REG - Volex PLC - Preliminary Group Results FY2025
Thu 07:00
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RNS Number : 4540O Volex PLC 26 June 2025
26 June 2025
Volex plc
("Volex", the "Company", or the "Group")
Preliminary Group Results
for the 52 weeks ended 30 March 2025
Strong revenue and profit growth, margins maintained and well-set for further
progress
Volex plc (AIM: VLX), the specialist integrated manufacturer of critical power
and data transmission products, announces its preliminary results for the 52
weeks ended 30 March 2025 ("FY2025").
Financial Highlights 52 weeks to 52 weeks to Year on year change
30 March 31 March 2024
2025
Revenue $1,086.5m $912.8m 19.0%
Underlying(1) operating profit $106.2m $89.7m 18.4%
Statutory operating profit $82.9m $63.9m 29.7%
Underlying(1) profit before tax $87.6m $77.4m 13.2%
Statutory profit before tax $64.3m $51.6m 24.6%
Underlying(1) basic earnings per share 36.3c 33.7c 7.7%
Statutory basic earnings per share 25.9c 21.8c 18.8%
Final dividend (per share) 3.0p 2.8p 7.1%
Net debt(2) $174.8m $154.0m
Net debt (before operating lease liabilities)(3) $127.4m $121.1m
(1) Before adjusting items and share-based payments charge (see note 3 for
more details)
(2) Represents cash and cash equivalents, less bank loans, debt issue costs
and lease liabilities
(3) Represents net debt including finance leases, but excluding pre-IFRS16
operating lease liabilities (see note 15 for more details)
Financial and strategic highlights
· Group revenue increased by 19.0% to $1,086.5m (FY2024: $912.8m), with
organic growth of 11.1%, driven by particularly strong performance in Electric
Vehicles and Consumer Electricals
· Underlying operating profit rose by 18.4% to $106.2 million (FY2024:
$89.7 million), supported by volume growth and the full-year benefit of the
Murat Ticaret acquisition
· Cash conversion remained robust at 67.2% (FY2024: 89.6%), helping to
generate underlying free cash flow of $42.2 million (FY2024: $56.8 million).
FY2024 included a working capital inflow as inventory normalised due to
improved supply chain conditions
· Underlying operating margin sustained at 9.8% (FY2024: 9.8%), at the
upper end of our target range of 9-10% reflecting our pricing power and
ongoing focus on operational efficiency
· Proposed final dividend of 3.0 pence per share, bringing the full
year dividend to 4.5 pence, an increase of 7.1%
· Year-end net debt covenant leverage was maintained at 1.0x, providing
significant financial flexibility
· Continued strategic investments in global manufacturing capability,
including new capacity in Mexico, Indonesia, India and Türkiye
· Ongoing integration in Türkiye, focused on cost base optimisation
and productivity enhancements to counteract inflationary pressure on labour
costs
Market highlights
· Electric Vehicles delivered significant growth with revenue up 40.2%
organically to $172.9 million, supported by new programme wins with new and
existing customers
· Consumer Electricals saw organic revenue growth of 9.6% to $257.0
million, reflecting the strong market positioning and competitiveness in this
area
· Medical revenue declined 4.9% organically, following a strong
comparative year due to supply chain recovery, though long term growth
prospects remain solid
· Complex Industrial Technology grew 14.5% organically, bolstered by
significant Data Centre demand and wins in HVAC and automation
· Off-Highway revenue increased 3.6% organically, with growth in
European transport and new business offsetting softness in agriculture and
construction
· Regional performance was led by North America (+35.2%), driven by EV
and data centre demand; Europe (+16.1%) included the full-year effect of the
Murat Ticaret acquisition; Asia declined by 7.9%, reflecting regional data
centre customer mix
Outlook
· Volex expects to make further progress against its strategic
ambitions in the year ahead, underpinned by a diverse market presence,
structural sector tailwinds, a robust pipeline of project opportunities and an
ongoing focus on operational efficiency
· The Group currently expects limited direct impact from the evolving
tariff situation, given its global footprint, manufacturing flexibility and
strong customer lock-in
· The Board remains confident in delivering long term shareholder
value, supported by strong financial foundations, customer demand and
operational excellence
· Trading in FY2026 to date is very good, creating a strong start to
the year and maintaining the momentum seen during FY2025
· The Group enters FY2026 with attractive growth opportunities ahead
and remains well positioned to meet its five-year plan targets
Nat Rothschild, Volex's Executive Chairman said:
"FY2025 was an outstanding year for Volex, marked by strong growth, sustained
margin performance and successful strategic execution. We have delivered this
growth while maintaining operating margins at the upper end of our target
range, in the face of inflationary pressure, demonstrating pricing power due
to the criticality of our output for customers.
"We have invested significantly in incremental capacity in key locations as
well as further investment in our automation and digital transformation
agenda. The strategic acquisition of Murat Ticaret has significantly enhanced
our scale and capabilities in relation to specialist automotive applications
and integration is progressing, with encouraging opportunities in the
off-highway space.
"Tariffs and global trade dynamics remain front of mind for our customers. We
view these challenges as opportunities and, as a result of our extensive
international footprint, deep customer relationships and track record in
complex programme relocations, we have a clear strategic advantage when it
comes to helping our customers as they rethink and restructure their supply
chains.
"We remain firmly on track to deliver our five-year strategic plan,
underpinned by a healthy pipeline of organic initiatives and an active
acquisition pipeline that is closely aligned with our strategic priorities and
financial returns criteria. As we enter FY2026, the business is in excellent
shape and we are confident in our ability to maintain momentum, build on our
success and continue delivering strong returns for all stakeholders."
Analyst Briefing
A live presentation for analysts will be held via conference call at 9.00 a.m.
BST today. If you are an analyst and would like to join for this briefing,
please contact Volex@sodali.com (mailto:Volex@sodali.com) .
Investor Presentation
A live presentation will be held online at 2.30 p.m. BST on Friday 27 June
2025 on the Investor Meet Company ("IMC") platform.
The presentation is open to all existing and potential shareholders. Questions
can be submitted pre-event on the IMC dashboard up until 9.00 am BST on the
day before the meeting, or at any time during the live presentation.
Investors can sign up to IMC and register to meet Volex via:
https://www.investormeetcompany.com/volex-plc/register-investor
Investors who already follow Volex on the IMC platform will automatically be
invited.
For further information please contact:
Volex plc +44 (0) 1256 442570
Nat Rothschild, Executive
Chairman
investor.relations@volex.com
Jon Boaden, Chief Financial Officer
Peel Hunt LLP - Nominated Adviser & Joint Broker
+44 (0) 20 7418 8900
Ed Allsopp
Dom Convey
Tom Graham
Jefferies - Joint
Broker
+44 (0) 20 7029 8000
Philip Noblet
Sam Barnett
Harry Le May
Sodali & Co. - Media
Enquiries
+44 (0) 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 end-markets: Electric Vehicles, Consumer Electricals,
Medical, Complex Industrial Technology and Off-Highway. Headquartered in the
UK, we orchestrate operations across 27 advanced manufacturing facilities,
uniting 13,000 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.
Definitions
The Group presents some significant items separately to provide clarity on the
underlying performance of the business. This includes significant one-off
costs such as acquisition related costs, the non-cash amortisation of
intangible assets acquired as part of business combinations, and share-based
payments. Further detail on adjusting items is provided in note 3.
Underlying operating profit is operating profit before adjusting items and
share-based payment expense.
Underlying free cash flow is the net cash before financing activities and
excluding costs of acquisitions, the interest element of lease payments,
adjusting items and share-based payments.
Cash conversion is defined as cash generated from operations before adjusting
operating items, less net capital expenditure, as a percentage of underlying
operating profit.
Net debt (before operating lease liabilities) represents cash and cash
equivalents, less bank loans, debt issue costs and finance leases, but
excluding operating lease liabilities. Total lease liabilities include $47.4
million of operating lease liabilities (FY2024: $32.9 million).
Covenant leverage is net debt (before operating lease liabilities) divided by
underlying EBITDA adjusted for depreciation of right-of-use assets and
pro-rated for acquisitions.
Organic revenue growth is calculated using constant exchange rates by taking
the total reported revenue (excluding the impact of acquisitions and
divestments) divided by the preceding financial year's revenue at the current
year's exchange rates.
Return on capital employed is calculated as the last twelve months underlying
operating profit as a percentage of average net assets excluding net cash /
debt.
Forward looking statements
This announcement contains certain forward-looking statements which have been
made by the Directors in good faith using information available up until the
date they approved the announcement. Forward-looking statements should be
regarded with caution as, by their nature, such statements involve risk and
uncertainties relating to events and circumstances that may occur in the
future. Actual results may differ from those expressed in such statements,
depending on the outcome of these uncertain future events.
Scrip Dividend Scheme
Subject to approval by shareholders at the upcoming AGM on 7 August 2025, the
proposed final dividend of 3.0p per ordinary share will be paid on 5 September
2025 to shareholders on the register on 1 August 2025. The ex-dividend date
will be 31 July 2025. Shareholders may elect to receive the final dividend as
shares in the Company, in lieu of cash, under the Volex plc Scrip Dividend
Scheme, conditional on shareholders approving the resolutions to renew the
scheme at the Company's upcoming AGM. The reference price for the Scrip
Dividend will be announced on 7 August 2025. Shareholders who wish to elect to
receive the final dividend in shares must (i) complete a Scrip Dividend
Mandate Form (available on the Company's website) and return it to Link Group,
(ii) make a Scrip election online via www.signalshares.com, or (iii) submit a
Dividend Election Input Message in CREST, in each case by no later than 5.00
p.m. on 14 August 2025. Those shareholders who have opted into a permanent
scrip election by completing (and not cancelling) a Scrip Dividend Mandate
Form either in hard copy or via www.signalshares.com do not need to complete a
new mandate form for the final dividend. However, shareholders holding their
shares in CREST need to make an election for each dividend and would need to
submit a Dividend Election Input Message in respect of the final dividend. A
copy of the terms and conditions for the Volex plc Scrip Dividend Scheme are
available on the Company's website
https://www.volex.com/media/gmimrtsd/volex-plc-scrip-dividend-scheme-terms-conditions-final-2022.pdf.
Executive Chairman's Statement
Overview
FY2025 represented another exceptional year for Volex as we delivered a robust
performance against a challenging macroeconomic backdrop. Group revenue
increased by 19.0% to $1,086.5 million (FY2024: $912.8 million), with organic
growth of 11.1%, driven by strong performances in Electric Vehicles and
Consumer Electricals, while underlying operating profit rose above $100
million for the first time, an 18.4% increase to $106.2 million (FY2024: $89.7
million), supported by volume growth and the full-year benefit of the Murat
Ticaret acquisition. Underlying operating margins were maintained at 9.8%
(FY2024: 9.8%) at the upper end of our target range of 9-10%.
Specialist manufacturer with distinctive expertise
Our reputation as a specialist manufacturer stems from our extensive market
knowledge and ability to deliver precision solutions tailored to meet complex
customer requirements. Our expertise spans high growth markets, including
electric vehicles, medical, consumer electricals, complex industrial
technology and off-highway applications, allowing us to deliver value-added,
innovative solutions tailored precisely to customer specifications.
Our business model revolves around delivering exceptional quality and
unparalleled customer service. Through cost competitiveness, consistently high
quality and responsive customer service, we have created substantial customer
lock-in. The high degree of technical integration and regulatory requirements
of many of the end-markets we support further enhances our long term
relationships, driving continued customer satisfaction and repeat business.
Growth from existing and new customers
Much of our growth this year came from winning new projects from existing
customers, including high-speed data centre cables and high-voltage connectors
for a major Electric Vehicles customer. We also successfully onboarded a
number of significant new customers across strategic sectors including
medical, off-highway and electric vehicles.
