Volex First Half Results
Volex Plc 10 November 2017
- A statutory operating profit of $5.1 million is the best result in the past 5 years, reflecting an improved underlying operating performance and an absence of one-off restructuring costs.
- Group revenue is down by $4.6 million on the prior period primarily as a result of a further $11.0 million decline in our largest Power customer’s revenues.
- Revenue from other customers increased by 4.8% with the Cable Assemblies division showing a 8.0% revenue increase.
- Underlying operating profit is up 26.8% on H1 FY2017 despite the overall Group reduction in sales.
- A statutory profit before tax of $4.2m and a reduced effective tax rate of 14.8% yields a basic EPS of 3.9c
- Despite investment in inventory of $5.3m over the period, the Group remains in a net cash position of $5.8 million.
- Refinancing completed in June 2017 with facility reduced from $45 million to $30 million following significant cash generation over the past 18 months.
Intention to move to AIM in order to have greater flexibility to pursue growth and partnership opportunities