Last checked at 27 Jul 2023 07:00
Volex plc
("Volex", the "Group" or the "Company")
AGM Statement
Trading momentum continues in the first quarter
Volex plc (AIM: VLX), the specialist integrated manufacturer of critical power and data transmission products, is pleased to report a trading update for the three months ended 30 June 2023, ahead of the Company's annual general meeting, being held at 4:00pm BST today.
Trading continues to perform in line with management expectations and the Company is pleased to report a continuation of the positive trading momentum experienced in the prior year, with year-on-year constant currency organic growth of 6.5% recorded in the first quarter of the 2024 financial year.
Volex is a robust and highly diversified business. Investment in vertical integration, continuous improvement initiatives and a favourable mix across a highly diversified product portfolio is resulting in sustained margins despite a challenging macro-economic backdrop.
Overall customer demand is healthy. Improved supply chain conditions are accelerating order delivery turnaround, with improvements in lead times across manufacturing resulting in the normalisation of inventory levels for some customers.
The Group's strong positioning and competitive proposition is delivering a number of new customer project wins, validating management's focus on attractive markets with strong structural growth characteristics. This includes increasing demand for Volex's next generation of high-speed cables for data centres due to the growing market for artificial intelligence applications, as well as a range of solutions for the growing EV market.
Competition clearance is in process for the recently announced acquisition of Murat Ticaret. Integration planning is well advanced and the acquisition is expected to complete in two to three months' time, presenting the Group with an exciting additional growth opportunity to the organic growth potential that exists across the wider business.
Overall, trading for the first quarter is in line with the Board's expectations, and coupled with the encouraging trends in the first quarter, gives the Board confidence that the business will continue to make further progress in the year.
For further information please contact:
Volex plc Nat Rothschild, Executive Chairman Jon Boaden, Chief Financial Officer | +44 (0)7971 156 431 investor.relations@volex.com |
Peel Hunt LLP - Nominated Adviser & Joint Broker Ed Allsopp Tom Ballard Ben Harrington | +44 (0)20 7418 8900
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HSBC Bank plc - Joint Broker Simon Alexander Joe Weaving | +44 (0)20 7991 8888 |
Powerscourt - Media Enquiries James White Nicholas Johnson | +44 (0)20 7250 1446 |
About Volex
Volex plc (AIM: VLX) is a global leader in integrated manufacturing for performance-critical applications and a supplier of power products. We serve a diverse range of markets and customers, with particular expertise in cable assemblies, higher-level assemblies, data centre power and connectivity, electric vehicles, and consumer electricals. We are headquartered in the UK and operate from 19 manufacturing locations with a global workforce of over 8,000 people across 22 countries. Our products are sold through our own locally based sales teams and through authorised distributor partners to Original Equipment Manufacturers ('OEMs') and Electronic Manufacturing Services ('EMS') companies worldwide. All of the products and services that we offer are integral to the increasingly complex digital world in which we live, providing power and connectivity from the most common household items to the most complex medical equipment. For more information, please visit www.volex.com
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