Volex Regulatory News (VLX)

9 Nov 2005 07:00

Volex Group PLC09 November 2005 Embargoed until 7.00am Wednesday 9 November 2005 VOLEX GROUP plc Interim results for the half-year to 2 October 2005 Volex Group plc, the global electrical and electronic cable assembly group,today announces its unaudited interim results for the half-year to 2 October2005. Financial Highlights:• Sales ahead of plan at £123.9m (2004 - £122.9m)• Operating profit before major restructuring programme £1.4m (2004 - £1.2m)(1)• Equity raising £19.0m gross completed in June• Reduction in finance charges to £1.7m (2004 - £2.5m)• Loss per share excluding major restructuring programme reduced from 7.8p to 3.3p (1) Operating loss after charging costs of major restructuring programme (£1.7m) was £0.3m (2004: profit £2.6m) The Chairman of Volex, Martin May, commented: "In June 2005 the Group successfully completed a £19m equity fundraising. Thisadditional equity together with improved new three-year bank facilities,provides the Group with the funds needed to restore the underlying performanceof its core businesses. We will have a much more tightly focused and leanerbusiness better able to meet the needs of our customers. Towards the end ofSeptember the Board approved a series of initiatives designed to acceleratethese changes. I expect this to translate into higher revenues, improved marginsand better cash generation over the second half year and beyond." The Chief Executive of Volex, John Corcoran, commented: "Volex will continue to drive its core business units as quickly as practical toacceptable levels of profitability. Although the cable assembly market proved tobe particularly challenging during the first half as a result of raw materialcost increases, I am confident that the steps we have taken will enable marginsto be restored. We continue to reduce our manufacturing footprint, moving tolower cost locations to better meet the challenges of this competitiveenvironment. The market position of the Group continues to be strong and set toimprove as we continue to develop our product offering." For further information please contact: Volex Group plc Today: 020 7067 0700 Thereafter: 01925 830101John Corcoran, Group Chief ExecutiveDerek Walter, Group Finance Director Weber Shandwick Square Mile 020 7067 0700Chris Lynch / Nick Dibden CHAIRMAN'S STATEMENT Revenues for the first six months of the year were £124m, broadly in line withthe same period last year. The Group generated an operating profit of £1.4mbefore the costs of the major restructuring programme, compared with £1.2m inthe first half of last year. The operating loss after charging costs of themajor restructuring programme was £0.3m (2004: profit £2.6m). Commodity pricescontinue to challenge the business, most notably copper which has increased bysome 20% since the start of this financial year. In June 2005 the Group successfully completed a £19m equity fundraising. Thisadditional equity together with improved new three-year bank facilities,provides the Group with the funds needed to restore the underlying performanceof its core businesses. We will have a much more tightly focused and leanerbusiness better able to meet the needs of our customers. Towards the end ofSeptember the Board approved a series of initiatives designed to acceleratethese changes. I expect this to translate into higher revenues, improved marginsand better cash generation over the second half year and beyond. The first half was a period of significant change for the Group and has affectedevery echelon of the Group, including a restructuring of the Group Board with,most notably, the appointment of Heejae Chae as Chief Operating Officer. We havetaken steps to strengthen the global management team, in particular recruitingnew personnel to strengthen the sales forces around the world. At the operatinglevel a number of facilities have been closed - Conover in the US and theMalaysian and the Philippines operations in Asia - whilst the Kanata factory inCanada was downsized. By the year end, we will have also closed ourAguascalientes factory and ceased manufacturing at Fremont. In summary, ourproduction capacities will have been reorganised and consolidated with lowercosts in more suitable locations to meet the needs of our customers and markets. Operations While there is some concern on the level of consumer and enterprise spending,sales are, overall, in line with the budgeted targets established at the end ofthe last financial year. The revenues were affected by lower than expectedtelecom sales, especially in Asia but harness sales increased slightly as weimplemented a significant restructuring programme to lower cost environments. Despite the disruption caused by the closure of sites in Malaysia and thePhilippines as capacity was