16 October 2024
Volex plc
("Volex", the
"Company", or the "Group")
Half Year Trading Update
Volex (AIM: VLX), the specialist integrated
manufacturer of critical power and data transmission products,
today releases a trading update for the 26 weeks ended 29 September
2024.
Strong
momentum sustained through the first half; full year expectations
unchanged
The Group's financial performance in the first
half of the year was in line with expectations, with revenues in
excess of $510 million. This performance demonstrates the continued
resilience of the Company based on strong relationships with
blue-chip customers across our five end-market sectors.
Constant currency organic revenue growth for
the first half of the year was 9.7%, including a substantial
increase in Electric Vehicle revenues and a return to revenue
growth in Consumer Electricals. As guided at the full year results,
Medical revenues were slightly lower against a strong prior year
comparative which benefitted from a catch up in the post-Covid
supply chain. Complex Industrial Technology delivered good growth
with a strong increase in high speed data-centre products
offsetting softer demand from industrial customers. Off-Highway
also experienced good growth across a broad customer
base.
Margin
resilience supports continued investment in
growth
The Group expects to deliver operating profit
margins for the first half consistent with the Board's
through-cycle target of 9-10%, despite the recent inflationary cost
pressures in Turkey. This strong performance provides the Group
with confidence to continue investing in capacity and capability
growth as outlined at the full year results. In addition,
productivity improvement activities are being accelerated as part
of our Murat Ticaret integration programme, resulting in an offset
of localised labour cost pressures.
Outlook
Volex delivered strong growth in the first half
of the year, despite a challenging macroeconomic background. This
is a testament to the Group's strong positioning in specialist
markets delivering critical connectivity for customers. The
Group is benefitting from a diversification strategy targeting
structural growth markets and leveraging strong customer
relationships, and is well positioned to continue the current
momentum through the second half of the year, with full year
expectations unchanged.
Half year
results
The Group expects to release its interim
results on 15 November 2024.
-ENDS-
For further information please
contact:
Volex
plc
+44 1256 442570
Nat Rothschild, Executive
Chairman
investor.relations@volex.com
Jon Boaden, Chief Financial
Officer
Peel Hunt LLP
- Nominated Adviser & Joint
Broker
+44 20 7418 8900
Ed Allsopp
Dom Convey
Tom Graham
HSBC Bank plc - Joint
Broker
+44 20 7991 8888
Simon Alexander
Joe Weaving
Stephanie Cornish
Sodali & Co - Media
Enquiries
+44 20 7250 1446
James White
Nicholas Johnson
About Volex plc
Volex plc (AIM:VLX) is a driving
force in integrated manufacturing for mission-critical applications
and a global leader in power and data connectivity solutions. Our
diverse operations support international blue-chip customers in
five key sectors: Electric Vehicles, Consumer Electricals, Medical,
Complex Industrial Technology and Off-Highway. Headquartered in the
UK, we orchestrate operations across 28 advanced manufacturing
facilities, uniting 14,000 dynamic individuals from 25 different
nations. Our extraordinary products find their way to market
through our localised sales teams and authorised distributor
partners, supporting Original Equipment Manufacturers and
Electronic Manufacturing Services companies across the globe. In a
world that grows more digitally complex by the day, customers trust
us to deliver power and connectivity that drives everything from
household essentials to life-saving medical equipment. Learn more
at www.volex.com.