Last checked at 19 Aug 2022 07:00
Volex plc
("Volex" or the "Company")
AGM Statement
Strong start to FY2023 and continued progress across the business
Volex plc (AIM: VLX), the global manufacturer supplying power products and integrated manufacturing services, today issues a trading update for the three months ended 30 June 2022 ahead of the Company's Annual General Meeting, being held today at 4:00pm BST.
Continued momentum
Volex's performance in the first quarter has been strong, in line with management's expectations and the new, five-year growth plan.
Revenues grew organically by 4.9% reflecting positive customer demand and our ability to deliver against the backdrop of a challenging supply chain environment.
As outlined at the Company's full year results in June 2022, we have continued to maintain high levels of utilisation across each region, with higher inventory levels than the previous year in order to support the timely delivery of complex products to customers.
Integration of the acquisitions made during FY2022 is progressing well and Volex continues to develop a strong acquisition pipeline.
Supportive end market conditions
The Company's diverse end markets continue to support Volex's long-term strategic plans and affords the Group a high degree of resilience:
· Electric Vehicles: Continued revenue growth resulting from the investment we have made to enhance our capabilities and enable us to support a range of products for our EV customers.
· Consumer Electricals: Revenues continue to grow, reflecting increasing market share through selling activity, as well as the delivery of new customer projects.
· Medical: Demand from Medical customers remains robust and revenues are ahead of the previous year, despite challenges due to the limited availability of components.
· Complex Industrial Technology: Demand in our core business remains strong, next-generation high speed cable volumes are expected to increase in future periods as customers accelerate their technology replacement programmes.
Outlook
Management continues to focus on diversification, vertical integration and realising cross-selling opportunities across the business in order to deliver sustainable revenue growth.
Overall, whilst still early in the year, the encouraging trends in the first quarter mean the Board expects to deliver full year underlying operating profit in line with current market expectations1.
1 Latest company compiled view of market expectations shows an underlying operating profit consensus of $62.8 million with a range of $62.3 million to $64.0 million.
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 |
Singer Capital Markets - Nominated Adviser & Joint Broker Shaun Dobson George Tzimas | +44 (0)20 7496 3000 |
HSBC Bank plc - Joint Broker Simon Alexander Joe Weaving | +44 (0)20 7991 8888 |
Powerscourt - Media Enquiries James White Nicholas Johnson Maxim Hibbs | +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 7,800 employees 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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