Volex plc (AIM:VLX), the global supplier of integrated manufacturing services and power products, is today issuing a trading update ahead of the scheduled announcement of the group’s interim results for the 26 weeks ended 4 October 2020, on 12 November 2020.

COVID-19

We are continuing to monitor the global situation in respect of COVID-19. The health, safety and well-being of our colleagues remain our principal responsibility and we are providing our facilities with our full support, following all public health advice, and complying with all government directives. All manufacturing facilities remained fully operational following adaptations that were made in the first quarter in response to the COVID-19 pandemic.

Trading

Volex’s performance has continued to improve since the group last updated the market at our Annual General Meeting on 30 July 2020.

Consequently, the board now expects revenue and profitability to be above current market expectations for both the half-year period and the full year as a whole.

• Unaudited revenue for the six months ended 4 October 2020 is expected to be at least $200 million, which represents an increase of 2.2 per cent over the same period a year earlier;
• Underlying operating profit is expected to be at least $20 million, which represents an increase of 25.8 per cent over the same period a year earlier;
• Net cash excluding lease liabilities as at 2 October 2020 was approximately $31 million.

Executive Chairman Nat Rothschild commented:

“We enter the final quarter of calendar 2020 in a healthy position. Our geographic and customer diversification continues to provide the business with a high degree of visibility at this time while ongoing demand for consumer electronics remains strong and the global shift to electric vehicles gathers pace.

Absent another widespread COVID-19 related global lockdown, given the robust performance in the first half of the year, coupled with our strong forward order book position, the board expects to see a strong performance for the year as a whole that will be above current market expectations.

I would like to extend my sincere thanks to the entire Volex team for their invaluable contribution to this strong performance as we look ahead to the second half of the year with cautious optimism.”