Business
Half-year Report for Volex plc
Half-year Report for Volex plc.
About this update from Volex Plc
[{"type":"text","content":"\n \nRNS Number : 8849G Volex PLC 09 November 2018 \n\n9 November 2018\nVOLEX plc\nHalf year results for the 26 weeks ended 30 September 2018\n'Solid half year performance underpinned by underlying operating profit organic growth of 48% '\nVolex plc ('Volex'), the global provider of cable assemblies, today announces its interim results for the 26 weeks to 30 September 2018 ('H1 FY2019').\n\n\n\n\nFinancial Summary\n\n\n26 weeks to\n30 September\n2018\n\n\n26 weeks to\n1 October \n2017\n\n\n \n% \nChange\n\n\n\n\nRevenue\n\n\n$182.4m\n\n\n$161.4m\n\n\n13.0\n\n\n\n\nUnderlying* operating profit \n\n\n$9.9m\n\n\n$5.5m\n\n\n80.9\n\n\n\n\nStatutory operating profit \n\n\n$5.7m\n\n\n$5.1m\n\n\n12.8\n\n\n\n\nUnderlying* profit before tax\n\n\n$9.0m\n\n\n$4.5m\n\n\n98.2\n\n\n\n\nStatutory profit before tax\n\n\n$4.9m\n\n\n$4.2m\n\n\n16.7\n\n\n\n\nBasic earnings per share\n\n\n2.7c\n\n\n3.9c\n\n\n(30.8)\n\n\n\n\nUnderlying diluted earnings per share\n\n\n5.8c\n\n\n4.3c\n\n\n34.9\n\n\n\n\nNet cash \n\n\n$24.9m\n\n\n$5.8m\n\n\n430.4\n\n\n\n\n* Before adjusting items (non-recurring items and amortisation of acquired intangibles) and share-based payments \n \nOperational highlights\n· Completed the acquisitions of MC Electronics LLC and Silcotec Europe Limited during the half year. Both businesses are performing well and expand Volex's customer base and manufacturing footprint in complex cable assemblies.\n· Significant profit margin improvement in our Power division as a result of management actions to reduce excess capacity in Shenzhen, consolidate PVC production in Zhongshan, exit low margin business and successfully manage input cost inflation.\n· We expect to continue to reduce our production costs over the next 12 months through a focus on automation and product standardisation. \nFinancial highlights\n· Underlying operating profit of $9.9 million is up 80.9% on the prior year. Stripping out the contributions from the newly acquired entities, organic growth was 48.4% reflecting improvements in both the Power and Cable Assembly divisions.\n· Organic revenue growth of 3.5% in the period despite a 32.5% reduction in revenue with our largest Power customer. Growth was seen in virtua...