Trading Update

RNS Number : 8698E

Volex Group PLC

14 April 2011

 



For immediate release                                                                                     14 April 2011

VOLEX GROUP plc

Trading Update

Volex Group plc ('Volex' or the 'Group'), the global provider of customised electrical and optical interconnect solutions, today announces a trading update for the three months to 3 April 2011.

Revenue in the final quarter of the FY2011 financial year continued to be strong, significantly up on the same period last year and slightly ahead of Q3 revenue reported in the Interim Management Statement of 16 February 2011. Trading momentum has been maintained across the whole group with year-on-year growth in excess of 20% achieved in Q4 in each of our four sectors (Telecom/Datacom, Healthcare, Consumer and Industrial).

Gross margin percentage in Q4 was maintained at Q3 levels, as the impacts of initiatives to pass on cost increases started to have a beneficial effect. Operating profit in the fourth quarter was significantly ahead of last year and higher than reported in Q3. As a result, full year operating profit will be in line with current market expectations for the twelve months to 3 April 2011.

The Group again achieved positive cash flow in the quarter, with the ongoing focus on working capital efficiency continuing to generate cash.

The impact on the global electronics industry of last month's natural disasters in Japan has been the subject of much media comment in recent weeks. While the Group supplies Japanese OEM's, this business is typically conducted with outsourced design and manufacturing organisations located outside Japan, whose supply chains have not been adversely affected. Therefore, the Group does not anticipate any material impact from the disaster, although it continues to monitor the situation closely.

Looking ahead into FY2012, healthy order book levels and new product offerings, together with further progress in embedding the Group's new customer engagement model, mean the Group is positioning itself to achieve higher quality single digit percentage revenue growth in FY2012 and improved gross margins, with the latter expected to exit next year at around 20%. Consequently operating profit in FY2012 is expected to increase in line with current analyst expectations.

Results for the year ended 3 April 2011 will be announced on Wednesday 1 June 2011.  

Certain statements in this announcement are forward-looking statements which are based on Volex's expectations, intentions and projections regarding its future operating performance and objectives, anticipated events or trends and other matters that are not historical facts. Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as "anticipates", "aims", "could", "may", "should", "expects", "believes", "intends", "plans", "targets", "goal" or "estimates".  By their very nature forward-looking statements are inherently unpredictable, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, by way of example only and not limitation, general economic conditions, currency fluctuations, competitive factors, the loss or failure of one or more major customers, changes in raw materials or labour costs, and issues associated with implementing our strategic plan among other risks. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of such statements and, except as required by applicable law, Volex undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

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Volex Group plc

Ray Walsh                      Group Chief Executive                         [phone]

Andrew Cherry                Group Finance Director                        [phone]

Buchanan Communications

Charles Ryland / Helen Chan                                                      [phone]

 

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