It’s a predictably quiet start back for corporate news after the long Easter weekend but we’ve seen a brace of updates out from Volex, the critical power and data connectivity company. With a market cap of £800m, this is a heavyweight play on the AIM market but management this morning confirmed plans to migrate to the main board by the summer, in a move that should see the company qualify for inclusion in the FTSE-250. At the same time, a £40m share buyback was also announced, with plans to conclude this over the next twelve months. The market reaction looks relatively muted, although this does come off the back of a strong run for the stock. The Volex share price was up 1.5% shortly after the open.
Flooring manufacturer Victoria has this morning announced a sale and lease back deal on its Belgian distribution centre. This plus additional property disposals are expected to provide complete funding for the transfer of manufacturing to a Turkish site, which itself is expected to be cash generative within the current financial year. The Victoria share price did trade as much as 10% up on the news in early trade although gains have been short lived.
Communications technology company MTI issued a note this morning advising of multiple contract wins worth $6m. These are all into the defence sector, an area that has seen significant valuation gains over the last couple of years. Management noted that the deals enhance the order book both for the current and next financial year, whilst also supporting the company’s ability to continue growing. The MTI share price was up 8% by 8.45am.
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