Volex's shares boosted as first quarter expectations beaten

Premium power cord manufacturer Volex saw its shares rise on Tuesday after trading in the first quarter exceeded expectations on the back of higher profits and revenues.

A trading update from the company said profitability improved in the first quarter thanks to revenue growth "in excess of 7%" and lower operating expenses, with the price of copper reducing and the US dollar strengthening against Volex’s main functional currencies.

Volex has also taken steps to reduce its capacity in China and reduce its presence in India in a move that the group's chairman said will result in cost savings before the end of the year.

Nat Rothschild, executive chairman of Volex, said: "Our revenue has increased across all of our major geographies in the first quarter. We are seeing growth from both our established customers and building on our successes in winning new customers."

The AIM-traded company also reported that it has made "good progress" in the continuing integration of recent acquisitions MC Electronics and Silcotec Europe.

"We continue to assess the ramifications of a possible trade war between the US and China. We have yet to see an adverse effect on our business, or that of our major customers, but continue to monitor this situation closely," Rothschild added.

Volex’s shares were up 8.33% at 78.00p at 1427 BST.