transferred to China and Indonesia, sales in Asiawere at the same level as the previous year in local currency terms. Asiaimproved its profitability as a result of cost reduction measures. External sales sourced in North America increased by 4%; however, thetranslation to operating profits remains impacted by the cost profile of theregion. Significant changes were effected in the first half with the closure ofConover, the downsizing of Kanata and Fremont and the transfer of product at anaccelerated rate from all sites to Asia. Excluding the restructuring costs andallocation of Head Office costs, North America has shown ongoing half yearlyimprovement in reducing its operating losses with the first half of this yearvery close to break-even. Sales sourced in Europe, other than the UK, were at 88% of sales achieved lastyear, impacting profits. The results are in line with budget expectations asthere were a number of one-off projects delivered through the first half of lastyear that were not likely to be repeated this year. The manufacturing facilityin Tczew, Poland, was closed and consolidated into our other facility in Poland,at Bydgoszcz. In the UK, while the demand environment for our specialist harness businessesremained relatively stable, production difficulties experienced in the secondhalf of last year carried over and had a detrimental effect on the first half ofthis year. The majority of these issues have now been resolved and profitimprovement programmes have been implemented. Financial Review The Group is reporting its results for the first time under InternationalFinancial Reporting Standards and has therefore restated the comparative figuresas appropriate. The changes to the comparatives, which are explained in Notes 1and 2, are not significant in the terms of the income statement and the majorchange to the balance sheet is the inclusion of the £4m deficit on its two UKdefined benefit pension schemes. The Singapore dollar and Euro appreciated by 2% first half on first half whilstthe US dollar showed a 1% depreciation. The net impact on sales was a £1mincrease attributable to the foreign exchange translation gains; operatingprofits also benefited by £0.1m. The £1.8m major restructuring programme charge in the first half reflects thedownsizing of the Kanata site and the headcount reduction programme that hasalready been implemented up to the half year. These steps are part of the largerglobal restructuring programme described in the Circular to shareholders dated 6June 2005. The insurance claim in respect of the September 2004 fire at Tijuanais close to resolution with a favourable but modest impact on the carrying valueof the claim. Interest charges of £1.4m, excluding the refinancing costs, are £0.3m lower,reflecting the average lower net debt following the equity issue in June. Bankrefinancing charges including warrants and arrangement fees incurred to securethe 3-year facilities, totalled £2.8m and these are being amortised over 33months to the end of the 2008 financial year. The £1.2m tax charge in the first half of the year included an additional £0.2mcharge in respect of withholding tax - the overseas subsidiary concerned isbeing financially restructured and the accumulated tax will be paid in thesecond half of the year. Net debt at the end of the half-year was £17.5m, (after netting off £2.5m ofissue costs, which are to be amortised over the next 3 years) compared with£30.5m at 3 April 2005 and £33.1m at 3 October 2004. Proceeds from the raisingof equity less the equity-related costs netted £17.6m. Cash generated fromoperations in the period was £2.1m; interest paid was £1.4m; and tax paid was£2.2m. Capital expenditure, net of disposal proceeds, totalled £1.1m and adverseforeign exchange differences, arising from the strengthening of the currenciesagainst sterling, increased debt by £2.1m. We also paid bank refinancing costsof £2.4 million. The Board has not declared an interim dividend. As indicated in the 6 June 2005 Circular, we have applied to the High Court ofJustice for its approval to cancel the share premium account and apply thebalance to eliminate the deficit on distributable reserves. This approval wasobtained on 12 October 2005. Current trading and prospects Trading in our business continues, overall, to be in line with expectations,albeit that, as indicated above, we continue to experience rising commodityprices. The fundraising earlier in the year and the securing of long term bankingfacilities have restored financial stability to the Group. We have already begunto effect the reorganisation plan laid out in the June Circular and this willcontinue through the second half of the year, taking every opportunity toaccelerate it. We therefore expect that there will be a further substantialmajor restructuring