Volex plc ("Volex"), the global provider of cable assemblies, issues the following trading update ahead of the announcement of its full year results for the year ended 1 April 2018 on 8 June 2018.
- Trading in line with expectations
- Full-year sales expected to show a modest return to growth reversing the trend of a sales decline seen over the previous 3 years
- Excluding sales to our largest power customer, full year-sales expected to grow by 5 per cent
- Successful diversification in revenue - top 3 customers now account for 38 per cent of sales, as compared with top 3 customers accounting for 47 per cent of sales 3 years ago
- Net cash at the year-end of $9.9million an increase from the $5.8million reported at the half year
In addition, the board announces that John Molloy, current Chief Executive Officer of the Volex power division, has been appointed as Chief Operating Officer of Volex, with profit and loss responsibility for all of our manufacturing sites across the globe. He will work alongside Daren Morris our Chief Financial Officer, who continues to be responsible for all group commercial, legal, finance and administrative functions.
Nat Rothschild Executive Chairman of Volex commented: "As announced at the time of the first half results in November 2017, competition continued to be intense in the second half and cost inflation has continued across both our raw material and labour cost lines. However, our sales pipeline, developed over the past year, has started to convert into new revenues for the group, and we expect to deliver a robust trading performance for the full year in line with the Board's expectations. We continue to review value accretive acquisitions in order to diversify our customer base, and expect to make further progress in this regard in the coming months.
"We operate in an intensely competitive market and as such will continue to monitor closely the cost base of the group and where necessary will take further decisive actions to ensure that we continue to make further progress in delivering value to our stakeholders."