Navigating tariff challenges and opportunities
The evolving tariff environment has seen customers adopt a more cautious, long
term approach to their global supply chain strategy. Our world-wide footprint
enables us to work closely with customers, proactively adjusting production
locations and minimising potential disruptions. Our products are essential
components in complex supply chains and, in many cases, Volex is either the
sole supplier or one of a few manufacturers qualified to meet rigorous
technical and operational requirements, driving deep customer reliance and
stickiness.
Where incremental costs arise due to tariff changes, these will be passed
through to customers. Our interconnected approach and single points of contact
simplify the global manufacturing process, delivering ease and clarity for our
customers. We have already successfully relocated numerous complex customer
projects to alternative manufacturing locations. Additionally, tariffs offer
us strategic opportunities to engage deeply with existing and potential
customers, gaining insights into their strategic challenges and manufacturing
plans. This proactive dialogue helps us identify further areas where Volex can
deliver enhanced support and value.
Delivering our strategy
In FY2025, we expanded our global Off-Highway capabilities, establishing sales
teams and manufacturing capacity in North America. Despite facing higher
labour costs, particularly in Türkiye, we proactively identified and
implemented our business-wide operational excellence principles, maintaining
competitiveness and protecting our margins. The integration of Murat Ticaret
has continued to deliver significant opportunities and we remain focused on
driving further productivity improvements across the business, enhancing
profitability through site optimisation, productivity gains and supply chain
efficiencies.
FY2025 marked a transformative year in the evolution of our wider
manufacturing footprint. We invested $14 million in establishing advanced
manufacturing centres of excellence, consolidating multiple manufacturing
techniques within individual sites to achieve greater operational efficiency,
scalability and customer responsiveness. Our return on capital employed
remained around 20% despite this increased investment. The closure of our site
in Shenzhen during FY2025 reduced our China footprint to two highly efficient
factories, streamlining operations and enhancing efficiency. Strategic site
consolidations are set to continue in FY2026, with further relocations and
rationalisations planned in other regions to optimise our global manufacturing
presence.
In a fragmented manufacturing market, Volex's ability to leverage scale,
flexibility and advanced capabilities differentiates us significantly from
competitors. Our sophisticated manufacturing hubs allow us to deliver
comprehensive, high quality solutions rapidly, ensuring we remain a preferred
partner in our specialised sectors. Our strategic investments and focus on
scale have supported remarkable revenue growth, from $615 million in FY2022 to
$1,087 million in FY2025, representing a 77% increase over three years through
a combination of organic growth and acquisitions. This sustained growth
demonstrates the scalability and resilience of our business model and
underscores our strategic clarity.
Acquisition strategy
Acquisitions continue to play a crucial role in our growth strategy. In
FY2025, we continued the integration of Murat Ticaret, enhancing our market
position and capabilities. These acquisitions have not only expanded our
product offerings and geographic footprint, but have also provided new
opportunities for cross-selling and leveraging operational efficiencies.
Our disciplined approach to identifying and integrating acquisitions ensures
alignment with our long term strategic objectives, driving sustainable growth
and value creation for our stakeholders. We continue to review a number of
acquisition opportunities, in markets we understand well, with a major focus
on executing any transactions at attractive valuations.
Investing in our people
Our employees remain the cornerstone of our continued success and we remain
deeply committed to nurturing a culture of growth, development and employee
engagement. Our structured onboarding, comprehensive training programmes and
ongoing professional development initiatives empower our teams to realise
their full potential. We actively invest in recognising and rewarding
performance, enhancing engagement and morale across our global operations. Our
talented senior leadership team, supported by dedicated professionals at all
organisational levels, consistently drives exceptional customer outcomes,
reinforcing our industry-leading position.
Sustainable and responsible operations
Volex is deeply committed to sustainability and responsible business
practices. Throughout FY2025, we continued to advance our sustainability
initiatives, aligning our operations with the UN's Sustainable Development
Goals. We have made significant progress in reducing carbon intensity,
expanding renewable energy usage and optimising resource efficiency. Our
global teams actively pursue energy-saving innovations, waste reduction and
sustainable procurement practices. These initiatives reflect our commitment to
environmental stewardship and reinforce our role as a responsible global
manufacturer.
Enhancing our capabilities
In FY2025, we made significant investments in automation, digitalisation and
advanced manufacturing technologies across our global facilities. This has
enhanced productivity, improved quality control and reduced manufacturing lead
times. Targeted investments in production monitoring systems and process
automation reinforce our commitment to operational excellence and
technological leadership.
We strengthened our supply chain resilience by enhancing sourcing strategies,
increasing local-for-local production and implemented additional risk
management protocols. By maintaining robust supplier relationships and
rigorous quality standards, we have ensured reliability and efficiency across
our operations, mitigating disruptions from external shocks and geopolitical
events.
Dividend increase reflects confidence
In recognition of our sustained business performance and robust financial
position, the Board is pleased to propose an increased final dividend of 3.0
pence per share. This final dividend, combined with an interim dividend of 1.5
pence per share, results in a total dividend for FY2025 of 4.5 pence. This
reflects our confidence in the ongoing strength and sustainable growth
prospects of our business.
Outlook and future prospects
The outlook for Volex remains strong, driven by our diversified business model
and exposure to structural growth drivers.
Despite macroeconomic challenges, our proactive approach and strategic agility
provide confidence in our continued ability to grow profitably, with a strong
pipeline of diverse customer projects providing excellent near term
visibility. We are actively investing in expanding our capabilities, enhancing
efficiency and deepening customer relationships.
FY2026 has started strongly, with good performance in the first two months of
the year. We are particularly encouraged by the opportunities in FY2026 for
incremental projects in Off-Highway, Electric Vehicles and for our data centre
customers.
We have delivered a further year of strong organic growth and higher
underlying operating profit. This means we are firmly on track to deliver our
five-year plan objectives, supported by a clear vision, strategic clarity and
unwavering commitment to excellence across all business dimensions.
Review of FY2025 performance
2025 2024
Before Adjusting Total Before Adjusting Total
adjusting items and $'m adjusting items and $'m
share-based
items and
items and share-based
payments
share-based
$'m share-based payments
payments payments $'m
$'m $'m
Revenue
North America 503.5 - 503.5 372.3 - 372.3
Asia 170.4 - 170.4 185.1 - 185.1
Europe 412.6 - 412.6 355.4 - 355.4
1,086.5 - 1,086.5 912.8 - 912.8
Cost of sales (853.7) - (853.7) (710.0) - (710.0)
Gross profit 232.8 - 232.8 202.8 - 202.8
Operating expenses (126.6) (23.3) (149.9) (113.1) (25.8) (138.9)
Operating profit 106.2 (23.3) 82.9 89.7 (25.8) 63.9
Share of net profit from associates 4.2 - 4.2 3.2 - 3.2
Finance income 0.7 - 0.7 1.3 - 1.3
Finance costs (23.5) - (23.5) (16.8) - (16.8)
Profit before taxation 87.6 (23.3) 64.3 77.4 (25.8) 51.6
Taxation (19.4) 4.1 (15.3) (15.9) 4.5 (11.4)
Profit after tax 68.2 (19.2) 49.0 61.5 (21.3) 40.2
Trading performance overview
The Group delivered a strong financial performance in FY2025, generating
revenue of $1,086.5 million (FY2024: $912.8 million), an increase of 19.0%
year-on-year. This included organic revenue growth of 11.1%, in a challenging
macroeconomic environment and an $84.8 million contribution from the full-year
impact of the prior year's acquisition of Murat Ticaret. Changes in foreign
currency exchange rates had an $11.1 million adverse impact on revenues
compared to the prior year.
Electric Vehicles and Consumer Electricals performed very strongly with
organic growth of 40% and 10%, respectively. This represents a strong recovery
from FY2024, where customer destocking had resulted in a reduction in organic
revenue in both areas.
There was variability in demand from customers who buy more complex wire
harnesses and assemblies across the Medical, Complex Industrial Technology and
Off-Highway sectors. This was principally due to improvements in component
availability in the prior year allowing customers to fulfil extended backlogs.
Complex Industrial Technology and Off-Highway grew organically at 15% and 4%
respectively, while, as guided last year, Medical declined by 5%. The growth
in Complex Industrial Technology was aided by significant growth from Data
Centre customers.
On a geographical basis, revenues from North America, our largest segment,
increased by 35.2% to $503.5 million (FY2024: $372.3 million), with Europe
also increasing by 16.1% to $412.6 million (FY2024: $355.4 million) due to the
prior year Murat Ticaret acquisition. Our revenues in the Asia segment
declined by 7.9% to $170.4 million (FY2024: $185.1 million) following a change
in the mix of Data Centre customers, which benefitted the North American
segment.
Underlying operating profit rose by 18.4% to $106.2 million (FY2024: $89.7
million), supported by increased volumes and the full-year benefit of the
Murat Ticaret acquisition. Statutory operating profit increased to $82.9
million (FY2024: $63.9 million), including adjusting items and share-based
payments of $23.3 million (FY2024: $25.8 million).
The Group's underlying operating margin was 9.8%, in line with the prior year.
Higher volumes, rigorous cost controls, efficiencies from vertical
integration, a favourable sales mix and the Murat Ticaret acquisition have
enabled continued investment in growth initiatives while maintaining
profitability in the upper half of our target margin range. This performance
underscores the resilience and adaptability of our business in the face of
ongoing macroeconomic challenges and inflationary pressures.
Underlying free cash flow generation of $42.2 million (FY2024: $56.8 million)
which represents cash conversion of 67.2% (FY2024: 89.6%), reflects a year of
investment in capacity with increases in working capital to support increased
customer demand. In the previous year, improving supply chain conditions
resulted in a reduction of inventory including lower levels of safety stock.
The robust cash generation supported capital investment, dividend
distributions and acquisition spending of, approximately, $67 million (FY2024:
$177 million). The prior year acquisition spend was also partially funded
through an equity raise. As of 30 March 2025, net debt (excluding operating
leases) stood at $127.4 million (31 March 2024: $121.1 million), excluding
$47.4 million (31 March 2024: $32.9 million) of operating lease liabilities.
The Group's covenant net debt to adjusted EBITDA ratio remained healthy at 1.0
times (FY2024: 1.0 times), providing substantial headroom and financial
flexibility.
Impact of the macroeconomic backdrop
Global trade dynamics and evolving tariffs continue to present both challenges
and opportunities for our customers. Our extensive global manufacturing
footprint uniquely positions us to support customers seeking continuity,
flexibility, or a strategic balance of both. With significant experience in
relocating production, we effectively de-risk the process, simplifying the
complexities and ensuring seamless transitions.
Based upon the tariff changes that have been enacted or announced by the US
administration up to mid-June 2025, around 12% of FY2025 Group revenue would
have been impacted by tariff changes:
· 2% of revenue is attributable to imports from China into the US where
the relevant commodities codes are impacted by a change in tariff rates
· 4% of revenue is for goods imported from Mexico that do not qualify
as USMCA compliant
· The remaining 6% represents imports into the US from other countries,
mainly Indonesia and Türkiye, where tariff rates have increased
Goods that already incurred a tariff but where that tariff is unchanged based
on US trade policy in June 2025 are not included in the above analysis.
Products that comply with USMCA which are tariff-free into the US are also
excluded from these numbers.
While inflation remains elevated relative to historical levels, it has
moderated compared to the prior year in all the regions we operate in apart
from Türkiye. Labour inflation continues to be a headwind in Türkiye and the
local government are delivering reforms intended to stabilise the economic
situation. We are reducing headcount and accelerating productivity actions to
manage this labour inflation and to ensure profitability remains in line with
the Group's target range.
Our transparent and structured approach to managing inflation is well
understood by customers. In our power cord segment, where copper is a
significant cost component, contractual mechanisms allow for cost
pass-throughs, albeit with a short time lag. Other inflationary impacts, to
the extent they are not offset by productivity gains, are addressed through
regular or ad hoc pricing discussions, typically occurring quarterly or as
needed.
During the year, there was further improvement in component availability. This
resulted in some customers increasing production to reflect more consistent
supply chains, whereas other customers were managing inventory levels and
reducing buffer stock.
