Last checked at 26 Feb 2016 07:00
Volex plc
Trading Update
26 February 2016
Volex plc ("Volex" or the "Group"), a global provider of power and data cabling solutions, today announces a trading update for the year ending 3 April 2016. Preliminary results will be announced by Volex on 9 June 2016.
As stated at the time of our half year results announcement in November 2015, demand was slow in the first half and key customer new product launches were deferred into the second half of the year. Expected demand for both existing and new products from our largest customer was less than expected in the second half of the year, and we now anticipate that sales for the full year will be in the range of $360 to $370 million. Elsewhere we are seeing competition and reduced demand in our Asian power cord business partially offset by positive trends in our North American healthcare business.
Our central cost base has been significantly reduced to better align the business with current revenue performance, and further savings have been identified at the factory level.
In the short term, operational gearing in our business has resulted in a fall in our gross profit margin, and the Board expect to announce full year operating profits (before exceptional costs and share-based payments) in the range of $4 to $5 million.
As at the end of the third quarter our leverage ratio (as defined in our $45million revolving credit facility) was 1.9x and our interest cover ratio was 7.7x.
For further information please contact:
Volex plc
Nat Rothschild Executive Chairman +44 203 370 8830
Daren Morris Chief Financial Officer +44 203 370 8830
Liberum
Steve Pearce / Steve Tredget +44 203 100 2000