Volex FY results seen ahead of market expectations

Critical power and data transmission products manufacturer Volex said on Thursday that its full-year performance was seen ahead of market expectations as "strong organic growth" was driven by its " attractive positions" in diversified end markets.

Volex said revenue was now expected to be no less than $900.0m, representing an increase of at least 25% over the prior year, including seven months contribution from its acquisition of Murat Ticaret, while underlying operating profits were also now anticipated to be "slightly ahead of analyst expectations".

The AIM-listed group said its performance underscored its ability to secure additional customer commitments and deliver new projects, whilst maintaining "robust financial and operational discipline".

Operating profit margins improved in the second half of the year, partly due to product mix, including the contribution of Off-Highway sales, offset by accelerating investment in future strategic growth initiatives to support increased, long-term customer demand.

Chairman Nat Rothschild said: "Our ability to continue to deliver strong growth in challenging markets is a testament to the quality of the team, our strategy and our ability to respond to the needs of our customers. We enter the new financial year with confidence and optimism thanks to the strong momentum generated in the current financial year, improving market conditions in the electric vehicles and consumer electricals sectors, as well as an abundance of opportunities in the new off-highway sector.

As of 1230 BST, Volex shares were up 6.04% at 305.39p.

Reporting by Iain Gilbert at Sharecast.com