Revenue by reportable segment
Volex is a global, interconnected and integrated business. Supporting our
customers is at the core of our business model and our extensive global
footprint enables us to do so efficiently and effectively. As customers
increasingly seek multi-location manufacturing solutions to reduce the risk of
supply chain disruptions and align production closer to end markets, our
regionally focused operations are well-positioned to meet these evolving
needs. Our business is structured on a regional basis, with reporting lines
through Regional Chief Operating Officers. Accordingly, we present our
segmental information in alignment with this regional operating model. We
analyse customer revenue by geographic region, based on where each customer
relationship is managed, reflecting our commitment to a customer-centric
approach.
North America
North America represents our largest customer segment, where we collaborate
with some of the region's major technology companies and global innovators.
This sector includes products that we manufacture within the US, those shipped
to Canada and Mexico and those shipped elsewhere worldwide, where the customer
relationship is managed in North America. This segment comprises 46.3% of
Group revenue (FY2024: 40.8%). Revenue grew by 35.2% to $503.5 million
(FY2024: $372.3 million). This reflects the strong organic growth we
experienced with Electric Vehicles customers and within Data Centres,
supplemented by the contributions from the Murat Ticaret North American
customers.
Asia
Asia constitutes 15.7% of Group revenue (FY2024: 20.3%). Asia revenue reduced
by 7.9% to $170.4 million (FY2024: $185.1 million). The decreased revenue is
related to a change in the regional mix for Data Centre customers, with
increased sales to North American-based customers. This is partly offset by
growth from inYantra, which is exposed to the rapidly expanding Indian market,
along with the recovery in the Consumer Electricals end-market.
Europe
Europe now accounts for 38.0% of Group revenue (FY2024: 38.9%). Revenue in
Europe increased by 16.1% to $412.6 million (FY2024: $355.4 million)
principally due to the acquisition of Murat Ticaret. Excluding Murat Ticaret,
regional revenue declined due to continued macroeconomic pressures in
industrial manufacturing and reduced demand in the medical sector, driven by
inventory rationalisation. However, Europe saw a recovery in the consumer
market in FY2025 compared to the prior year.
Revenue by customer sector
Electric Vehicles
Revenue from Electric Vehicles increased to $172.9 million (FY2024: $123.7
million), an increase which was predominantly volume driven, representing
organic growth of 40.2% compared to a weaker prior year, which was impacted by
customer destocking. Growth was further supported by a major new programme
with a leading global North American automotive manufacturer. This programme
involves the supply of advanced high-voltage connectors produced at our newly
expanded, highly automated facility in Mexico.
As announced in the prior year, Volex is a licensed partner of Tesla for the
North American Charging Standard ('NACS') EV charging system. We have secured
several new projects, with a variety of customers, which leverage our deep
expertise in this area. This reinforces Volex's reputation as a trusted
manufacturing partner for the world's leading EV manufacturers and suppliers.
We now work with a variety of EV manufacturers who, in aggregate, represent
two-thirds of all electric vehicles sold in Europe and the US.
Looking ahead, medium term demand for electric vehicles is expected to remain
strong, supported by favourable legislation in key markets driving further
adoption. Volex is well-positioned to capitalise on this growth, not only from
increasing vehicle volumes, but also by identifying new specialist
manufacturing opportunities across the EV supply chain. Building on our
extensive experience in EV charging technology, we have broadened our product
portfolio to include faster AC charging solutions and out-of-home charging
infrastructure, with the goal of expanding our customer base.
To sustain our competitive advantage as one of the industry's lowest-cost
producers, we continue to invest in new product development, strengthen
vertical integration and enhance manufacturing efficiency, essential
initiatives as the competitive landscape becomes increasingly dynamic.
Consumer Electricals
Revenue from Consumer Electricals customers increased to $257.0 million
(FY2024: $235.3 million), representing organic growth of 9.6%. This growth was
primarily driven by higher volumes, with a smaller contribution from the
pass-through of increased raw material costs, most notably copper, a key
component in power cords.
In FY2024, the end-market experienced a decline in demand due to a
normalisation in consumer spending and widespread customer destocking.
However, momentum returned in the final quarter of FY2024 and continued
throughout the current year, indicating that destocking in this sector is
complete.
Volex's competitive advantage in Consumer Electricals lies in its efficient,
global manufacturing footprint, achieved through a strategic combination of
geographic reach, automation, continuous improvement and vertical integration.
This enables us to deliver high quality power cords across all major markets
at competitive prices. Our ability to provide a truly global solution is a key
reason why we remain a trusted supplier to many of the world's leading
Consumer Electricals brands.
As a result, we are successfully securing new customer projects and are
well-positioned for sustained growth now that inventory levels have
stabilised.
In addition, our deep expertise in wire harness manufacturing is unlocking
further opportunities for expansion. We are seeing strong customer interest as
we seek to grow our presence in domestic appliance harnesses, where our
current market penetration remains relatively low. This growth is supported by
a strategic focus on cross-selling across our manufacturing network, enhancing
customer retention and driving long term success in a dynamic and evolving
market environment.
Medical
As anticipated, demand in the Medical market declined during the year,
following an exceptionally strong comparative period in FY2024. The prior year
benefited from a one-off uplift as improved component availability enabled
customers to clear significant order backlogs. In addition, some customers
have been prioritising inventory optimisation, aligning their production
schedules more closely with end-user demand. As a result, revenue decreased to
$168.0 million (FY2024: $177.5 million), representing an organic decline of
4.9%.
While the near term environment remains impacted by customer inventory
adjustments, we expect demand to begin normalising once these actions are
complete. For several key customers, this stabilisation is anticipated towards
the end of the 2025 calendar year.
Despite current headwinds, the medium to long term outlook for the Medical
market remains robust. Volex supports a wide range of advanced medical
technology companies and has recently secured partnerships with several
prominent global businesses, further strengthening our position in this high
value market.
Structural tailwinds, such as a globally ageing population, rising demand for
healthcare services and rapid advancements in medical technologies, including
diagnostic imaging, patient monitoring and minimally invasive surgical
systems, are expected to drive sustained demand. In addition, increased focus
on home healthcare and portable medical devices opens new avenues for growth
where Volex's expertise in interconnect solutions and wire harnesses can add
significant value.
Complex Industrial Technology
Sales to Complex Industrial Technology customers grew organically by 14.5% to
$244.4 million (FY2024: $213.4 million). A key driver of this growth was the
strong performance in the Data Centre sub-sector, where revenue increased by
33% year-on-year. This reflects the global acceleration in investment in
data-intensive artificial intelligence applications and related
infrastructure, with Data Centre revenues now accounting for 48.3% of total
sector revenues (FY2024: 41.7%). Towards the end of the year, there was a
one-time revenue pull-forward of approximately $11 million relating to Data
Centres.
The lower growth within other parts of the industrial customer base was caused
by the natural decline of certain programmes as customer technology platforms
went obsolete, which reduced growth by 5%. This was partially offset by the
launch of new projects. Notably, we secured key wins with HVAC customers, with
production beginning during the year. These programmes are expected to
contribute more meaningfully as they scale.
This market continues to benefit from significant diversification across
customer verticals and technical capabilities. Volex provides a broad range of
complex interconnect solutions and power products to customers in sectors such
as data infrastructure, industrial automation, building technology and energy
systems.
As technology continues to evolve and industries become more interconnected,
our ability to support complex, customised solutions across geographies and
markets is a key competitive advantage.
Looking ahead, we expect continued momentum in the data centre market,
underpinned by ongoing AI investment and cloud expansion. Meanwhile, our
growing pipeline of new industrial projects, including those in renewable
energy, HVAC and automation, provides a strong foundation for sustainable,
long term growth.
Off-Highway
Off-Highway revenue reached $244.2 million (FY2024: $162.9 million), with the
full-year impact of Murat Ticaret and organic growth of 3.6%. Demand in the
agricultural and construction sub-sectors was subdued in the year, reflecting
end-customer demand dynamics. This was offset by increased demand from the
European bus and coach market and new business wins. Murat Ticaret, which was
acquired at the end of August 2024 in the prior financial year, contributed
$84.8 million in revenue during the first five months of FY2025.
The Off-Highway sector specialises in the supply of complex wire harnesses,
power connectivity components and connectors to manufacturers of specialised
vehicles. Key end-markets include agricultural machinery, passenger transport
vehicles such as coaches, construction equipment, material handling vehicles
like forklifts and defence applications.
The integration of Murat Ticaret has created substantial cross-selling
opportunities, particularly in the large and fragmented North American market.
We continue to invest in leveraging these synergies by broadening our product
offering and deepening relationships with our high quality customer base
across regions.
Medium term growth prospects in the Off-Highway sector are underpinned by
several structural drivers. These include increasing urbanisation and
infrastructure development, ongoing advances in agricultural technology and a
rising demand for environmentally sustainable and electrified vehicle
solutions. These trends are accelerating investment in next-generation
equipment and driving demand for high performance electrical systems.
Realising our strategy
Our strategy is anchored by five interconnected pillars: market leadership in
structural growth sectors; focused investments to differentiate our business;
embedded relationships through adding value; disciplined acquisitions to drive
growth and a decentralised, agile business model. Together, these pillars
shape our approach to delivering sustainable value and achieving our long term
objectives.
The markets we operate in are niche and fragmented and all display strong
structural growth characteristics. Our expertise has allowed us to build
market-leading positions, creating a resilient business through the cycle.
Strategic investments continue to be vital to our growth. We focus on
initiatives that enhance capacity and capabilities, led by customer needs and
guided by a disciplined evaluation process, typically requiring a two-year
payback. Continued investment in vertical integration has strengthened our
control over the supply chain, increased operational agility and helped
safeguard our margins. Through ongoing investment in research and development,
we have expanded our product offering, working closely with customers to
understand and respond to their specific requirements.
Our customers remain central to everything we do. We take pride in delivering
outstanding quality and service, maintaining open, transparent communication
and continually striving to add value. This customer-first mindset drives
organic revenue growth as we attract new business and grow our share of
existing customer portfolios. To uphold these high standards, we closely
monitor and refine our manufacturing operations, identifying opportunities to
improve efficiency and enhance quality.
Since FY2019, we have successfully deployed nearly $400 million across 12
acquisitions, significantly broadening our product range, expanding our global
manufacturing presence and contributing meaningfully to earnings and margin
growth.
Our ability to realise this strategy is built upon the decentralised operating
culture we have created, empowering local management and enabling faster
customer response times.
Creating value through organic investment
Strategic investment remains a core pillar of our business model, consistently
delivering strong returns. Our disciplined approach ensures projects,
typically, recoup costs within two years, reflecting a robust track record of
value creation. We remain focused on high growth markets, guided by stringent
financial criteria, while continuously enhancing our operational capabilities
to meet rising customer demand and support future product development.
During FY2025, the Group continued to expand its global manufacturing
footprint, investing in capacity growth across Indonesia, India, Mexico, and
Türkiye. These investments, representing a 21% expansion, are aligned with
our five-year growth strategy and are timed to meet the needs of customers
increasingly localising their supply chains. With capacity in place in three
flagship locations, FY2026 provides an opportunity to optimise and consolidate
our footprint.
Total gross capital investment increased to $46.1 million (FY2024: $31.6
million), equivalent to 4.2% of revenue (FY2024: 3.5%). This figure was
slightly below initial planned spending, as some expenditure was deferred into
FY2026. In addition to expanding capacity, capital was directed toward high
growth sectors, particularly Electric Vehicles and Data Centres, where
customer demand and technological innovation continue to accelerate.
Our investment strategy is driven by three key factors: customer demand,
localisation trends and the need to strengthen technical capabilities. These
priorities ensure that capital allocation directly supports both near term
operational goals and long term strategic ambitions.
In FY2025, we also invested $9 million (FY2024: $8 million) in operational
initiatives to support growth. This included costs related to incremental
facility operating costs, increased depreciation from new capital investments
and hiring additional sales and engineering talent. These targeted investments
are critical to enabling future growth while maintaining high service
standards and engineering excellence.
