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Electric vehicle demand boosts Volex performance
StockMarketWire.com
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Global supplier of integrated manufacturing services and power products, Volex, has said it delivered a 'robust performance' in the second half of the financial year, underpinned by strong demand from customers in the consumer and electronics and electric vehicle markets.
The performance for the 52 weeks ended 4 April 2021 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 core medical and industrial markets as well as healthy year-on-year growth from data centre customers as the trend towards home-working continues, the company said.
As a result, Volex said it expects 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.
The acquisition of De-Ka Elektroteknik Sanayi ve Ticaret Anonim Şirketi completed on 18 February 2021 and its integration into the wider Volex business is progressing as planned, accelerating the company's 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.
At 8:24am: (LON:VLX) Volex PLC share price was 0p at 247p
Story provided by StockMarketWire.com
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