programme charge in the full year accounts to reflect this.We have already announced, in November, the closing of Aguascalientes and thecessation of manufacturing at Fremont; other announcements will be made at theappropriate time. Our strategy, to become the leading independent producer of electronic and fibreoptic cable assemblies and electrical power cords, remains unchanged and wewill: •complete the re-organisation of our manufacturing footprint so that it becomes more effective and responsive to our customer needs, operating from lower cost locations better suited to the needs of our chosen markets; •develop sustainable new markets and products that enrich the margin opportunity for the Group; and •continue to strengthen and invest in the core competencies of the Group by enhancing key skills, such as engineering, development and sourcing on a global basis. With the recent changes in the Board structure and the Executive team, the Groupis now more focused on delivering the competitive profile required toout-perform the competition and the market. I remain confident that with theprogress made in the first half together with our plans for the second half, therecovery of the Group is progressing in line with plan. The Company intends to apply to the London Stock Exchange to move its listing toAIM and believes this is in the best interests of its shareholders as itprovides us with more flexibility at lower cost as we implement ourrestructuring plans. This process will require an Extraordinary General Meetingand is now under way. Finally, I would like to thank our workforce worldwide for their support andcommitment over the last six months, without which the Group would not have madesuch significant progress. The next six months will be particularly challengingfor all of us but I remain confident that with the continuing support of all ofour employees the future of the Group remains positive. Martin K. MayChairman Unaudited consolidated income statementFor the 26 weeks to 2 October 2005 (3 October 2004) 26 weeks to 26 weeks to 52 weeks to 2 October 3 October 3 April Notes 2005 2004 2005 £'000 £'000 £'000 Continuing operationsRevenue 3 123,897 122,873 244,551 ======= ======= ======= Operating (loss)/profit 3 (328) 2,564 (4,978) ____________________________________________Operating profit before major restructuring programme 1,436 1,229 1,768Major restructuring programme 4 (1,764) 1,335 (6,746) ____________________________________________Operating (loss)/profit (328) 2,564 (4,978) Finance costs ____________________________________________- interest (net) (1,417) (1,681) (3,326)- refinancing costs and amortisation of debt issue costs (252) (769) (932) ____________________________________________ (1,669) (2,450) (4,258) ------- ------- -------(Loss)/profit before taxation (1,997) 114 (9,236) Tax 5 (1,179) (1,089) (4,424) ------- ------- -------Loss for the period (3,176) (975) (13,660) ------- ------- -------Loss per share* 6from continuing operationsBasic (7.4)p (3.3)p (46.3)p * The loss per share before the costs of the major restructuring programme foreach period is shown in note 6. Unaudited statement of recognised income and expenseFor the 26 weeks to 2 October 2005 (3 October 2004) 26 weeks to 26 weeks to 52 weeks to 2 October 3 October 3 April 2005 2004 2005 £'000 £'000 £'000 Exchange differences on translation of foreign operations 107 732 266 Actuarial losses on defined benefit pension schemes - - (487) ------- ------- -------Net income/(expense) recognised directly in equity 107 732 (221) Loss for the period (3,176) (975) (13,660) ------- ------- -------Total recognised net expense for the period (3,069) (243) (13,881) ------- ------- ------- Unaudited consolidated balance sheetAs at 2 October 2005 (3 October 2004) 26 weeks to 26 weeks to 52 weeks to 2 October 3 October 3 April Notes 2005 2004 2005 £'000 £'000 £'000Non-current assetsIntangible assets 2,066 3,961 2,106Property, plant & equipment 13,221 19,645 13,392Deferred tax asset - 555 - ------- ------- ------- 15,287 24,161 15,498 ------- ------- ------- Current assetsInventories 30,679 29,909 28,030Trade & other receivables 55,246 54,586 50,381Cash & cash equivalents 9,442 16,956 14,962 ------- ------- ------- 95,367 101,451 93,373 ------- ------- ------- Total assets 110,654 125,612 108,871 ======= ======= ======= Current liabilitiesBorrowings 7 97 49,919 45,453Other 46,235 43,258 40,885 ------- ------- ------- 46,332 93,177 86,338 ------- ------- -------Net current assets 49,035 8,274 7,035 ------- ------- ------- Non-current liabilitiesBorrowings 7 26,845 149 43Retirement benefit obligation 3,836 3,537 4,095Provisions & other non-current liabilities 3,689 - 3,270 ------- ------- ------- 34,370 3,686 7,408 ------- ------- ------- Total liabilities 80,702 