Research and development activities were also expanded, with a focus on
delivering innovative new solutions in two of our fastest-growing markets -
Electric Vehicles and Data Centres. Our innovative in-house designed products
support differentiation and strengthens our long term competitive position.
Overall, our continued investment in infrastructure, talent and innovation is
generating compelling returns, with return on capital employed of 19.7%
(FY2024: 20.7%). These investments are laying a solid foundation for
sustainable, long term success.
Creating value through acquisitions
Successfully acquiring and integrating high quality businesses remains a core
component of our growth strategy. Our typical acquisition target is a
well-managed company operating in a sector where we already have deep
expertise. We prioritise businesses with strong operational capabilities,
long-standing relationships with blue-chip customers and the potential to
deliver meaningful synergies, particularly through cross-selling opportunities
and operational integration.
We generally avoid businesses requiring extensive restructuring unless we are
confident in our ability to allocate the right leadership and resources to
deliver a successful turnaround.
Our acquisition process is disciplined and comprehensive. We pursue both
off-market opportunities and competitive processes, with each potential
transaction subject to rigorous evaluation by our Investment Committee before
moving into formal negotiations. We remain prudent in our valuation approach,
ensuring we understand quality of earnings in acquisition targets. We
undertake due diligence when there is alignment on commercial terms and only
pursue opportunities that meet our strict value-creation criteria, which are
tailored to each transaction's specific characteristics.
Since FY2019, we have acquired 12 businesses, steadily building expertise in
identifying, executing and integrating acquisitions. Our integration
strategies are highly tailored, focusing on capturing cost synergies,
unlocking cross-selling potential and aligning new operations within our
existing regional and organisational structure.
We are actively engaged in evaluating opportunities at various stages of
qualification. With a strong balance sheet, significant undrawn facilities and
access to funding, we are well-equipped to pursue value-accretive
acquisitions. However, we remain disciplined; any transaction must meet our
stringent criteria following comprehensive due diligence and negotiation.
The integration of Murat Ticaret, our largest acquisition to date, is
progressing well. The business brings a strong operating culture, with a focus
on high quality, on-time production for a diverse customer base with complex
requirements. We have already identified areas for improvement in back-office
processes and targeted investments, alongside support from our integration
team, will ensure Murat Ticaret aligns with the best-in-class manufacturing
and reporting standards established across the Group.
Sustainability
We have made steady progress in advancing the sustainability of our
operations, reflecting its critical importance to our business, our customers,
our employees, the communities we serve and our shareholders. Over the past
year, we introduced a set of minimum sustainability standards for all sites to
achieve. We have expanded our use of renewable energy in our operations in
Europe, India and China and have procured renewable energy certificates
covering our energy usage in Türkiye.
Our commitment to sustainability remains embedded in our operational practices
delivered through a kaizen-based framework driving continuous improvement
activities across all our factories. This ensures that each facility
identifies and reports on key initiatives that contribute to both operational
excellence and sustainability. We continue to enhance our performance across
many aspects of sustainability from product carbon footprint assessments to
factory-level energy efficiency programmes. We are establishing science-based
decarbonisation targets to deliver our net zero ambitions, reinforcing our
commitment to long term environmental stewardship.
Chief Financial Officer's Review
52 weeks to 30 March 2025 52 weeks to 31 March 2024
Revenue Profit/(loss) Revenue Profit/(loss)
$'m
$'m
$'m
$'m
North America 503.5 51.9 372.3 32.8
Asia 170.4 20.9 185.1 13.9
Europe 412.6 45.5 355.4 52.9
Unallocated Central costs - (12.1) - (9.9)
Divisional results before share-based payments 1,086.5 106.2 912.8 89.7
and adjusting items
Adjusting operating items (18.3) (19.5)
Share-based payment charge (5.0) (6.3)
Operating profit 82.9 63.9
Share of net profit from associates 4.2 3.2
Finance income 0.7 1.3
Finance costs (23.5) (16.8)
Profit before taxation 64.3 51.6
Taxation (15.3) (11.4)
Profit after taxation 49.0 40.2
Basic Earnings per share:
Statutory 25.9 cents 21.8 cents
Underlying* 36.3 cents 33.7 cents
* Before adjusting items and share-based payments charge, net of tax.
Statutory results
Revenue of $1,086.5 million (FY2024: $912.8 million) represents year-on-year
growth of 19.0%. Statutory operating profit increased by $19.0 million to
$82.9 million (FY2024: $63.9 million), which is an increase of 29.7% compared
to the prior year. Net finance costs were $22.8 million (FY2024: $15.5
million), resulting in a profit before tax of $64.3 million (FY2024: $51.6
million), which is an increase of 24.6%. There was a tax charge for the year
of $15.3 million (FY2024: $11.4 million). Basic earnings per share were 25.9
cents (FY2024: 21.8 cents), an increase of 18.8%.
Alternative performance measures
The Group makes use of underlying and other alternative performance measures
in addition to the measures set out in International Financial Reporting
Standards ('IFRS'). Alternative performance measures are set out in note 15.
Underlying earnings measures exclude the impact of adjusting items and
share-based payments, with further detail regarding the adjustments shown in
note 3 in the notes to the financial statements. The Board and management team
make use of alternative performance measures because they believe they provide
additional information on the underlying performance of the business and help
to make meaningful year-on-year comparisons.
Group revenue
Group revenue increased by 19.0% to $1,086.5 million (FY2024: $912.8 million)
driven by strong organic growth across our core sectors, securing successful
projects and a full-year of contribution from Murat Ticaret. Sales in
currencies other than US dollars resulted in an adverse year-on-year foreign
exchange impact on revenue of $11.1 million. Group organic revenue growth was
11.1%.
Organic revenue from the Electric Vehicles sector increased organically by
40.2% to $172.9 million (FY2024: $123.7 million) as we ramped up production in
our North America sites and commenced projects with new customers. The
year-on-year growth also reflects softer demand in FY2024 when customers were
destocking to reduce buffer stock they had built up due to supply chain
disruption. Sales in the Consumer Electricals sector grew to $257.0 million in
FY2025 (FY2024: $235.3 million), with an organic increase of 9.6%, which is a
positive indicator of the continued recovery. Medical revenues decreased by
4.9% to $168.0 million (FY2024: $177.5 million) on an organic basis against a
strong comparator year that benefitted from one-time customer catch-up orders.
Revenue from Complex Industrial Technology rose to $244.4 million (FY2024:
$213.4 million), marking a 14.5% increase on an organic basis. Excluding Data
Centre customers, revenues were 1.5% higher on an organic basis. Data Centre
revenues saw an increase to $118.0 million (FY2024: $88.8 million), reflecting
a 32.9% growth, primarily driven by an acceleration in Data Centre
infrastructure projects from a major customer in the last quarter of the year.
In FY2025, with a full-year of contribution from Murat Ticaret, revenues in
the Off-Highway sector were $244.2 million (FY2024: $162.9 million), a 3.6%
increase on an organic basis.
Gross margin
The Group's gross margin decreased slightly to 21.4% (FY2024: 22.2%). This
decrease was primarily due to the adverse impact of labour inflation in
Türkiye and a slower devaluation of the local currency than that which was
seen in previous years. Contracts with our Turkish domestic customers contain
inflation pass-through provisions which enable us to recover higher labour
input costs. For Turkish export customers, where we do not have pass-through
arrangements, we have undertaken price renegotiations with customers to
recover a portion of the higher labour costs.
Inflation in other parts of the Group, including labour and other costs, has
been well managed with increased costs offset through efficiency savings and
customer pass-through. While most raw material purchases are denominated in US
dollars, other costs, such as labour, are paid in local currencies.
Variability in certain key currencies had a beneficial impact of,
approximately, 0.5%.
Operating profit
Underlying operating profit increased 18.4% to $106.2 million (FY2024: $89.7
million). This was favourably impacted by foreign exchange, strong organic
growth, product mix and a full-year of contribution from Murat Ticaret, which
was acquired mid-FY2024. The ratio of underlying operating expenses to revenue
was 11.7%, an improvement on the previous year (FY2024: 12.4%), and there
continues to be a strong focus on cost control and continuous improvement
activities. Statutory operating profit increased by 29.7% to $82.9 million
(FY2024: $63.9 million), also reflecting the factors above.
The Group's underlying operating margin was maintained within the stated range
of 9% to 10% at 9.8%, which was in line with FY2024. Despite continuing
headwinds from labour inflation, operating margins have been maintained
through favourable product mix, pricing discipline and the effective
management of operational costs.
Adjusting items and share-based payments
The Group presents some significant items separately to provide clarity on the
underlying performance of the business. This includes significant one-off
costs, such as restructuring and acquisition-related costs, the non-cash
amortisation of intangible assets acquired as part of business combinations
and share-based payments, as well as associated tax. In March 2025, the Group
closed its site in Shenzhen, China, after successfully transferring the
business to other Volex sites. This resulted in one-off closure costs of $4.0
million. Acquisition costs of $0.4 million (FY2024: $3.8 million) were
incurred in the year. As well as undertaking third-party due diligence, the
Group uses its own experts and in-depth understanding of the sector to conduct
a robust assessment of all acquisition targets.
Amortisation of acquired intangibles decreased to $10.2 million (FY2024: $13.4
million). The charge recognised through the income statement for share-based
payment awards comprises $4.7 million (FY2024: $5.5 million) in respect of
compensation to senior management and $0.3 million (FY2024: $0.8 million) for
associated payroll taxes.
Share-based payments include awards made to incentivise senior management as
well as awards granted to the senior management of acquired companies. The
awards made to acquired company management form an important part of the
negotiation of consideration for an acquisition. They are used to reduce the
cash consideration and as an incentivisation and retention tool. In accordance
with IFRS, where these awards include ongoing performance features, they are
recognised in the income statement rather than as part of the cost of
acquisition.
Net finance costs
Net finance costs increased to $22.8 million (FY2024: $15.5 million) mainly
due to the higher levels of debt through the year as the Group continues to
grow rapidly. The financing element for leases for the year was $4.0 million
(FY2024: $2.7 million). The amortisation of debt issue costs of $2.1 million
(FY2024: $0.7 million) were higher due to the one-off write-off from the
previous facility, following the Group refinancing in June 2024.
Taxation
The Group's income tax expense for the period was $15.3m (FY2024: $11.4m),
representing an effective tax rate ('ETR') of 23.8% (FY2024: 22.1%). The ETR
is higher than the prior year due to increases in expenditure that is not
deductible for tax purposes and the amount provided for the future tax
consequences of remitting earnings of overseas subsidiaries back to the UK.
The underlying ETR (representing the income tax expense on profit before tax,
adjusting items and share-based payments) was 22.1% (FY2024: 20.5%). There was
an adverse impact on the underlying ETR from assessments made in relation to
deferred tax asset recognition across multiple territories which had an impact
of 1.0% for the year (FY2024: 0.5% favourable) primarily due to losses
incurred in territories where the Group does not expect future profits.
The net underlying ETR benefit across all entities where the tax and
functional currencies are different was 2.9% (FY2024: 0.1%). The main driver
of this was Türkiye where the functional currency is euro, but income tax
liabilities are required to be calculated using Turkish lira books and
records. The adverse effect of Turkish lira depreciation on the income tax
expense was outweighed by the favourable impact of inflation adjustments for
local tax purposes, as the rate of inflation in Türkiye was higher than the
rate of Turkish lira depreciation during the year.
The rate of currency depreciation and inflation in Türkiye will continue to
be a major source of volatility for the Group's ETR in FY2026 and future
years. The Turkish Ministry of Finance have delayed the application of tax
inflation adjustments for the 2025 calendar year from quarterly advance tax
returns to the annual tax return. If tax inflation adjustments for calendar
2025 were to be cancelled by a future tax law change, it would have a
significant adverse impact on ETR during FY2026. The ETR is also sensitive to
developments surrounding the Group's uncertain tax positions and the continued
availability of tax incentives and reduced rate regimes.
