TIDMVLX
RNS Number : 6645I
Volex PLC
20 April 2022
20 April 2022
Volex plc
("Volex", the "Group" or the "Company")
Trading update
Volex plc (AIM:VLX), the global supplier of integrated
manufacturing services and power products, provides the following
update on trading ahead of the announcement of the Group's full
year results for the 52 weeks ended 3 April 2022 ("the year").
Results ahead of expectations
Volex is pleased to confirm that the Group's revenues and
underlying operating profits are expected to be ahead of consensus
market expectations(1) for the year.
The Group expects, subject to finalisation of the accounts and
audit, revenues to be in excess of $605 million (FY2021: $443
million) and underlying operating profit(2) to be in excess of
$55.0 million (FY2021: $42.9 million).
Strong customer demand and organic revenue growth
Volex has continued to trade strongly, delivering robust organic
revenue growth, including a significant contribution from the
Electric Vehicles sector, where revenue has almost doubled. Demand
has increased during the year with greater visibility of forward
orders as customers look to secure manufacturing capacity.
Responding to supply chain challenges and disruption
The Group is managing global supply chain challenges
effectively, responding dynamically to meet customer expectations.
Working capital has increased due to the growth in sales, as well
as investment in higher levels of inventory to maintain our
position as a reliable partner to customers in an environment with
extended supplier lead times and delays with global freight.
The Group is well positioned to navigate the challenges of a
dynamic macro-environment, underpinned by its diverse markets,
capabilities and global manufacturing footprint. These strengths
have been central to the continued strong progress made by the
Group, despite the challenges posed by Covid-19, the on-going
disruption to supply chains globally and, more recently, the
Russian invasion of Ukraine(3) .
Managing inflationary cost pressure
In a global inflationary environment, our ability to pass
through increased costs to customers, protecting profitability
while maintaining competitiveness, has been important. Our global
teams have deep relationships with customers, enabling efficient
and regular mechanisms to modify costs as required.
Investing in growth
As planned, during the year we have made strategic, targeted
investment in production facilities, equipment, IT and people to
support our long-term growth objectives. The strategic
diversification achieved in recent years has positioned the Group
well, with capital investment supporting organic revenue
initiatives and vertical integration opportunities in growth
areas.
We completed four acquisitions during the year(4) . These have
enhanced our capabilities, creating additional opportunities in
attractive market sectors while expanding our global manufacturing
footprint. We are focused on the delivery of benefits through the
integration of our newly acquired businesses.
The Group continues to maintain a disciplined approach when
assessing potential acquisition opportunities and enjoys a high
degree of financial flexibility thanks to the new, enlarged debt
facilities, secured in February 2022, which support Volex's ongoing
growth plans.
Nat Rothschild, Executive Chairman said, "We have delivered an
excellent performance in a challenging environment and are now well
ahead of the five year plan we set out in October 2019. This is a
validation of an effective strategy which has created a resilient
and diversified business. We continue to pursue a number of
exciting organic growth opportunities, while successfully acquiring
and integrating compelling acquisitions, leaving us well placed for
the future."
- Ends -
For further information please contact:
Volex plc
+44 (0) 7747 488785, investor.relations@volex.com
Nat Rothschild, Executive Chairman
Jon Boaden, Chief Financial Officer
Julian Wais, Head of Investor Relations
Singer Capital Markets - Nominated Adviser & Joint
Broker
+44 (0)20 7496 3000
Shaun Dobson
George Tzimas
HSBC Bank plc - Joint Broker
+44 (0)20 7991 8888
Simon Alexander
Joe Weaving
Powerscourt - Media Enquiries
+44 (0)20 7250 1446
James White
Maxim Hibbs
Notes:
1. The Company has compiled forecasts from four analysts with
current market forecasts for the 52 weeks ending 3 April 2022 for
revenue to be in the range of $575.0m to $586.3m, with a consensus
of $581.2m, and for underlying operating profit to be in the range
of $53.8m to $54.6m, with a consensus of $54.2m.
2. Underlying operating profit is before adjusting items which
are one-off in nature and significant (such as restructuring costs,
impairment charges or acquisition-related costs), the amortisation
and impairment of acquired intangible assets and share-based
payment charges. This trading update is based upon unaudited
management accounts information. Forward-looking statements have
been made by the Directors in good faith using information
available up until the date that they approved this statement.
Forward-looking statements should be regarded with caution because
of the inherent uncertainties in economic trends and business
risks.
3. Our direct operational exposure to Russia and Ukraine is low.
We have no companies, facilities or employees in either country. In
the most recent financial year ended 3 April 2022, sales to Russia
represented less than 0.5% of Group revenue, with revenue into
Ukraine being negligible. We have no significant dependency on
direct supplies of components or materials from either Russia or
Ukraine.
4. The following acquisitions were completed during the
year:
-- Irvine Electronics, Inc (US) for total cash consideration of $16.4m - October 2021;
-- Prodamex SA de CV (Mexico) and Terminal & Cable TC Inc.
(Canada) for combined total cash consideration of CAD$22.5m
($17.8m) - January 2022; and
-- inYantra Technologies Pvt Ltd (India) for 51% majority equity
investment ($8.0m) and 13.5 acres of industrial land and property
($5.0m) - the equity investment completed in March 2022 with the
land and property purchase expected to complete in the first
quarter of FY2023.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTSFMFWUEESEEL
(END) Dow Jones Newswires
April 20, 2022 02:00 ET (06:00 GMT)
Grafico Azioni Volex (LSE:VLX)
Storico
Da Feb 2024 a Mar 2024
Grafico Azioni Volex (LSE:VLX)
Storico
Da Mar 2023 a Mar 2024