REG - Volex PLC - AGM Statement

VolexAnnouncement

27/07/2023 07:15

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RNS Number : 2871H  Volex PLC  27 July 2023

Volex plc

 

("Volex", the "Group" or the "Company")

 

AGM Statement

 

Trading momentum continues in the first quarter

 

Volex plc (AIM: VLX), the specialist integrated manufacturer of critical power
and data transmission products, is pleased to report a trading update for the
three months ended 30 June 2023, ahead of the Company's annual general
meeting, being held at 4:00pm BST today.

 

Trading continues to perform in line with management expectations and the
Company is pleased to report a continuation of the positive trading momentum
experienced in the prior year, with year-on-year constant currency organic
growth of 6.5% recorded in the first quarter of the 2024 financial year.

 

Volex is a robust and highly diversified business. Investment in vertical
integration, continuous improvement initiatives and a favourable mix across a
highly diversified product portfolio is resulting in sustained margins despite
a challenging macro-economic backdrop.

 

Overall customer demand is healthy. Improved supply chain conditions are
accelerating order delivery turnaround, with improvements in lead times across
manufacturing resulting in the normalisation of inventory levels for some
customers.

 

The Group's strong positioning and competitive proposition is delivering a
number of new customer project wins, validating management's focus on
attractive markets with strong structural growth characteristics. This
includes increasing demand for Volex's next generation of high-speed cables
for data centres due to the growing market for artificial intelligence
applications, as well as a range of solutions for the growing EV market.

 

Competition clearance is in process for the recently announced acquisition of
Murat Ticaret. Integration planning is well advanced and the acquisition is
expected to complete in two to three months' time, presenting the Group with
an exciting additional growth opportunity to the organic growth potential that
exists across the wider business.

 

Overall, trading for the first quarter is in line with the Board's
expectations, and coupled with the encouraging trends in the first quarter,
gives the Board confidence that the business will continue to make further
progress in the year.

 

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

 

 Peel Hunt LLP - Nominated Adviser & Joint Broker      +44 (0)20 7418 8900

 Ed Allsopp

 Tom Ballard

 Ben Harrington

 

 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

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
8,000 people 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 (http://www.volex.com)

 

-ENDS-

 

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