Volex Regulatory News (VLX)

29 Jul 2009 07:00



29 July 2009

VOLEX GROUP plc

Annual General Meeting & 

Interim Management Statement for the 13 weeks ended 5th July 2009

Volex Group plc, the electrical and electronic cable assemblies group, will today hold its AGM at the offices of Eversheds LLP, 1 Wood Street, London, EC2V 7WS, at 14:30.

At the AGM, Mike McTighe, Chairman, will make the following comments regarding current trading, financial performance and outlook for the year. This statement covers the 13 week period from 6th April to 5th July 2009 and constitutes the group's first Interim Management Statement for the current FY2010 financial year.

Trading performance in the first quarter of FY2010 has been in line with expectations with revenue from continuing operations of £54m down 11% over the same period last year and operating profit of £3m up 304% on a comparable basis.

Power Products revenue decreased 18% compared to the same period last year, largely as a result of the slowdown in the consumer electronics market, and is flat compared to the final quarter of the prior year. Continued focus on the cost base, including the closure of the Jakarta facility in Q1 FY2010, and a favourable impact from lower commodity prices have combined to improve operating margins such that operating profit increased by 86% over last year and, encouragingly, the forward order book remains reasonably strong.

Interconnect revenue was flat on last year, while operating profit increased substantially, benefiting from the cost control and business mix repositioning programmes initiated during last year. India continues to trade strongly, with revenue up 74%, while the telecommunications sector in Europe and North America remains volatile.

The Group continues to focus on cash generation, particularly in respect of working capital. Operating cash flow in the period and net debt at 5 July 2009 are consistent with management's expectations.

Given the ongoing uncertainty surrounding the global economic environment the Board continues to be cautious on trading for the remainder of the year. However, following the resilient performance in Q1 and a reasonably robust order book, the Board remains comfortable with previous guidance given on the trading outlook for FY2010.

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