96,863 93,746 ======= ======= =======Net assets 29,952 28,749 15,125 ======= ======= =======EquityShare capital 8 13,928 7,465 7,465Share premium 8 32,110 20,986 20,986Translation reserve 8 373 732 266Profit & loss account 8 (16,459) (434) (13,592) ------- ------- -------Total equity 29,952 28,749 15,125 ======= ======= ======= Unaudited consolidated cash flow statementFor the 26 weeks to 2 October 2005 (3 October 2004) 26 weeks to 26 weeks to 52 weeks to 2 October 3 October 3 April Notes 2005 2004 2005 £'000 £'000 £'000 Net cash outflow from operating activities 9 (1,498) (3,022) (4,376) Cash flows from investing activitiesProceeds on disposal of property, plant & equipment 25 3,525 7,826Purchases of property, plant & equipment (1,110) (665) (1,984)Purchases of intangible assets (21) (3) (77) ------- ------- ------- Net cash (used in)/from investing activities (1,106) 2,857 5,765 ------- ------- -------Cash flows from financing activitiesNet proceeds from issue of share capital 17,587 - -Net (repayments)/advances of debt:- due within one year 10 (43,264) (619) 2,155- due after more than one year 10 26,136 - (619)Refinancing costs paid 10 (2,390) (580) (743)(Decrease)/increase in bank overdrafts 10 (1,276) 6,275 1,050 Repayments of obligations under finance leases 10 (47) (55) (136) ------- ------- -------Net cash (used in)/from financing activities (3,254) 5,021 1,707 ------- ------- -------Net (decrease)/increase in cash & cash equivalents (5,858) 4,856 3,096 Cash & cash equivalents at beginning of period 14,962 11,919 11,919 Effect of foreign exchange rate changes 338 181 (53) ------- ------- -------Cash & cash equivalents at end of period 9,442 16,956 14,962 ======= ======= ======= NOTES TO GROUP RESULTS 1. Basis of preparation The Group's financial statements for the financial year ending 2 April 2006 willbe prepared in accordance with International Financial Standards as adopted foruse in the European Union (EU). Accordingly this Interim financial informationhas been prepared using accounting policies consistent with IFRS. The financialinformation has been prepared on the basis of IFRS that the Directors expect tobe applied as at 2 April 2006. IFRS remains subject to amendment andinterpretation by the International Accounting Standards Board (IASB) and thereis an ongoing process of review and endorsement by the European Commission.Consequently, the revised accounting policies, which are detailed in the VolexGroup IFRS transition document, available on its website, www.volex.com, areprovisional and are subject to change. These accounting policies have beenconsistently applied to all periods presented in these Interim financialstatements with the exception of IAS 32 and IAS 39, Financial Instruments. Inaccordance with IFRS 1, First Time Adoption of International Financial ReportingStandards, the Directors have elected not to restate comparative information forthe impact of IAS 32 and IAS 39, but have only adopted these standards to applyfrom 4 April 2005. The comparative information for the 26 weeks to 3 October 2004 and 52 weeks to 3April 2005 has been restated to take account of the adoption of IFRS (see note 2). The abridged profit and loss accounts and cash flow statements for the 26 weeksto 3 October 2004 and 2 October 2005 and balance sheets as at 3 October 2004 and2 October 2005 are unaudited and have not been reviewed by the auditors. Theprofit and loss account and cash flow statement for the financial year ended 3April 2005 and balance sheet as at 3 April 2005 are extracted and abridged fromthe Group's full accounts for that year. These were originally reported under UKGAAP and, as noted above, have been restated to reflect the transition to IFRS.The UK GAAP statutory accounts for the financial year ended 3 April 2005 havebeen filed with the Registrar of Companies for England and Wales and have beenreported on by the Group's auditors. The Report of the Auditors was notqualified and did not contain a statement under Section 237 (2) and (3) of theCompanies Act 1985 (as amended). 2. Reconciliation of the transition from UK GAAP to IFRS The effect of transition from UK GAAP to IFRS on the Group's loss for the periodand net assets is set out below. Full details of the restatement andreconciliations with the previously published UK GAAP financial information forthe 26 weeks to 3 October 2004 and for the 52 weeks to 3 April 2005, togetherwith the accounting policies adopted following transition to IFRS can beobtained from the Group's IFRS transition document which is available on itswebsite, www.volex.com. 26 weeks to 52 weeks to 3 October 3 April 2004 2005 £'000 £'000 Loss for the period As previously reported under UK GAAP (1,128) (13,928) Reversal of goodwill amortisation 151 302Goodwill impairment charge - (132)Cost