Volex Regulatory News (VLX)

24 Jul 2007 07:00

Volex Group PLC24 July 2007 24 July 2007 Volex Group plc Interim Management Statement In accordance with the new requirements to issue an Interim Management Statementthe Board has approved the following statement to be issued ahead of the AnnualGeneral Meeting: The Board is pleased to report that trading for the 16 weeks to 20 July 2007 isin line with management expectations and that the Group has continued to makegood progress. Group revenue in the period was 1% behind the same period last year. In localcurrency terms, revenue grew 5%. The Board expects positive growth across alldivisions to continue for the financial year, with improved operating margins aswe begin to benefit from our restructuring programme and improving productivity. Power Products revenue increased 3% compared to the same period last year. Inlocal currency terms revenue increased 12%, continuing the strong growth trendreported for FY2007. Margins have remained stable, though fluctuating commodityprices continue to be a matter for close management attention. Revenue on Interconnect declined 8% compared to the same period last year, and3% in local currency terms. The decline was driven by a customer rationalisationprogramme that was carried out during the second half of FY2006 and the firsthalf of FY2007. On a sequential basis, the division's revenue grew 7% comparedto the previous 16 week period. The forward order book is positive and thepipeline is strong, especially with the activities focused on High Speed andRadio Frequency products. Revenue in Wiring Harness is 1% ahead of the same period last year and theoperational reorganisation of the division is progressing as planned. We expectto complete this project during the fiscal year at which point we should beginto see the benefits of the cost reductions with an improvement in operatingmargins. Net debt at the end of the first quarter was £13.4m compared to £15.5m at thesame date last year. There have been no other significant changes in theposition of the Group in the period since the publication of the Report andAccounts for the 52 weeks ended 1 April 2007. The outlook for the financial year is positive with a strengthening order bookand sales pipeline confirming the Board's view that the Group is makingstrategic progress. - ends - For further information, please contact: Volex Group plc 01925 830101Richard Arkle, ChairmanHeejae Chae, Group Chief ExecutiveIan Degnan, Group Finance Director Weber Shandwick Financial 020 7067 0700Nick Dibden / James White This information is provided by RNS The company news service from the London Stock Exchange