Cash tax paid during the period was $15.8 million (FY2024: $14.9 million),
representing an underlying cash ETR of 18.0% (FY2024: 19.3%). This continues
to be below the underlying ETR due to the utilisation of tax losses, primarily
in the UK.
The Group operates in a number of different tax jurisdictions and is subject
to periodic tax audits by local authorities in the normal course of business
on a range of tax matters in relation to corporate tax and transfer pricing.
As at 30 March 2025, the Group has net current tax liabilities of $12.2
million (FY2024: $16.5 million) which include $10.8 million (FY2024: $10.8
million) of provisions for tax uncertainties. There is a further $1.7 million
(FY2024: $1.1 million) of accrued interest relating to these amounts
recognised in other payables.
Foreign exchange
The majority of the Group's revenue is in US dollars, with sales in other
currencies including euro and British pounds sterling. Most raw materials
purchases are also denominated in US dollars, but other costs, such as rent,
utilities and salaries are paid in local currencies. This creates a small
operating profit exposure to movements in foreign exchange, some of which is
hedged. In addition, foreign exchange losses from retranslation of balance
sheet items and the timing between recognition and settlement of certain
financial assets for the period were $1.0 million (FY2024: $2.3 million loss).
Cash flow
Operating cash flow before movements in working capital was $129.4 million
(FY2024: $102.7 million). While benefiting from the strong operating
performance, operating cash flow reflects the increased investment in the
business. There was an unfavourable working capital movement of $18.1 million,
which compares to a $1.9 million favourable movement in FY2024. The reasons
for the working capital movement are set out below:
· An increase in inventory to support growth in sales and new customer
projects, including a major customer in the Data Centre market. This resulted
in a cash outflow of $24.2 million (FY2024: $5.6 million cash outflow)
· An increase in receivables leading to a cash outflow of $19.8 million
(FY2024: $17.4 million cash outflow) with the increase reflecting growth of
the business
· An inflow related to payables of $25.9 million (FY2024: $24.9 million
cash inflow). This was due to the growth in the business and associated with
increased customer inventory
Net capital expenditure increased to $45.3 million (FY2024: $31.2 million).
During the year, the Group has invested in expanding facilities in Mexico,
Indonesia, India and Türkiye in order to increase capacity and capabilities
as the Group continues to grow. We have continued with our investment in
improving capabilities, automation and vertical integration and in our sites.
Free cash flow represents net cash flow before financing activities excluding
the net outflow from the acquisition of subsidiaries and associates and the
interest element of lease payments and was $36.8 million (FY2024: $49.8
million).
Net financing outflows were $15.0 million (FY2024: inflows $98.2 million).
Outflows include the purchase of Volex shares to cover share based payment
obligations and dividend payments of $9.7 million (FY2024: $6.7 million).
Total cash expenditure on acquisitions (net of cash acquired) was $10.9
million (FY2024: $138.8 million), including $10.9 million (FY2024: $2.2
million) in respect of contingent and deferred consideration and $nil
(FY2024: $2.3 million) in respect of the purchase of shares of associates.
The Group is expecting to make payments of up to €20.0 million in FY2026 in
relation to contingent consideration for acquisitions made in FY2024.
The cash outflow associated with the settlement of awards under share-based
payment arrangements was $11.0 million (FY2024: $9.3 million). There were no
cash inflows from new shares issued in the year (FY2024: $72.3 million
inflow).
Net debt and leverage
As at 30 March 2025, the Group's net debt (before operating lease liabilities)
was $127.4 million and $174.8 million including operating lease liabilities.
At 31 March 2024, net debt (before operating lease liabilities) was $121.1
million and $154.0 million including operating lease liabilities.
At 30 March 2025, the Group's covenant leverage was 1.0 times (31 March 2024:
1.0 times). For further details on the Group's covenants, see the section on
'Banking facilities and covenants'.
Dividend
The Board's dividend policy, while factoring in earnings cover, also takes
into account other factors such as the expected underlying growth of the
business, capital expenditure and other investment requirements. The strength
of the Group's balance sheet and its ability to generate cash are also
considered.
A final dividend of 3.0 pence per share (FY2024: 2.8 pence) will be
recommended to shareholders at the Annual General Meeting, reflecting the
Board's confidence and the Group's robust financial position. The cash cost of
this dividend is expected to be, approximately, $7.1 million, assuming no
take-up of the scrip dividend.
Together with an interim dividend of 1.5 pence per share paid in December
2024, this equates to a full-year dividend of 4.5 pence per share (FY2024: 4.2
pence per share), an increase of 7.1%. If approved, the final dividend will be
paid on 5 September 2025 to all shareholders on the register at 1 August 2025.
The ex-dividend date will be 31 July 2025.
Banking facilities and covenants
In June 2024, the Group completed a refinancing of its banking facilities with
an eight-bank club. An enlarged $600 million facility replaced the Group's
prior $300 million multicurrency revolving credit facility. The new facility
has an initial four-year term, with an extension option for one additional
year. It comprises a $400 million revolving credit facility and an additional
$200 million uncommitted accordion.
As at 30 March 2025, drawings under the facility were $162.8 million (FY2024:
$143.6 million).
At the year end, the covenant leverage was 1.0x and covenant interest cover
was 8.6 times, well within the covenant terms of less than 3.0x and greater
than 3.0 times respectively.
Financial instruments and cash flow hedge accounting
In September 2022, an interest rate swap was entered into following market
evaluation, which has enabled the Group to fix the interest rate paid on a
notional value of $50 million for a four-year period. For most products we
sell to Consumer Electricals customers, the price of copper has an impact on
the cost of key raw materials. This risk is minimised by passing the
variability in cost through to the end customer in most cases. Where the
customer contract does not provide for the pass-through of risk, the Group
enters into forward contracts to mitigate the Group's exposure to copper price
volatility (which has been identified by the Group as a key risk).
Post balance sheet events
On the 2 April 2025, the Group contributed certain trade and assets of
Terminal & Cable ('TC'), its Canadian Off-Highway business into a newly
incorporated partnership. The Group retains a 49% interest in the new venture.
Under this structure, the business will qualify as a Canadian indigenous owned
operation which will be a significant advantage when submitting tenders for
defence and aerospace opportunities. At the year end, TC was accounted for as
held for sale, with a measurement loss of $2.2m recognised within adjusting
items. Following the transaction, the newly incorporated entity will be
accounted for as an investment in associate.
On the 11 April 2025, the Group exercised its option to acquire two properties
in Türkiye.
Defined benefit pension schemes
The Group's net pension deficit under IAS 19 as at 30 March 2025 was $7.9
million (FY2024: $7.1 million deficit).
Consolidated Income Statement
For the 52 weeks ended 30 March 2025 (52 weeks ended 31 March 2024)
2025 2024
Before Adjusting items and share-based payments Total Before Adjusting items and share-based payments Total
adjusting items and share-based payments (Note 3) adjusting items and share-based payments (Note 3)
Notes $'m $'m $'m $'m $'m $'m
Revenue 2 1,086.5 - 1,086.5 912.8 - 912.8
Cost of sales (853.7) - (853.7) (710.0) - (710.0)
Gross profit 232.8 - 232.8 202.8 - 202.8
Operating expenses (126.6) (23.3) (149.9) (113.1) (25.8) (138.9)
Operating profit 2 106.2 (23.3) 82.9 89.7 (25.8) 63.9
Share of net profit from associates 4.2 - 4.2 3.2 - 3.2
Finance income 0.7 - 0.7 1.3 - 1.3
Finance costs (23.5) - (23.5) (16.8) - (16.8)
Profit before taxation 87.6 (23.3) 64.3 77.4 (25.8) 51.6
Taxation 4 (19.4) 4.1 (15.3) (15.9) 4.5 (11.4)
Profit for the period 68.2 (19.2) 49.0 61.5 (21.3) 40.2
Profit is attributable to:
Owners of the parent 67.0 (19.1) 47.9 60.5 (21.2) 39.3
Non-controlling interests 1.2 (0.1) 1.1 1.0 (0.1) 0.9
68.2 (19.2) 49.0 61.5 (21.3) 40.2
Earnings per share (cents)
Basic 5 36.3 25.9 33.7 21.8
Diluted 5 35.8 25.6 33.0 21.4
Consolidated Statement of Comprehensive Income
For the 52 weeks ended 30 March 2025 (52 weeks ended 31 March 2024)
2025 2024
$'m $'m
Profit for the period 49.0 40.2
Items that will not be reclassified subsequently to profit or loss
Actuarial loss on defined benefit pension schemes (1.6) (0.2)
Tax relating to items that will not be reclassified 0.4 0.1
(1.2) (0.1)
Items that may be reclassified subsequently to profit or loss
(Loss) / gain arising on cash flow hedges during the period (9.5) 0.1
Exchange (loss) / gain on translation of foreign operations (0.5) 0.7
Tax relating to items that may be reclassified 2.6 (0.2)
(7.4) 0.6
Other comprehensive (expense) / income for the period (8.6) 0.5
Total comprehensive income for the period attributable to:
Owners of the parent 39.6 39.9
Non-controlling interests 0.8 0.8
40.4 40.7
Consolidated Statement of Financial Position
As at 30 March 2025 (31 March 2024) Notes 2025 2024
$'m
$'m
Non-current assets
Goodwill 120.2 121.4
Other intangible assets 119.7 131.7
Property, plant and equipment 116.8 91.8
Right-of-use assets 46.9 38.4
Interests in associates 11.2 8.1
Other investments 1.0 -
Other receivables 2.3 2.0
Derivative financial instruments 0.5 1.5
Retirement benefit asset 1.7 0.4
Deferred tax assets 23.6 25.9
443.9 421.2
Current assets
Inventories 197.9 174.3
Trade receivables 206.5 187.6
Other receivables 23.4 23.4
Current tax assets 2.2 1.8
Assets classified as held for sale 4.3 -
Derivative financial instruments 0.7 1.0
Cash and bank balances 8 37.7 29.8
472.7 417.9
Total assets 916.6 839.1
Current liabilities
Borrowings 8 3.0 3.3
Lease liabilities 8 24.0 21.3
Trade payables 146.7 133.1
Other payables 114.3 101.4
Liabilities relating to assets classified as held for sale 2.9 -
Current tax liabilities 14.4 18.3
Provisions 9 4.9 2.9
Derivative financial instruments 6.4 0.4
316.6 280.7
Net current assets 156.1 137.2
Non-current liabilities
Borrowings 8 160.5 143.1
Lease liabilities 8 25.0 16.1
Other payables 7.0 26.9
Deferred tax liabilities 26.6 28.2
Retirement benefit obligations 9.6 7.5
Provisions 9 1.1 1.0
229.8 222.8
Total liabilities 546.4 503.5
Net assets 370.2 335.6
Equity
Share capital 11 70.5 69.6
Share premium account 11 71.6 62.0
Non-distributable reserve 12 2.5 2.5
Hedging and translation reserve (21.0) (13.9)
Own shares 12 (6.0) (4.3)
Retained earnings 243.4 211.3
Total attributable to owners of the parent 361.0 327.2
Non-controlling interests 9.2 8.4
Total equity 370.2 335.6
Consolidated Statement of Changes in Equity
For the 52 weeks ended 30 March 2025 (52 weeks ended 31 March 2024)
Share Share premium account Non-distributable reserves Hedging and translation reserve Own shares Retained earnings Equity attributable to owners Non-controlling interests Total equity
capital
$'m $'m $'m $'m $'m $'m $'m $'m $'m
Balance at 2 April 2023 62.7 60.7 2.5 (14.6) (1.0) 115.0 225.3 7.4 232.7
Profit for the period - - - - - 39.3 39.3 0.9 40.2
Other comprehensive income / (expense) for the period - - - 0.7 - (0.1) 0.6 (0.1) 0.5
Total comprehensive income for the period - - - 0.7 - 39.2 39.9 0.8 40.7
Equity raise 6.7 1.5 - - - 64.1 72.3 - 72.3
Business combination - - - - - - - 0.2 0.2
Own shares purchased in the period - - - - (9.1) - (9.1) - (9.1)
Own shares sold / (utilised) in the period - - - - 5.8 (5.8) - - -
Dividend paid - - - - - (9.3) (9.3) - (9.3)
Scrip dividend related share issue 0.2 (0.2) - - - 2.6 2.6 - 2.6
Credit to equity for equity-settled share-based payments - - - - - 4.7 4.7 - 4.7
Tax effect of share options - - - - - 0.8 0.8 - 0.8
Balance at 31 March 2024 69.6 62.0 2.5 (13.9) (4.3) 211.3 327.2 8.4 335.6
Profit for the period - - - - - 47.9 47.9 1.1 49.0
Other comprehensive expense for the period - - (7.1) - (1.2) (8.3) (0.3) (8.6)
-
Total comprehensive income / (expense) for the period - - - (7.1) - 46.7 39.6 0.8 40.4
Share issue 0.9 9.6 - - - - 10.5 - 10.5
Own shares purchased in the period - - - - (10.1) - (10.1) - (10.1)
Own shares sold / (utilised) in the period - - - - 8.4 (8.4) - - -
Dividend paid - - - - - (9.9) (9.9) - (9.9)
Scrip dividend related share issue - - - - - 0.2 0.2 - 0.2
Credit to equity for equity-settled share-based payments - - - - - 3.6 3.6 - 3.6
Tax effect of share options - - - - - (0.1) (0.1) - (0.1)
Balance at 30 March 2025 70.5 71.6 2.5 (21.0) (6.0) 243.4 361.0 9.2 370.2
Consolidated Statement of Cash Flows
For the 52 weeks ended 30 March 2025 (52 weeks ended 31 March 2024)
Notes Restated(1)
2025
$'m 2024
$'m
Net cash generated from operating activities 7 77.3 75.6
Cash flow from investing activities
Interest received 0.8 1.8
Acquisition of businesses, net of cash acquired 13 - (134.3)
Deferred and contingent consideration for businesses acquired 13 (10.9) (2.2)
Proceeds on disposal of intangible assets, property, plant and equipment 0.8 0.4
Purchases of property, plant and equipment (42.9) (27.5)
Purchases of intangible assets (3.2) (4.1)
Purchase of shares in associate - (2.3)
Purchase of other investment (1.0) -
Dividend from associate 1.3 -
Proceeds from the repayment of preference shares - 0.9
Net cash used in investing activities (55.1) (167.3)
Cash flows before financing activities 22.2 (91.7)
Cash generated / (used) before adjusting items 27.6 (84.7)
Cash used in respect of adjusting items (5.4) (7.0)
Cash flow from financing activities
Dividend paid (9.7) (6.7)
Net purchase of shares for share schemes (11.0) (9.3)
Refinancing costs paid 8 (3.3) (0.3)
Proceeds of shares issued - 72.3
New bank loans raised 8 82.0 129.9
Repayment of borrowings 8 (63.9) (79.0)
Receipt from lease debtor - 0.2
Capital element of lease payments 8 (9.1) (8.9)
Net cash (used in) / generated from financing activities (15.0) 98.2
Net increase in cash and cash equivalents 7.2 6.5
Cash and cash equivalents at beginning of period 28.8 20.7
Effect of foreign exchange rate changes 0.4 1.6
Cash and cash equivalents at end of period 8 36.4 28.8
( )
(1) Restatement: The interest element of lease payments has been reclassified
in the prior period from financing to operating activities to reflect the
nature of the transactions.
