REG - Volex PLC - Half Year Trading Update

VolexAnnouncement

16/10/2024 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241016:nRSP3028Ia&default-theme=true

RNS Number : 3028I  Volex PLC  16 October 2024

 

 

16 October 2024

Volex plc

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

 

Half Year Trading Update

Volex (AIM: VLX), the specialist integrated manufacturer of critical power and
data transmission products, today releases a trading update for the 26 weeks
ended 29 September 2024.

 

Strong momentum sustained through the first half; full year expectations
unchanged

 

The Group's financial performance in the first half of the year was in line
with expectations, with revenues in excess of $510 million. This performance
demonstrates the continued resilience of the Company based on strong
relationships with blue-chip customers across our five end-market sectors.

 

Constant currency organic revenue growth for the first half of the year was
9.7%, including a substantial increase in Electric Vehicle revenues and a
return to revenue growth in Consumer Electricals. As guided at the full year
results, Medical revenues were slightly lower against a strong prior year
comparative which benefitted from a catch up in the post-Covid supply chain.
Complex Industrial Technology delivered good growth with a strong increase in
high speed data-centre products offsetting softer demand from industrial
customers. Off-Highway also experienced good growth across a broad customer
base.

 

Margin resilience supports continued investment in growth

 

The Group expects to deliver operating profit margins for the first half
consistent with the Board's through-cycle target of 9-10%, despite the recent
inflationary cost pressures in Turkey. This strong performance provides the
Group with confidence to continue investing in capacity and capability growth
as outlined at the full year results. In addition, productivity improvement
activities are being accelerated as part of our Murat Ticaret integration
programme, resulting in an offset of localised labour cost pressures.

 

Outlook

 

Volex delivered strong growth in the first half of the year, despite a
challenging macroeconomic background. This is a testament to the Group's
strong positioning in specialist markets delivering critical connectivity for
customers.  The Group is benefitting from a diversification strategy
targeting structural growth markets and leveraging strong customer
relationships, and is well positioned to continue the current momentum through
the second half of the year, with full year expectations unchanged.

 

Half year results

 

The Group expects to release its interim results on 15 November 2024.

 

-ENDS-

 

 

 

 

For further information please contact:

 

Volex plc                                                                                                             +44 1256 442570
Nat Rothschild, Executive Chairman                                                        investor.relations@volex.com

Jon Boaden, Chief Financial Officer

 

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

Ed Allsopp

Dom Convey

Tom Graham

 

HSBC Bank plc - Joint
Broker
                                +44 20 7991 8888

Simon Alexander

Joe Weaving

Stephanie Cornish

Sodali & Co - Media
Enquiries
+44 20 7250 1446

James White

Nicholas Johnson

 
About Volex plc

Volex plc (AIM:VLX) is a driving force in integrated manufacturing for
mission-critical applications and a global leader in power and data
connectivity solutions. Our diverse operations support international blue-chip
customers in five key sectors: Electric Vehicles, Consumer Electricals,
Medical, Complex Industrial Technology and Off-Highway. Headquartered in the
UK, we orchestrate operations across 28 advanced manufacturing facilities,
uniting 14,000 dynamic individuals from 25 different nations. Our
extraordinary products find their way to market through our localised sales
teams and authorised distributor partners, supporting Original Equipment
Manufacturers and Electronic Manufacturing Services companies across the
globe. In a world that grows more digitally complex by the day, customers
trust us to deliver power and connectivity that drives everything from
household essentials to life-saving medical equipment. Learn more at
www.volex.com.

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  TSTFFMFIIELSEIS