of defined benefit pension schemes 3 113Share options cost (1) (15) ---------- ----------Total adjustments 153 268 ---------- ----------As restated under IFRS (975) (13,660) ========== ========== As at As at 3 October 3 April 2004 2005 £'000 £'000 Net assets As previously reported under UK GAAP 32,135 18,869 Reversal of goodwill amortisation 151 302Goodwill impairment charge - (132)Net deficit of defined benefit pension schemes (3,537) (3,914) ---------- ----------Total adjustments (3,386) (3,744) ---------- ---------- As restated under IFRS 28,749 15,125 ========== ========== 3. Segmental analysis For management purposes, the Group is organised into regions based on locationof assets and these divisions form the basis on which the Group reports itsprimary segment information. 26 weeks to 26 weeks to 52 weeks to 2 October 3 October 3 April 2005 2004 2005 £'000 £'000 £'000Revenue by sourceAsia- External 46,435 45,534 90,022- inter segment 5,419 4,405 9,626 ---------- ----------- ---------- 51,854 49,939 99,648North America- External 39,040 37,405 74,746- Inter segment 1,049 1,356 2,419 ---------- ---------- ---------- 40,089 38,761 77,165United Kingdom- External 15,597 13,968 28,941- Inter segment 345 446 869 ---------- ---------- ---------- 15,942 14,414 29,810Other Europe- External 22,825 25,966 50,842- Inter segment 279 263 658 ---------- ---------- ---------- 23,104 26,229 51,500 Less inter segment (7,092) (6,470) (13,572) ---------- ---------- ----------Consolidated revenue 123,897 122,873 244,551 ---------- ---------- ---------- Operating profit/(loss)Asia 3,231 2,638 (2,376)North America (2,536) (2,001) (4,936)United Kingdom (1,295) (60) (440)Other Europe 272 1,987 2,774 ---------- ---------- ---------- (328) 2,564 (4,978) Finance costs (net) (1,669) (2,450) (4,258) ---------- ---------- ----------(Loss)/profit before tax (1,997) 114 (9,236) Tax (1,179) (1,089) (4,424) ---------- ---------- ----------Loss for the period (3,176) (975) (13,660) ---------- ---------- ---------- 26 weeks to 26 weeks to 52 weeks to 2 October 3 October 3 April 2005 2004 2005 £'000 £'000 £'000External revenue by destination Asia 36,186 36,127 71,243North America 38,010 35,817 71,691United Kingdom 16,983 18,573 38,542Other Europe 32,718 32,356 63,075 ----------- ---------- ----------- 123,897 122,873 244,551 =========== ========== ===========Revenue by product category Data/Telecommunications 51,608 53,079 104,409Power Cords 56,692 55,674 110,882Harnesses 15,597 14,120 29,260 ----------- ----------- ----------- 123,897 122,873 244,551 =========== =========== ===========Revenue by market sector Data/Telecommunications 44,232 47,696 94,296Consumer Products 49,935 48,207 95,614Industrial and Medical 13,737 12,948 25,588Vehicle and Aerospace 15,993 14,022 29,053 ----------- ----------- ----------- 123,897 122,873 244,551 =========== =========== =========== 4. Major restructuring programme 26 weeks to 26 weeks to 52 weeks to 2 October 3 October 3 April 2005 2004 2005 £'000 £'000 £'000 Global management restructuring 574 - -Lease provisions 1,190 - 3,298Closure of manufacturing facilities - - 1,399Impairment of goodwill - - 1,868Impairment of automated manufacturing line/tangible fixed assets - - 1,223Under-recovery of insurance claim - - 876Profit on sale of properties - (1,335) (1,918) ----------- ----------- ----------- 1,764 (1,335) 6,746 =========== =========== =========== During the period, as part of the Group's major restructuring programme, therestructuring of the Group's Global management team was started and the Grouphas moved from its existing premises in Canada into a smaller facility. Anonerous lease provision has been established against the vacated property. The taxation effect of these items was £nil. 5. Tax charge The Group tax charge for the period is based on the forecast tax charge for theyear as a whole and has been influenced by the differing tax rates in the UK andin the various overseas countries in which the Group operates. A non-recurringcharge of £0.2m has been recognised in the period with respect to withholdingtaxes for one of the Company's overseas subsidiaries. 6. Loss per share The calculations of loss per share are based on the following results andnumbers of shares: 26 weeks to 26 weeks to 52 weeks to 2 October 3 October 3 April 2005 Per Share 2004 Per Share 2005 Per Share £'000 p £'000 p £'000 p Loss for the financial year (3,176) (7.4) (975) (3.3) (13,660) (46.3)Other finance costs of preference shares (3) - (3) - (6) - ------- ------- ------- ------- ------- -------Basic loss (3,179) (7.4) (978) (3.3) (13,666) (46.3) Restructuring costs 1,764 4.1 (1,335) (4.5) 6,746 22.9 ------- ------- ------- ------- ------- -------Adjusted loss (1,415) (3.3) (2,313) (7.8) (6,920) (23.4) ------- ------- ------- ------- ------- ------- No shares No shares No shares Weighted average number of shares: 43,108,550 29,540,692 29,540,692 Adjusted loss per share has been calculated on the basis of continuingactivities before the major restructuring programme, net of tax. As the Grouprecorded a loss per share in each period, the share options and warrants areanti-dilutive and therefore there is no difference between the basic and dilutedloss per share. 