1 Basis of preparation
The preliminary announcement for the 52 weeks ended 30 March 2025 has been
prepared in accordance with the accounting policies as disclosed in Volex
plc's Annual Report and Accounts 2024, as updated to take effect of any new
accounting standards applicable for the period as set out in Volex plc's
Interim Statement 2025.
The annual financial information presented in this preliminary announcement is
based on, and is consistent with, that in the Group's audited financial
statements for the 52 weeks ended 30 March 2025, and those financial
statements will be delivered to the Registrar of Companies following the
Company's Annual General Meeting. The Independent Auditors' Report on those
financial statements is unqualified and does not contain any statement under
section 498 (2) or 498 (3) of the Companies Act 2006.
Information in this preliminary announcement does not constitute statutory
accounts of the Group within the meaning of section 434 of the Companies Act
2006. The full financial statements for the Group for the 52 weeks ended 31
March 2024 have been delivered to the Registrar of Companies. The Independent
Auditors' Report on those financial statements was unqualified and did not
contain a statement under section 498 (2) or 498 (3) of the Companies Act
2006.
Going concern
The Group's financial statements have been prepared on the going concern
basis, which contemplates the continuity of normal business activity, with the
realisation of assets and the settlement of liabilities in the ordinary course
of business.
When assessing the Group's going concern status, the Directors have
specifically considered whether there are any material uncertainties that may
cast significant doubt on the Group's ability to continue as a going concern.
In making this assessment, the Directors have taken into account the Group's
financial position, including its significant balance of cash and cash
equivalents and access to a committed borrowing facility of $400 million,
which matures in June 2028. At 30 March 2025, the Group had undrawn committed
borrowing facilities available of $233.2m. The facility also includes an
additional $200 million uncommitted accordion and the option to extend for an
additional year. Under the terms of the facility, covenant leverage must
remain below 3.0x and interest cover must be in excess of 3.0x. The Directors
have reviewed the facility's terms, including covenant requirements and
remaining duration, and are satisfied with the Group's continued compliance
and significant headroom.
The Directors have prepared a cash flow forecast for the period ending
September 2026, which is based on the FY2026 Board-approved budget, which
reflects management's best estimate of expected trading conditions in light of
current circumstances. The Directors have performed sensitivity analysis on
the cash flow forecast using a base case and severe but plausible downside
scenario that take into account the principal risks and uncertainties set out
in the Annual Report, including potential tariff impact. This downside
scenario models a 15% reduction in year-on-year revenue, equivalent to the
worst result in the past 20 years, and demonstrates that the Group would still
maintain substantial covenant and liquidity headroom throughout the going
concern assessment period.
The Directors have also conducted a reverse stress test to assess the extent
of deterioration in trading conditions that would be required to breach the
Group's financial covenants or result in
1 Basis of preparation (continued)
insufficient liquidity headroom within the going concern assessment period.
This reverse stress test assumed the simultaneous occurrence of further
material adverse factors, including a revenue decline materially beyond
historical experience. The analysis indicates that a revenue reduction of 38%
below the FY2025 levels would be required to trigger interest cover covenant
non-compliance. Significant liquidity and covenant leverage headroom remained
even under the reverse stress test. The Directors consider such a scenario to
be severe and remote, given the Group's historical trading resilience, broad
customer base and the ability to take mitigating actions.
The Directors have also specifically considered the potential impact of
climate-related physical and transition risks as part of their assessment and
do not believe these risks will have a material impact within the going
concern period.
Based on their assessment and the sensitivity analyses, the Directors are
satisfied that there are no material uncertainties that may cast significant
doubt on the Group's ability to continue as a going concern. Therefore, the
Directors have a reasonable expectation that the Group has adequate resources
to continue in operational existence for at least twelve months from the date
of approval of the financial statements (the "foreseeable future").
Accordingly, the Directors consider it appropriate to adopt the going concern
basis of accounting in preparing the financial statements.
This preliminary announcement was approved by the Board of Directors on 25
June 2025.
2 Business and geographical segments
Operating segments
Segment information is based on the information provided to the chief
operating decision maker, being the Executive members of the Company's Board
and the Chief Operating Officer. This is the basis on which the Group reports
its primary segmental information for the period ended 30 March 2025.
The Group evaluates segmental information on the basis of profit or loss from
operations before adjusting items, share-based payments, interest and income
tax expense. The segmental results that are reported to the Executive members
of the Company's Board and Chief Operating Officer include items directly
attributable to a segment, as well as those that can be allocated on a
reasonable basis.
The internal reporting provided to the Executive members of the Company's
Board and the Chief Operating Officer for the purpose of resource allocation
and assessment of Group performance is based upon the regional performance of
where the customer is based and where the products are delivered. In addition
to the operating divisions, a Central division exists to capture all of the
corporate costs incurred in supporting the operations.
Unallocated central costs represent corporate costs that are not directly
attributable to the manufacture and sale of the Group's products but which
support the Group in its operations. Included within this division are the
costs incurred by the Executive management team and the corporate head office.
2 Business and geographical segments (continued)
The following is an analysis of the Group's revenues and results by reportable
segment:
52 weeks to 30 March 2025 52 weeks to 31 March 2024
North Europe Asia Unallocated Total North Europe Asia Unallocated Total
America $'m $'m Costs $'m America $'m $'m Costs $'m
$'m $'m $'m $'m
Revenue 503.5 412.6 170.4 - 1,086.5 372.3 355.4 185.1 - 912.8
Underlying operating profit / (loss) 51.9 45.5 20.9 (12.1) 106.2 32.8 52.9 13.9 (9.9) 89.7
Adjusting items (3.5) (10.4) (4.2) (0.2) (18.3) (2.8) (14.5) (0.2) (2.0) (19.5)
Share-based payment charge - - - (5.0) (5.0) - - - (6.3) (6.3)
Operating profit / (loss) 48.4 35.1 16.7 (17.3) 82.9 30.0 38.4 13.7 (18.2) 63.9
Share of net profit from associates 4.2 3.2
Finance income 0.7 1.3
Finance costs (23.5) (16.8)
Profit before taxation 64.3 51.6
Taxation (15.3) (11.4)
Profit after taxation 49.0 40.2
Charges for share-based payments and adjusting items have not been allocated
to regions as management report and analyse division profitability at the
level shown above. The accounting policies of the reportable segments are in
accordance with the Group's accounting policies.
Geographical information
The Group's revenue from external customers and information about its
non-current assets (excluding deferred tax assets) by geographical location
are provided below:
Revenue Non-Current Assets
2025 2024 2025 2024
$'m $'m $'m $'m
North America 503.5 372.3 71.3 53.0
Asia 170.4 185.1 76.4 72.3
Europe 412.6 355.4 272.6 270.0
1,086.5 912.8 420.3 395.3
3 Adjusting items and share-based payments
2025 2024
$'m $'m
Acquisition-related costs 0.4 3.8
Acquisition-related remuneration 1.0 1.6
Adjustment to fair value of contingent consideration 0.4 (1.3)
Cyber incident costs 0.1 2.0
Site closure costs 4.0 -
Measurement loss on assets held for sale 2.2 -
Amortisation of acquired intangibles 10.2 13.4
Total adjusting items 18.3 19.5
Share-based payments 5.0 6.3
Total adjusting items and share-based payments before tax 23.3 25.8
Tax effect of adjusting items and share-based payments (note 4) (4.1) (4.5)
Total adjusting items and share-based payments after tax 19.2 21.3
Adjusting items include costs that are one-off in nature and significant as
well as the non-cash amortisation of acquired intangible assets. The adjusting
items and share-based payments are included under the statutory classification
appropriate to their nature but are separately disclosed on the face of the
income statement to assist in understanding the underlying financial
performance of the Group.
Acquisition-related costs of $0.4m (2024: $3.8m) consist of legal and
professional fees relating to potential and completed acquisitions. The
acquisition-related costs in the prior period primarily related to the
acquisition of Murat Ticaret Kablo Sanayi A.Ş. ('Murat Ticaret') ($3.7m).
Acquisition-related remuneration consists of additional payments due in
relation to post-acquisition performance, to meet ongoing service conditions.
In the prior period, these payments were associated with the acquisitions of
RDS and Murat Ticaret, and in this period were associated with the acquisition
of Murat Ticaret only. The post-acquisition performance period for Murat
Ticaret ends in the subsequent period.
