RNS Announcement

RNS Number:7291A Volex Group PLC 24 July 2007 24 July 2007 Volex Group plc Interim Management Statement In accordance with the new requirements to issue an Interim Management Statement the Board has approved the following statement to be issued ahead of the Annual General Meeting: The Board is pleased to report that trading for the 16 weeks to 20 July 2007 is in line with management expectations and that the Group has continued to make good progress. Group revenue in the period was 1% behind the same period last year. In local currency terms, revenue grew 5%. The Board expects positive growth across all divisions to continue for the financial year, with improved operating margins as we begin to benefit from our restructuring programme and improving productivity. Power Products revenue increased 3% compared to the same period last year. In local currency terms revenue increased 12%, continuing the strong growth trend reported for FY2007. Margins have remained stable, though fluctuating commodity prices continue to be a matter for close management attention. Revenue on Interconnect declined 8% compared to the same period last year, and 3% in local currency terms. The decline was driven by a customer rationalisation programme that was carried out during the second half of FY2006 and the first half of FY2007. On a sequential basis, the division's revenue grew 7% compared to the previous 16 week period. The forward order book is positive and the pipeline is strong, especially with the activities focused on High Speed and Radio Frequency products. Revenue in Wiring Harness is 1% ahead of the same period last year and the operational reorganisation of the division is progressing as planned. We expect to complete this project during the fiscal year at which point we should begin to see the benefits of the cost reductions with an improvement in operating margins. Net debt at the end of the first quarter was 13.4m compared to 15.5m at the same date last year. There have been no other significant changes in the position of the Group in the period since the publication of the Report and Accounts for the 52 weeks ended 1 April 2007. The outlook for the financial year is positive with a strengthening order book and sales pipeline confirming the Board's view that the Group is making strategic progress. - ends - For further information, please contact: Volex Group plc 01925 830101 Richard Arkle, Chairman Heejae Chae, Group Chief Executive Ian Degnan, Group Finance Director Weber Shandwick Financial 020 7067 0700 Nick Dibden / James White This information is provided by RNS The company news service from the London Stock Exchange END