RNS Number : 5159V
15 April 2021
15 April 2021
Volex plc (AIM:VLX), the global supplier of integrated
manufacturing services and power products, is pleased to provide
the following update on trading ahead of the scheduled announcement
of the Group's full year results for the 52 weeks ended 4 April
2021(1) on 17 June 2021.
Financial and operational performance
The Group delivered a robust performance in the second half of
the financial year, underpinned by strong demand from customers in
the consumer electronics and electric vehicle markets.
The performance for the period includes over $52 million of
revenue from electric vehicle customers, a significant increase of
187% compared to the previous year, as we expanded our customer
base and product offering in this market.
There has also been an overall stabilisation in demand from our
core medical and industrial markets as well as healthy year-on-year
growth from data centre customers as the trend towards home-working
As a result, revenue for the full year will be ahead of market
expectations and be at least $440 million while underlying
operating profit is expected to be at least $41 million, ahead of
the most recently guided range.
Margins benefited from foreign exchange movements and favourable
commodity pricing in the first half of the financial year and,
although these unwound in the second half as anticipated, the Group
delivered strong year-on-year margin growth. The underlying
operating margin achieved for the full year represents a
satisfactory balance between revenue growth and profitability.
Although the business and operational challenges posed by
Covid-19 have not abated, all sites have remained fully operational
even as our local teams have prioritised keeping our employees
Acquisition activity and balance sheet
The acquisition of De-Ka Elektroteknik Sanayi ve Ticaret Anonim
irketi ("DE-KA") completed on 18 February 2021 and its integration
into the wider Volex business is progressing as planned,
accelerating our strategy of creating the most efficient and lowest
cost global producer in the industry.
DE-KA's sales and profits are currently significantly ahead of
the previous year and the business continues to enjoy very strong
demand in its core, white goods markets.
Following the acquisition of DE-KA, Group net debt (excluding
lease liabilities) will be approximately $6 million. Having
completed a successful refinancing in November 2020, Volex retains
a high degree of financial flexibility and management continues to
advance targeted investment opportunities, whilst maintaining its
highly disciplined approach to potential acquisitions.
The Group expects to announce a recommended dividend for FY2021
that is no less than 2.2 pence per share.
Executive Chairman, Nat Rothschild commented:
"Volex delivered a particularly strong end to the period with
our resilient business model meeting the challenges posed by the
Covid-19 pandemic head-on. Robust demand in the electric vehicle
and consumer electronics markets underpinned our performance in the
second half and, thanks to our diverse customer base and global
footprint, we are well placed to deliver on the next stage of our
development as we look to increase investment and grow our
business. Whilst we are now entering a more challenging
inflationary environment, we aim to defend the significant margin
gains we have made. Unless future lockdown measures severely
disrupt our customers or operations, we are confident of further
revenue and profit progression in FY2022."
This announcement, released by Volex plc, contains inside
information for the purposes of Article 7 of the Market Abuse
Regulation (EU) 596/2014 (MAR), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
For further information please contact:
Volex plc +44 (0) 7747 488 785
Nat Rothschild, Executive Chairman
Jon Boaden, Chief Financial Officer
Powerscourt - Media Enquiries +44 (0)20 7250 1446
N+1 Singer - Nominated Adviser and Joint Broker +44 (0)20 7496
HSBC Bank Plc - Joint Broker
+44 (0)20 7991 8888
1. All figures in this trading update are unaudited. Audited
amounts will be included in our full year results announcement on
17 June 2021.
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(END) Dow Jones Newswires
April 15, 2021 02:00 ET (06:00 GMT)
Grafico Azioni Volex (LSE:VLX)
Da Lug 2021 a Ago 2021
Grafico Azioni Volex (LSE:VLX)
Da Ago 2020 a Ago 2021