REG - Volex PLC - Trading update and Notice of Capital Markets Event

VolexAnnouncement

Today 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260325:nRSY9748Xa&default-theme=true

RNS Number : 9748X  Volex PLC  25 March 2026

 

 

25 March 2026

Volex plc

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

 

Trading update and Notice of Capital Markets Event

Strong ongoing performance drives upgraded expectations for FY2026

 

Volex plc (AIM: VLX), the specialist integrated manufacturer of critical power
and data transmission products, is pleased to announce a trading update for
the year ending 31 March 2026.

 

Separately, the Company today announces that the Board is considering moving
the Company's listing venue to the Main Market of the London Stock Exchange.
Volex will also host a Capital Markets Event for institutional investors and
analysts on Wednesday 22 April 2026.

 

Continued outperformance driven by strong data centre product demand

 

The Group has continued to trade well through the second half of FY2026, with
full year results now expected to be significantly ahead of current market
expectations(1).

 

The Board now expects Group revenue for FY2026 to be at least $1,220 million.
Underlying operating(2) margins are expected to be slightly above the top end
of the Group's 9-10% target range, reflecting both operating leverage from
higher revenues and a continued focus on operational efficiency.

 

The outperformance has been driven primarily by the Group's Complex Industrial
Technology division with continued high demand for the Group's high-speed data
transmission products driven by data-intensive artificial intelligence
applications. As a result, full year data centre revenues are now expected to
be approximately double the $118 million achieved in the prior year.

 

This performance includes a contribution from the fulfilment of accelerated
customer requirements, where the Group has been able to respond rapidly to
customers' near-term capacity needs in situations where other suppliers have
not been able to meet those needs. This reflects the benefits of Volex's
global footprint and scale, which enable us to provide responsive, localised
service wherever our customers need it. The Board is encouraged by the
strength of the Group's positioning in this market, although this particular
dynamic may not recur at the same level in FY2027.

 

The Group's other end markets, Electric Vehicles, Consumer Electricals and
Medical, the other elements of Complex Industrial Technology and Off-Highway,
have each traded broadly in line with the first half of the year, delivering
robust contribution and underpinning the Group's diversified revenue base.

 

The Group has limited direct exposure to the markets most immediately affected
by the current geopolitical uncertainty in the Middle East. While the
situation remains fluid, and the broader macroeconomic implications are
difficult to predict, the Board does not currently anticipate a material
impact on the Group's operations or near-term outlook given the diversity of
the Group's end markets and geographic configuration.

 

Capital markets event to outline new medium-term growth plans

 

Volex will host a Capital Markets Event for institutional investors and
analysts at 14.00 on Wednesday 22 April 2026, at the offices of Peel Hunt LLP,
100 Liverpool Street, London, EC2M 2AT.

 

The event will be hosted by Dave Webster, Chair, Nat Rothschild, Chief
Executive Officer, Jon Boaden, Chief Financial Officer and John Molloy, Group
Chief Operating Officer, alongside other members of the senior management
team. The Capital Markets Event will set out the Company's new medium-term
growth targets and the key structural drivers underpinning the Board's
confidence in achieving them.

 

Institutional investors who are interested in attending in person should
contact Sodali at Volex@sodali.com (mailto:Volex@sodali.com) .

 

Consideration of move from AIM to the Main Market

 

Volex joined AIM in 2018 and since that time, the Company has grown materially
in respect of revenues, profitability and market capitalisation. The Group is
now a leading global provider of high-quality, diverse power and data
connectivity solutions with a unique global footprint spanning 25 countries
and over 13,000 employees.

 

In conjunction with the expectation of being eligible for inclusion in the
FTSE250 Index, the Board of Directors of Volex (the "Board") believes that a
move to the Main Market would facilitate access to deeper pools of capital and
a broader range of investors, supporting increased liquidity in trading of the
Group's shares.

 

The Board also believes that a Main Market listing would increase the
corporate profile of the Company and enhance its reputation with a larger and
more global customer base.

 

An update will be provided following consultation with the Company's largest
shareholders.

 

Nat Rothschild, Chief Executive Officer of Volex, commented:

 

"Our performance during the period is testament to the exceptional business we
have built and the acceleration in our Data Centre business this year is a
direct consequence of the strategic investments we have made in engineering
capability, manufacturing capacity and our ability to respond to rapidly
evolving customer requirements.

 

"With revenue now expected to exceed $1.2 billion and margins above the top
end of our target range of 9-10%, the scale and quality of our business has
never been stronger. The Board believes the Group has reached a level of
scale, profitability and international breadth where it is right to consider a
listing on the Main Market of the London Stock Exchange. As such, we will be
consulting our largest shareholders to understand their views on this matter.

 

"At our Capital Markets Day on 22 April, we will set out our plans for the
next phase of our value creation journey, including the medium-term strategic
ambitions and financial objectives that will shape our journey over the coming
years. We look forward to sharing our plans for the next phase of Volex's
growth with the market."

 

-ENDS-

 

(1)As at 23 March 2026, the average of company compiled analysts' forecasts
for the year ending 31 March 2026 for revenue is $1,173.0 million with a range
of $1,149.3 million to $1,192.2 million, the average for underlying operating
profit is $114.8 million, with a range of $111.5 million to $117.0 million.

(2)Underlying operating profit is before adjusting items which are one-off in
nature and significant (such as restructuring costs, impairment charges or
acquisition-related costs), the amortisation and impairment of acquired
intangible assets and share-based payment charges. This trading update is
based upon unaudited management accounts information. Forward-looking
statements have been made by the Directors in good faith using information
available up until the date that they approved this statement. Forward-looking
statements should be regarded with caution because of the inherent
uncertainties in economic trends and business risks.

 

Certain information contained in this announcement would have constituted
inside information (as defined by Article 7 of Regulation (EU) No 596/2014),
as it forms part of domestic law by virtue of the European Union (Withdrawal)
Act 2018) ("MAR") prior to its release as part of this announcement and is
disclosed in accordance with the Company's obligations under Article 17 of
those Regulations.

 

For further information please contact:

 

 Volex plc                                                                    +44 (0) 1256 442570
 Nat Rothschild, Chief Executive Officer                                      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
 Charlotte Sutcliffe
 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 23 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.

 

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

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



            Copyright 2019 Regulatory News Service, all rights reserved