Last checked at 27 Mar 2015 07:00
27 March 2015
Volex plc
Trading Update
Volex plc ("Volex" or the "Group"), a global provider of power and data cabling solutions, today announces a trading update for the year ending 5 April 2015. Preliminary results will be announced by Volex on 11 June 2015.
Overview
Since the announcement of the Group's Interim Results on 13 November 2014, Volex has continued to perform as planned and the Board of Directors expects to announce full-year operating profits (before exceptional costs and share-based payments) in line with market expectations.
We have completed the Volex Transformation Plan ("VTP"), which aims to sustainably improve the position of the Group over time, and we have seen the first related benefits in our financial results with increased sales, gross margins and operating profits.
In the coming year we will make further investment in both of our divisions and also continue to diversify our customer base while delivering sustainable, profitable growth.
We continue to focus on operational cash generation to allow us to continue to invest in the business, and unaudited net debt as at 13 March 2015 was $12.2 million (compared with $32.2 million as at 30 March 2014).
Restructuring activities
Since the VTP was launched in November 2013, we have undertaken a comprehensive overhaul of our structure, organisation and business processes. We are now entering the delivery phase where we leverage our divisional structure and our market differentiating global footprint to improve performance and increase our market presence.
We will book the final exceptional costs in relation to VTP in the second half of this financial year ending 5 April 2015.
Outlook
The transformation of Volex has strengthened our business and our focus on working more closely with key customers is expected to deliver further growth in sales and margins in the coming year.
For further information please contact:
Volex plc
Christoph Eisenhardt Chief Executive Officer +44 20 3370 8830
Daren Morris Interim Chief Financial Officer +44 20 3370 8830
Notes:
1. The Board of Directors believes that the current market forecast for operating profit before exceptional costs and share-based payments for the year ending 5 April 2015 is $8.5 million.