In the prior period, the adjustment to the fair value of contingent
consideration related to the final remeasurement of contingent consideration
on the acquisition of De-Ka Elektroteknik Sanayi ve Ticaret Anonim Şirketi
('DE-KA'). The adjustment in this period relates to the remeasurement of the
fair value of contingent consideration on the acquisition of Murat Ticaret.
In October 2023, the Group experienced a cyber incident. Costs associated with
the recovery and remediation of systems were $0.1m (2024: $2.0m).
Site closure costs relate to the strategic decision to close our site in
Shenzhen. Costs associated with the closure were $4.0m.
Associated with the acquisitions, the Group has recognised certain intangible
assets, including customer relationships and customer order backlogs. The
amortisation of these intangibles is non-cash and totals $10.2m (2024: $13.4m)
for the period. The decrease from the prior period is caused by previously
acquired customer relationships and customer order backlogs being fully
amortised during the period.
4 Taxation
2025 2024
Before Adjusting Total Before Adjusting Total
adjusting items and share-based payments $'m adjusting items and share-based payments $'m $'m
items $'m items
$'m $'m
Current tax - expense for the period (14.7) 1.7 (13.0) (18.3) 1.3 (17.0)
Current tax - adjustment in respect of previous periods (0.3) - (0.3) (0.1) - (0.1)
Total current tax expense (15.0) 1.7 (13.3) (18.4) 1.3 (17.1)
Deferred tax - (expense) / credit for the period (4.4) 2.4 (2.0) 2.5 3.2 5.7
Deferred tax - adjustment in respect of previous periods - - - - - -
Total deferred tax (expense) / credit (4.4) 2.4 (2.0) 2.5 3.2 5.7
Income tax expense (19.4) 4.1 (15.3) (15.9) 4.5 (11.4)
UK corporation tax is calculated at the standard rate of 25% (2024: 25%) of
the estimated assessable profit for the period. Taxation for other
jurisdictions is calculated at the rates prevailing in the respective
jurisdictions.
The Group's effective tax rate for the period of 23.8% (2024: 22.1%) is lower
(2024: lower) than the standard rate of corporation tax in the UK and can be
reconciled to the profit before tax per the income statement as follows:
2025 2024
Before Adjusting Total Before Adjusting Total
adjusting items and $'m adjusting items and $'m
share-based
items
items share-based
payments
$'m
$'m $'m payments
$'m
Profit before tax 87.6 (23.3) 64.3 77.4 (25.8) 51.6
Tax at the UK corporation tax rate (21.9) 5.8 (16.1) (19.4) 6.5 (12.9)
Tax effect of:
Expenses that are not deductible and income that is not taxable in determining (4.8) (1.2) (6.0) (1.7) (0.6) (2.3)
taxable profit
Incentives and reduced rate regimes 3.7 - 3.7 3.4 - 3.4
Foreign exchange and inflation on entities with different tax and functional 2.5 - 2.5 0.1 - 0.1
currencies
Adjustment in respect of previous periods (0.3) - (0.3) (0.1) - (0.1)
Changes to tax rates - - - (0.2) (1.2) (1.4)
Overseas tax rate changes 2.2 - 2.2 1.6 (0.2) 1.4
Current year tax losses and other items not recognised (0.7) - (0.7) (0.2) - (0.2)
Recognition of previously unrecognised deferred tax assets - 0.1 0.1 0.7 - 0.7
Derecognition of previously recognised deferred tax assets (0.1) (0.6) (0.7) (0.1) - (0.1)
Income tax expense (19.4) 4.1 (15.3) (15.9) 4.5 (11.4)
4 Taxation (continued)
Included in the non-deductible tax items is a net increase to the Group's
estimated exposure arising from uncertain tax positions of $1.5m (2024:
$0.7m), a net increase in the amount of deferred tax provided in respect of
the unremitted earnings of overseas subsidiaries of $1.2m (2024: decrease of
$0.1m) and $1.0m of state, local and withholding taxes (2024: $0.4m).
The benefits from incentives and reduced rate regimes primarily arise from
R&D, export and investment incentives.
The benefit relating to currency differences arose primarily in Türkiye where
the functional currency is euro, but income tax liabilities are required to be
calculated using Turkish lira books and records. The adverse effect of Turkish
lira depreciation on the income tax expense was outweighed by the favourable
impact of inflation adjustments for local tax purposes, as the rate of
inflation in Türkiye was higher than the rate of Turkish lira depreciation
during the year.
The income tax expense reported directly in equity of $0.1m (2024: credit of
$0.8m) relates to share-based payments and consists of a current tax credit of
$0.1m (2024: $0.7m) and a deferred tax expense of $0.2m (2024: credit of
$0.1m).
On 20 June 2023, Finance (No.2) Act 2023 was substantively enacted in the UK,
implementing the OECD's Pillar Two model rules and introducing a global
minimum effective tax rate of 15% for large groups for financial years
beginning on or after 31 December 2023. Taxation balances are adjusted for a
change in tax law if the change has been substantively enacted by the balance
sheet date, however the amendments to IAS 12 'Income Taxes' issued by the IASB
provide an exemption from the requirement to recognise and disclose deferred
taxes arising from enacted or substantively enacted tax law relating to Pillar
Two taxes.
Based on an analysis of the current year financial data, all territories in
which the Group operates are expected to qualify for one of the safe harbour
exemptions such that no top-up taxes should arise for the current year. In
future years, particularly after the end of the three-year transitional safe
harbour period, there is the potential for Pillar Two taxes to apply in a
small number of jurisdictions, but these are not expected to be material. The
Group continues to refine this assessment and analyse the future consequences
of these rules which are still developing globally.
5 Earnings per ordinary share
The calculations of the basic and diluted earnings per share are based on the
following data:
2025 2024
$'m $'m
Profit for the purpose of basic and diluted earnings per share being net 47.9 39.3
profit attributable to owners of the parent
Adjustments for:
Adjusting items 18.3 19.5
Share-based payments charge 5.0 6.3
Tax effect of adjusting items and share-based payments (4.1) (4.5)
Underlying earnings 67.1 60.6
No. shares No. shares
Weighted average number of ordinary shares for the purpose of basic earnings 185,037,997 179,909,482
per share
Effect of dilutive potential ordinary shares / share options 2,384,858 3,421,442
Weighted average number of ordinary shares for the purpose of diluted earnings 187,422,855 183,330,924
per share
2025 2024
Basic earnings per share Cents Cents
Basic earnings per share 25.9 21.8
Adjustments for:
Adjusting items 9.9 10.9
Share-based payments charge 2.7 3.5
Tax effect of adjusting items and share-based payments (2.2) (2.5)
Underlying basic earnings per share 36.3 33.7
2025 2024
Diluted earnings per share Cents Cents
Diluted earnings per share 25.6 21.4
Adjustments for:
Adjusting items 9.7 10.6
Share-based payments charge 2.7 3.4
Tax effect of adjusting items and share-based payments (2.2) (2.4)
Underlying diluted earnings per share 35.8 33.0
The underlying earnings per share has been calculated on the basis of profit
before adjusting items and share-based payments, net of tax. The Directors
consider that this calculation gives a better understanding of the Group's
earnings per share in the current and prior periods.
6 Bank facilities
The Group has a $400m committed facility (the 'facility') together with an
additional $200m uncommitted accordion (the 'accordion'). This financing
arrangement is supported by a consortium that comprises HSBC Bank plc,
Citibank, N.A. Jersey branch, Barclays Bank PLC, Fifth Third Bank, National
Association, UniCredit Bank AG, London branch, JPMorgan Chase Bank N.A, London
branch, Banco Bilbao Vizcaya Argentaria, S.A. London branch and Northern Bank
Ltd. The key terms of the facility are:
• Available until June 2028 with the option to
extend for one further year;
• No scheduled amortisation or security; and
• Interest cover and net debt to underlying EBITDA
leverage covenants.
The accordion feature provides further capacity for potential future
acquisitions. The facility is unsecured.
The terms of the facility require the Group to perform quarterly financial
covenant calculations with respect to leverage (adjusted total debt to
adjusted rolling 12-month EBITDA) and interest cover (adjusted rolling
12-month EBITDA to adjusted rolling 12-month interest). A breach of these
covenants could result in cancellation of the facility. The Group was
compliant with these covenants during the period and remains compliant in the
period subsequent to the period end.
7 Notes to statement of cash flows
Restated(1)
2025 2024
$'m $'m
Profit for the period 49.0 40.2
Adjustments for:
Finance income (0.7) (1.3)
Finance costs 23.5 16.8
Income tax expense (note 4) 15.3 11.4
Share of net profit from associates (4.2) (3.2)
Depreciation of property, plant and equipment (note 10) 15.6 12.3
Depreciation of right-of-use assets (note 10) 9.7 7.4
Amortisation of intangible assets 13.4 15.6
Measurement loss on assets held for sale 2.2 -
Share-based payment charge 5.0 6.3
Contingent consideration adjustments (note 3) 0.4 (1.3)
Increase / (decrease) in provisions 0.2 (1.5)
Operating cash flow before movement in working capital 129.4 102.7
Increase in inventories (24.2) (5.6)
Increase in receivables (19.8) (17.4)
Increase in payables 25.9 24.9
Movement in working capital 18.1 1.9
Cash generated from operations 111.3 104.6
Cash generated from operations before adjusting items 116.7 111.6
Cash used by adjusting operating items (5.4) (7.0)
Taxation paid (15.8) (14.9)
Interest paid (14.2) (11.4)
Interest element of lease payments (4.0) (2.7)
Net cash generated from operating activities 77.3 75.6
Analysis of cash and cash equivalents: 2025 2024
$'m $'m
Cash and bank balances 37.7 29.8
Bank overdrafts (1.3) (1.0)
36.4 28.8
(1)( ) Restatement: The interest element of lease payments has been
reclassified in the prior period from financing to operating activities to
reflect the nature of the transactions and maintain consistency with interest
paid.
8 Analysis of net debt
Cash and cash equivalents Bank Lease Debt issue Total
$'m
$'m loans liabilities costs
$'m
$'m
$'m
At 2 April 2023 20.7 (91.5) (34.8) 1.9 (103.7)
Business combination (note 13) 15.8 (4.1) (6.6) - 5.1
Cash flow (9.3) (50.9) 11.6 0.3 (48.3)
New leases and remeasurements - - (5.1) - (5.1)
Interest - (0.2) (2.7) - (2.9)
Exchange differences 1.6 (0.2) 0.2 - 1.6
Amortisation of debt issue costs - - - (0.7) (0.7)
At 31 March 2024 28.8 (146.9) (37.4) 1.5 (154.0)
Cash flow 7.2 (18.1) 13.1 3.3 5.5
New leases and remeasurements - - (22.8) - (22.8)
Interest - (0.3) (4.0) - (4.3)
Transferred to liabilities held for sale - - 2.2 - 2.2
Exchange differences 0.4 0.4 (0.1) - 0.7
Amortisation of debt issue costs - - - (2.1) (2.1)
At 30 March 2025 36.4 (164.9) (49.0) 2.7 (174.8)
Debt issue costs relate to bank facility arrangement fees. In June 2024, the
Group entered into a new banking facility, increasing the facility to $400m.
Debt issue costs of $3.3m primarily relate to the capitalisation of bank
facility arrangement fees. The refinancing resulted in a write-off of $1.3m.
During the prior period, the Group extended the facility from $200m to $240m
and the $0.3m of costs associated with the extension request were capitalised.
New leases entered into during the period primarily relate to expansions and
renewals of factory leases across multiple sites ($22.0m), including a lease
on a new site in Mexico ($12.6m) and the renewal of a site in North America
($4.3m).
9 Provisions
Property Warranty, recall and legal Total
$'m $'m $'m
At 2 April 2023 0.4 0.9 1.3
Additional provisions in the period 0.2 - 0.2
Amounts acquired on business combination 0.5 1.9 2.4
At 31 March 2024 1.1 2.8 3.9
Current liabilities 0.1 2.8 2.9
Non-current liabilities 1.0 - 1.0
Additional provisions in the period - 2.2 2.2
Utilisation of provision - (0.1) (0.1)
At 30 March 2025 1.1 4.9 6.0
Current liabilities - 4.9 4.9
Non-current liabilities 1.1 - 1.1
Property
The Group has dilapidations provisions at a number of its manufacturing and
office sites. During the prior period, as part of the acquisition of Murat
Ticaret, the Group recognised a dilapidations provision of $0.5m associated
with the acquired manufacturing sites.
