RNS Announcement

RNS Number:8016M Volex Group PLC 29 January 2008 29 January 2008 Volex Group plc Trading Update Volex Group plc, the global electrical and electronic cable assemblies company, is providing an update on recent trading performance. The restructuring of our Wiring Harness division is well advanced, however, it has taken longer to deliver the operational efficiencies than we had expected. This has impacted operating margins, with higher costs incurred in maintaining customer service levels. These additional costs are expected to reduce to more normalised levels by the end of the financial year when the restructuring will have completed. We are seeing growth in Interconnect products (particularly from industries such as medical and IT), despite a significant and well publicised downturn in the wireless infrastructure segment. However, the cost to support the ramp up of new products has been higher than we expected in terms of start up costs and inefficiencies. Nevertheless we remain confident that the Interconnect segment represents a significant profit opportunity. As a consequence, whilst sales are expected to be broadly in line with our expectations, operating margins and profit before tax in the second half will be significantly lower than those reported for the first half. Overall revenue growth has accelerated from the first half and we expect that the momentum will continue throughout the rest of the year. We continue to win new projects across all three divisions that will provide a strong base to support the expected growth next year. We are gaining market share with our key targeted customers in market segments which are currently experiencing structural growth. The strategy to focus on key technologies for market leading customers is yielding results. While we remain cautious about the impact of any change in global economic conditions, the Board is broadly comfortable with the trading outlook for the next financial year. We will issue our next interim management statement on February 15th. END Volex Group plc 01925 844601 Heejae Chae, Group Chief Executive Ian Degnan, Group Finance Director Weber Shandwick Financial 020 7067 0700 Terry Garrett This information is provided by RNS The company news service from the London Stock Exchange END