Volex Regulatory News (VLX)

23 Jul 2008 07:00



23 July 2008

Volex Group plc

AGM and Interim Management Statement

Volex Group plc, the global electrical and electronic cable assemblies company, will today hold its AGM at the offices of Eversheds LLP, 70 Great Bridgewater St, Manchester, M1 5ES at 15.30. 

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 16 week period from 30 March to 20 July 2008 and constitutes the Group's first Interim Management Statement for the current financial year.

Group revenue in the period was 14.8% (12.0% at constant exchange rates) ahead of the same period last year and the Group returned to operating profitability after the modest operating losses incurred in the second half of last year. 

Power Products continues to trade strongly and revenue increased by 17.5% (17.0% at constant exchange rates) compared to the same period last year. Our forward order book remains strong, despite the Global economic uncertainty. We continue to take actions designed to mitigate the potential impact of any future downturn in global consumer demand as well as volatile commodity prices, in particular copper.

Interconnect revenue increased by 10.8% (3.9% at constant exchange rates) compared to the same period last year. The Telecommunications sector remains volatile with an improvement in order levels in Europe offsetting a decline in order levels in North America. Revenue in India continues to grow strongly with growth of 135% over the same period last year due to new customers and the impact of the infrastructure roll-out across the Country. We continue to reposition the mix of business away from the wireless infrastructure sector and our strategy to develop High Speed products has resulted in new business wins and orders from two key target accounts.

Wiring Harness revenue is 15.2% (15.2% at constant exchange rates) ahead of the same period last year, although our main focus is on improving the operations and operating margins. Operating losses in the period have stabilised at a similar level to the second half of last year. 

As previously announced, during the period we ceased production in two facilities, one in Canada and another in Mexico.

Net debt at the end of the first quarter reduced to £18.3m compared to £21.0m at 30 March 2008. In order to improve our financial flexibility we have secured an additional finance facility with Bank of Scotland plc which allows us to draw up to £2.0m in addition to our exisiting revolving credit facility with LloydsTSB. Both facilities run until December 2009. There have been no other significant changes in the position of the Group in the period since the publication of the Report and Accounts for the 52 weeks ended 30 March 2008.

The outlook for the year is in line with the Board's expectations. 

END