Warranty, recall and legal
The warranty, recall and legal provisions includes potential costs of recall,
warranty and legal provisions arising across the Group. These provisions
include the Directors' best estimates, based upon past experience, of the
Group's liability under specific product warranties and legal claims, as well
as a provision of $1.0m (2024: $1.0m) to cover potential costs of recall or
warranty claims for products which are in the field, but where a specific
issue has not yet been reported. The timing of the cash outflows with respect
to these legal claims is uncertain. During the prior period, the Group
recognised a $1.9m liability associated with employment and other claims
related to the acquisition of Murat Ticaret.
10 Reconciliation of operating profit to underlying EBITDA (earnings before interest, tax, depreciation, amortisation, adjusting items and share-based payments)
2025 2024
$'m $'m
Operating profit 82.9 63.9
Add back:
Adjusting items 18.3 19.5
Share-based payment charge 5.0 6.3
Underlying operating profit 106.2 89.7
Depreciation of property, plant and equipment 15.6 12.3
Depreciation of right-of-use assets 9.7 7.4
Amortisation of intangible assets not acquired in a business combination 3.2 2.2
Underlying EBITDA 134.7 111.6
11 Share capital
Ordinary shares of £0.25 each Number Par Share Total
Value Premium $'m
$'m $'m
Allotted, called up and fully paid:
At 2 April 2023 159,107,085 62.7 60.7 123.4
Issue of new shares - scrip dividend(1) 692,267 0.2 (0.2) -
Equity raise 21,818,181 6.7 1.5 8.2
At 31 March 2024 181,617,533 69.6 62.0 131.6
Issue of new shares - scrip dividend(1) 33,575 - - -
Issue of new shares - Contingent consideration 2,878,830 0.9 9.6 10.5
At 30 March 2025 184,529,938 70.5 71.6 142.1
(1)Shareholders were able to elect to receive ordinary shares in place of the
final dividend of 2.8p per ordinary share (in relation to year ended 31 March
2024) and the interim dividend of 1.5p (in relation to the current year) under
the terms of the Company's scrip dividend scheme. This resulted in the issue
of 33,575 and nil new fully paid ordinary shares respectively (2024: 478,491
and 213,776 respectively).
On 8 January 2025, 2,878,830 shares were issued to the former owners of Murat
Ticaret as part of the first year earn-out payment.
On 22 June 2023, the Group completed an equity raise to raise finances for the
completion of the acquisition of Murat Ticaret. The Group issued 21,818,181
new ordinary shares of 25 pence each, comprising the 'Placing Shares' and the
'Retail Offer Shares' (together, the 'equity raise'). The shares were issued
at a price of 275 pence per share, representing a discount of 3.8% to the
closing share price of 286 pence per share on 21 June 2023. In aggregate, the
equity raise represented gross proceeds of £60.0m ($74.0m) and net proceeds
of £58.6m ($72.3m).
12 Own shares and non-distributable reserves
Own shares 2025 2024
$'m $'m
At the beginning of the period 4.3 1.0
Purchase of shares 10.1 9.1
Sale of shares (8.4) (5.8)
At end of the period 6.0 4.3
At 30 March 2025, the number of ordinary shares held in Trust was 1,555,157
(2024: 1,047,529). During the period, the Group established a new employee
benefit trust, named the Volex Employee Benefit Trust. Following this, the
Volex Group plc Employees' Share Trust was closed after its remaining shares
were fully utilised.
The market value of the shares as at 30 March 2025 was $5.2m (2024: $3.8m).
The Trust has waived any entitlement to the receipt of dividends in respect of
its holding of the Company's ordinary shares.
During the period, 2,028,057 (2024: 1,524,813) shares were utilised on the
exercise of share awards. During the period, the Company purchased 2,535,685
shares (2024: 2,338,364) at a cost of $10.1m (2024: $9.1m).
In December 2013, The Volex Group plc Employees' Share Trust sold 3,378,582
shares at £1.16 per share to the open market. The average price of shares
held by the Trust at the time was £0.70 with a number of the shares having
been issued by Volex plc to the Trust at nominal value. In accordance with the
Accounting Standards, the difference between the sales price of £1.16 and the
average share price of £0.70 was recorded as a non-distributable reserve,
giving rise to the $2.5m non-distributable reserve balance.
13 Business combinations
Acquisitions in the period ended 30 March 2025
During the period, the Group did not complete any acquisitions.
Acquisitions in the period ended 31 March 2024
There have been no changes to the provisional fair values of the assets and liabilities acquired in the prior year.
Net cash outflows in respect of acquisitions comprises:
2025 2024
Net cash outflow on acquisitions $'m $'m
Cash consideration
- Murat Ticaret - 150.1
Total cash consideration - 150.1
Less: cash and cash equivalents acquired
- Murat Ticaret - (15.8)
Net cash outflow - 134.3
Payment of deferred and contingent consideration
- Murat Ticaret - deferred consideration 0.5 -
- Murat Ticaret - contingent consideration 10.4 -
- DE-KA - 2.2
Net cash outflow 10.9 136.5
14 Events after the balance sheet date
On the 2 April 2025, the Group contributed certain trade and assets of
Terminal & Cable ('TC'), its Canadian wire harness manufacturer focusing
on the Off-Highway end-market, into a newly incorporated partnership. The
partnership is 51% controlled by a local partner who is contributing cash into
the entity. The Group retains a 49% interest in the new venture. Following the
transaction, the entity will be accounted for as an investment in associate.
In accordance with IFRS 5 'Non-current Assets Held for Sale and Discontinued
Operations' the Group has transferred the relevant assets ($4.3m) and
liabilities ($2.9m) into held for sale. As the carrying value of assets held
for sale exceeded the fair value less costs to sell, a measurement loss of
$2.2m has been recognised within adjusting items.
On the 11 April 2025, the Group exercised its option to acquire two properties
in Türkiye. The options were granted as part of the original acquisition of
De-Ka Elektroteknik Sanayi ve Ticaret Anonim Şirketi ('DE-KA'). The
properties were acquired through the purchase of an entity, Networks Is
Gelistirme Ve Ticaret Anonim Sirketi. In accordance with IFRS 16 'Leases', the
acquisition payment of $12.4m was included as a lease liability as at the
balance sheet date.
15 Alternative performance measures
The Group makes use of underlying and other alternative performance measures
in addition to the measures set out in International Financial Reporting
Standards.
Underlying operating profit and underlying EBITDA
Underlying operating profit is defined as operating profit excluding adjusting
items and share-based payments. Underlying EBITDA is defined as underlying
operating profit adjusted for depreciation and amortisation. The Group uses
underlying operating profit and underlying EBITDA to present meaningful
year-on-year comparisons. The reconciliation between operating profit and
underlying operating profit and underlying EBITDA is presented in note 10.
Underlying basic earnings per share and underlying diluted earnings per share
Underlying basic earnings per share is defined by the profit attributable to
the owners of the parent company, excluding adjusting items, divided by the
weighted average number of shares in issue during the period. Underlying
diluted earnings per share adjusts the basic earnings per share by the effect
of dilutive potential share options as at the period end date. Both metrics
are reconciled to statutory measures in note 5.
Organic growth
The Group has been acquisitive in recent years, having acquired 12 businesses,
and generates revenue in a number of currencies. Therefore, management use
organic revenue growth so that meaningful year-on-year comparisons can be
made.
Organic revenue growth is calculated using constant exchange rates by taking
the total reported revenue (excluding the impact of acquisitions and
divestments) divided by the preceding financial year's revenue at the current
year's exchange rates.
Electric Vehicles Consumer Electricals Medical Complex Industrial Technology Off-Highway Total
$'m $'m $'m $'m $'m $'m
Revenue
2024 revenue 123.7 235.3 177.5 213.4 162.9 912.8
FX impact (0.4) (0.9) (0.8) - (9.0) (11.1)
2024 revenue at 2025 FX rates 123.3 234.4 176.7 213.4 153.9 901.7
Organic growth 49.6 22.6 (8.7) 31.0 5.5 100.0
Organic growth % 40.2% 9.6% (4.9%) 14.5% 3.6% 11.1%
Acquisitions - - - - 84.8 84.8
2025 revenue 172.9 257.0 168.0 244.4 244.2 1,086.5
15 Alternative performance measures (continued)
Leverage and interest cover covenants
The Group has a $400m committed facility together with an additional $200m
uncommitted accordion.
The terms of the facility require the Group to perform quarterly financial
covenant calculations with respect to leverage (net debt (before operating
leases) to covenant EBITDA) and interest cover (covenant EBITDA to covenant
interest). Breach of these covenants could result in cancellation of the
facility. Net debt (before operating leases) in the financial statements is
defined as net debt excluding lease liabilities but including pre-IFRS 16
finance leases. Covenant EBITDA is defined as underlying EBITDA adjusted for
depreciation of right-of-use assets.
Note 2025 2024
$'m $'m
Net debt 8 (174.8) (154.0)
Lease liabilities 8 49.0 37.4
Finance leases (1.6) (4.5)
Net debt (before operating lease liabilities) (127.4) (121.1)
Underlying EBITDA 10 134.7 111.6
Depreciation of right-of-use assets 10 (9.7) (7.4)
Prorated acquired EBITDA - 15.5
Covenant EBITDA 125.0 119.7
Interest on bank overdrafts and loans 14.2 11.2
Interest on finance leases 0.3 0.4
Covenant interest 14.5 11.6
Covenant leverage 1.0x 1.0x
Covenant interest cover 8.6 10.3
Free cash flow and underlying free cash flow
Free cash flow and underlying free cash flow are used where they allow for
year-on-year comparisons to be made by excluding cost of acquisitions and
adjusting items which vary year-to-year.
Free cash flow is defined as the net cash flow before financing activities
excluding the net outflow from the acquisition of subsidiaries and associates
and the interest element of lease payments
Underlying free cash flow is the net cash before financing activities and
excluding costs of acquisitions, the interest element of lease payments,
adjusting items and share-based payments.
15 Alternative performance measures (continued)
Note 2025 2024
$'m $'m
Cash flow before financing activities 22.2 (91.7)
Less: Interest element of lease payments 4.0 2.7
Less: Acquisition of businesses, net of cash acquired 13 - 134.3
Less: Contingent consideration for businesses acquired 13 10.9 2.2
Less: Purchase of other investment 1.0 -
Less: Purchase of shares in associate - 2.3
Less: Dividend from associate (1.3) -
Free cash flow 36.8 49.8
Less: Cash utilised in respect of adjusting items 5.4 7.0
Underlying free cash flow 42.2 56.8
Cash conversion
Cash conversion is defined as cash generated from operations before adjusting
operating items, less net capital expenditure, as a percentage of underlying
operating profit.
Note 2025 2024
$'m $'m
Cash generated from operations before adjusting operating items 116.7 111.6
7
Proceeds on disposal of intangible assets, property, plant and equipment 0.8 0.4
Purchase of property, plant and equipment (42.9) (27.5)
Purchase of intangible assets (3.2) (4.1)
71.4 80.4
Underlying operating profit 106.2 89.7
Cash conversion 67.2% 89.6%
Return on Capital Employed ('ROCE')
The Return on Capital Employed is used as a measure of return on the equity
asset base as the Group continues to grow.
The ROCE is calculated as the underlying operating profit as a percentage of
the average net assets excluding net cash / debt over the period.
Note 2025 2024
$'m $'m
Average net assets 349.4 310.0
Less: Average net cash/(debt) (189.9) (122.5)
Capital employed 539.3 432.5
Underlying operating profit 106.2 89.7
Return on capital employed 19.7% 20.7%
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