(Alliance News) - Volex PLC on Thursday said profit rose in the first half, boosted by strong revenue growth, leaving the company confident it can meet full-year targets and beyond.
In the six months that ended October 1, the Basingstoke, England-based specialist integrated manufacturer of critical power and data transmission products said pretax profit rose 2.3% to USD22.0 million from USD21.5 million.
Revenue rose 11% to USD397.5 million from USD357.5 million. On a constant-currency organic basis, revenue was up 4.2%.
The improvement in pretax profit trailed the revenue rise due to USD11.6 million in adjusting items and share-based payments, up from USD7.6 million a year before, and USD5.7 million in finance costs, up USD3.8 million.
Underlying operating profit rose by 17% to USD37.4 million from USD32.1 million.
This prompted to raise its interim dividend by 7.7% to 1.4 pence from 1.3p a year earlier.
Looking ahead, Volex said it remains confident in achieving long-term objectives and to meet full-year market expectations.
"Our business is in exceptional shape, demonstrating resilience and diversity in its operations. We employ a management model that is working effectively, and enables us to pursue sustainable growth whilst maintaining margins," said Executive Chair Nat Rothschild.
"In parallel, our commitment to supporting customers remains steadfast as we effectively manage supply chains, regardless of fluctuations in demand. I am delighted to confirm that we are well on track to achieve the objectives outlined in our ambitious five-year plan."
Shares in Volex were down 1.9% to 291.77p each in London on Thursday morning.
By Greg Rosenvinge, Alliance News senior reporter
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