chain
environment.

 

As outlined at the Company's full year results in June 2022, we have continued
to maintain high levels of utilisation across each region, with higher
inventory levels than the previous year in order to support the timely
delivery of complex products to customers.

 

Integration of the acquisitions made during FY2022 is progressing well and
Volex continues to develop a strong acquisition pipeline.

 

Supportive end market conditions

The Company's diverse end markets continue to support Volex's long-term
strategic plans and affords the Group a high degree of resilience:

 

·    Electric Vehicles: Continued revenue growth resulting from the
investment we have made to enhance our capabilities and enable us to support a
range of products for our EV customers.

 

·  Consumer Electricals: Revenues continue to grow, reflecting increasing
market share through selling activity, as well as the delivery of new customer
projects.

 

·    Medical: Demand from Medical customers remains robust and revenues
are ahead of the previous year, despite challenges due to the limited
availability of components.

 

·    Complex Industrial Technology: Demand in our core business remains
strong, next-generation high speed cable volumes are expected to increase in
future periods as customers accelerate their technology replacement
programmes.

 

Outlook

Management continues to focus on diversification, vertical integration and
realising cross-selling opportunities across the business in order to deliver
sustainable revenue growth.

 

Overall, whilst still early in the year, the encouraging trends in the first
quarter mean the Board expects to deliver full year underlying operating
profit in line with current market expectations(1).

 

(1) Latest company compiled view of market expectations shows an underlying
operating profit consensus of $62.8 million with a range of $62.3 million to
$64.0 million.

 

 

For further information please contact:

 Volex plc                             +44 (0)7971 156 431

 Nat Rothschild, Executive Chairman    investor.relations@volex.com (mailto:investor.relations@volex.com)

 Jon Boaden, Chief Financial Officer

 

 Singer Capital Markets - Nominated Adviser & Joint Broker      +44 (0)20 7496 3000

 Shaun Dobson

 George Tzimas

 

 HSBC Bank plc - Joint Broker  +44 (0)20 7991 8888

 Simon Alexander

 Joe Weaving

 

 Powerscourt - Media Enquiries  +44 (0)20 7250 1446

 James White

 Nicholas Johnson

 Maxim Hibbs

 

About Volex

 

Volex plc (AIM: VLX) is a global leader in integrated manufacturing for
performance-critical applications and a supplier of power products. We serve a
diverse range of markets and customers, with particular expertise in cable
assemblies, higher-level assemblies, data centre power and connectivity,
electric vehicles, and consumer electricals. We are headquartered in the UK
and operate from 19 manufacturing locations with a global workforce of over
7,800 employees across 22 countries. Our products are sold through our own
locally based sales teams and through authorised distributor partners to
Original Equipment Manufacturers ('OEMs') and Electronic Manufacturing
Services ('EMS') companies worldwide. All of the products and services that we
offer are integral to the increasingly complex digital world in which we live,
providing power and connectivity from the most common household items to the
most complex medical equipment. For more information, please visit
www.volex.com

 

-ENDS-

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  AGMSFLFUAEESEIA