Volex PLC AGM Statement and Trading Update (2994W)
31 July 2018 - 8:00PM
UK Regulatory
TIDMVLX
RNS Number : 2994W
Volex PLC
31 July 2018
31 July 2018
Volex plc
AGM and Trading Update
Volex plc ("Volex"), one of the world's largest manufacturers of
premium power cord and harness assemblies, is today holding its
Annual General Meeting during which the Chairman will make the
following statement on trading for the three months ended June
2018:
"I am pleased to report that trading for the first quarter has
been ahead of our expectations. Profitability has improved in the
first quarter of FY2019 versus the prior year, as we enjoyed higher
revenues and lower operating expenses as a result of continued cost
reduction initiatives.
Our revenue has increased across all of our major geographies in
the first quarter. We are seeing growth from both our established
customers and building on our successes in winning new customers.
We continue to diversify and reduce the concentration risk in our
revenue stream, and have seen revenue growth, on a like for like
organic basis, in excess of 7 per cent in the first quarter of
FY2019.
The cost pressure that we were experiencing in the second half
of last year has lessened, with the price of copper reducing and
the dollar strengthening against our main functional
currencies.
We continue to assess the ramifications of a possible trade war
between the US and China. We have yet to see an adverse affect on
our business, or that of our major customers, but continue to
monitor this situation closely. One of Volex's strengths is our
global footprint as well as the ability to manufacture and deliver
a variety of products from our "hybrid" facilities.
We have made good progress in integrating the two recent
acquisitions, MC Electronics and Silcotec Europe. The culture of
both companies fits well with our own culture and we expect to see
growth from both operations in FY2019.
We continue to review and optimise our footprint in order to
position Volex for the future. In the first quarter we have taken
steps to reduce capacity in our Shenzhen power cord factory and
began the process to reduce our presence in India. Both these
actions will result in exceptional charges, which will be recovered
within the financial year through on-going cost savings and supply
chain optimization initiatives. I am therefore confident in Volex's
ability to continue to make revenue progress and deliver further
value to our shareholders over the coming year.
Finally, I would like to thank our employees across the globe
for their dedication, commitment and hard work, as we improve our
competitiveness and profitability. Volex has a strong balance sheet
and is starting to grow once again, and I look forward to the
coming year with confidence."
For further information please contact:
Volex plc
Nat Rothschild, Executive Chairman +65 6788 7833
Daren Morris, Group Chief Financial Officer +44 7909 995887
Liberum, Nominated Adviser & Broker +44 203 100 2000
Steve Pearce & Euan Brown
Market abuse regulation
This announcement is released by Volex plc and contains inside
information for the purposes of Article 7 of the Market Abuse
Regulation (EU) 596/2014 (MAR), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR. For the purposes
of MAR and Article 2 of Commission Implementing Regulation (EU)
2016/1055, this announcement is being made on behalf of the Company
by Daren Morris, CFO.
Forward looking statements
Certain statements in this announcement are forward-looking
statements which are based on Volex's expectations, intentions and
projections regarding its future operating performance and
objectives, anticipated events or trends and other matters that are
not historical facts. Forward-looking statements are sometimes, but
not always, identified by their use of a date in the future or such
words as 'anticipates', 'aims', 'could', 'may', 'should',
'expects', 'believes', 'intends', 'plans', 'targets', 'goal' or
'estimates'. By their very nature forward-looking statements are
inherently unpredictable, speculative and involve risk and
uncertainty because they relate to events and depend on
circumstances that will occur in the future. There are a number of
factors that could cause actual results and developments to differ
materially from those expressed or implied by these forward-looking
statements. Factors that could cause or contribute to such
differences include, by way of example only and not limited to,
general economic conditions, currency fluctuations, competitive
factors, the loss of one of our major customers, failure of one or
more major suppliers and changes in raw materials or labour costs
among other risks. Given these risks and uncertainties, prospective
investors are cautioned not to place undue reliance on
forward-looking statements. Forward-looking statements speak only
as of the date of such statements and, except as required by
applicable law, Volex undertakes no obligation to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.
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 or visit www.rns.com.
END
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