(Alliance News) - Volex PLC shares rose on Thursday, after it said it expects its annual performance to be ahead of market expectations.
Volex is a Basingstoke, England-based specialist integrated manufacturer of critical power and data transmission products. Its shares were up 6.0% to 305.39 pence each in London on Thursday morning.
For the financial year ended March 31, revenue is now expected to be at least USD900 million, an increase of 25% over USD722.8 million the prior year.
Further, underlying operating profit is now expected to be "slightly" ahead of analyst expectations, citing USD84.2 million. In financial 2023, Volex reported an underlying operating profit of USD67.3 million.
"This performance underscores Volex's ability to secure additional customer commitments and deliver new projects, whilst maintaining robust financial and operational discipline," Volex said.
It added that operating profit margins improved in the second half of the year. Volex said that this was partly a result of product mix, including the contribution of Off-Highway sales, offset by accelerating investment in future strategic growth initiatives to support increased, long-term customer demand.
Executive Chair Nat Rothschild said: "Our ability to continue to deliver strong growth in challenging markets is a testament to the quality of the team, our strategy and our ability to respond to the needs of our customers. We enter the new financial year with confidence and optimism thanks to the strong momentum generated in the current financial year, improving market conditions in the Electric Vehicles and Consumer Electricals sectors, as well as an abundance of opportunities in the new Off-Highway sector."
Volex is scheduled to publish its annual results in late June.
By Sophie Rose, Alliance News senior reporter
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Volex (VLX)