(Alliance News) - The chair of cable assembly maker Volex PLC said Tuesday first quarter trading has been "strong" with revenue growing and profit margins ahead of expectations.
Speaking at the annual general meeting of the firm, Executive Chair Nat Rothschild reported revenue had grown 12% on the year prior on a reported basis, and was up 14% at constant currency.
Meanwhile, operating profit margins were "ahead of current expectations" after the firm had focused on improving profitability from its core business as well as the successfully integration of recent acquisitions.
"Our global footprint allows us to mitigate the effect of US tariffs on Chinese manufactured goods as we move production of certain products from China to other locations such as Vietnam and Indonesia," Rothschild said.
"We have secured a number of new major contract wins in our PVC power business as our strategy to invest in automation, vertical integration and standardised products improves our competitiveness in the market."
Volex will propose a 1.0 pence per share interim dividend, after not paying an interim dividend the year prior. This will be announced at its half year results in November.
"Volex is well positioned to make further progress this year and the board remains confident about the group's outlook", Rothschild added.
Shares in Volex were 4.6% higher at 90.30 pence in London on Tuesday.
Volex (VLX)