7. Bank facilities On 30 June 2005, new three-year bank facilities with the Group's principalBankers became effective. As a consequence of signing these new bank facilitiesthe conditions relating to the existing warrants, 494,945 of which are in issue,have been amended to include a re-pricing to 73.5p and an extension of theexpiry date to 30 June 2008 (see note 10). 8. Statement of changes in shareholders' equity Share Share Translation Profit & capital premium reserve loss account Total £'000 £'000 £'000 £'000 £'000 Balance at 4 April 2004 7,465 20,986 - 540 28,991 Share options - - - 1 1 Exchange differences on translation of foreign operations - - 732 - 732Loss for the period - - - (975) (975) ------- ------- ------- ------- -------Balance at 3 October 2004 7,465 20,986 732 (434) 28,749 Share options - - - 14 14Exchange differences on translation of foreign operations - - (466) - (466) Actuarial losses on defined benefit pension schemes - - - (487) (487)Loss for the period - - - (12,685) (12,685) ------- ------- ------- ------- ------- Balance at 3 April 2005 7,465 20,986 266 (13,592) 15,125 Issue of share capital (net of costs) 6,463 11,124 - - 17,587Share options - - - 82 82Warrants - - - 227 227Exchange differences on translation of foreign operations - - 107 - 107Loss for the period - - - (3,176) (3,176) ------- ------- ------- ------- ------- Balance at 2 October 2005 13,928 32,110 373 (16,459) 29,952 ======= ======= ======= ======= ======= On 29 June 2005, an Extraordinary General Meeting approved an increase in theauthorised share capital of the Company to £18,830,000. On 30 June 2005, theCompany issued 25,850,340 ordinary shares for net proceeds of £17.6m. On 12 October 2005 the cancellation of the Company's share premium account wasconfirmed by the High Court of Justice, Chancery Division. The balance on thataccount will be used to eliminate the deficit on the Company's profit and lossaccount. 9. Reconciliation of operating (loss)/profit to net cash outflow from operating activities. 26 weeks to 26 weeks to 52 weeks to 2 October 3 October 3 April Notes 2005 2004 2005 £'000 £'000 £'000 Operating (loss)/profit (328) 2,564 (4,978)Adjustments for:Depreciation & impairment on property, plant & equipment 1,932 2,478 5,811Amortisation & impairment of intangible assets 61 71 2,000Gain on disposal of property, plant and equipment (9) (1,335) (1,918)Share options expense 82 1 15Increase/(decrease) in provisions 488 (162) 3,417 ----------- ----------- -----------Operating cash flow before movement in working capital 2,226 3,617 4,347 (Increase)/decrease in inventories (1,493) (1,566) 1,264Increase in receivables (2,899) (2,341) (297)Increase/(decrease) in payables 4,296 (387) (3,731) ----------- ----------- -----------Cash inflow/(outflow) generated by operations 2,130 (677) 1,583 Interest paid (net) (1,361) (1,927) (3,800)Taxation paid (net) (2,267) (418) (2,159) ----------- ------------ -----------Net cash outflow from operating activities (1,498) (3,022) (4,376) ----------- ------------ ----------- 10. Analysis of net debt 4 April Cash flow Exchange Other 2 October 2005 movement non-cash 2005 changes £'000 £'000 £'000 £'000 £'000 Cash at bank and in hand 14,962 (5,858) 338 - 9,442Overdraft (4,026) 1,276 (68) 2,818 -Debt due after one year - (26,136) (364) (2,818) (29,318)Debt due within one year (41,289) 43,264 (1,975) - -Finance leases (181) 47 - - (134)Issue costs - 2,390 - 120 2,510 ---------- --------- --------- --------- ----------Net debt (30,534) 14,983 (2,069) 120 (17,500) ---------- --------- --------- --------- ---------- Non-cash changes within Issue costs include £227,000 associated with theamendment of warrants (see note 7) and accrued costs of £145,000, lessamortisation of debt issue costs of £252,000. Note: This Interim Report will be incorporated in a Circular being sent to allshareholders in respect of the Board's recommendation to move the Company'sordinary share listing to AIM. Copies can also be obtained from the CompanySecretary, Volex Group plc, Dornoch House, Kelvin Close, Birchwood Science Park,Warrington WA3 7JX. Tel: 01925 830101. The presentation being made to stockbroking analysts on Wednesday 9 November2005 will be on the Company's web site www.volex.com from 9.30 a.m. that day. This information is provided by RNS The company news service from the London Stock Exchange