Business
Post-close Update
Post-close Update.
About this update from Volex Plc
[{"type":"text","content":"\n Volex Group PLC\n05 April 2007\n\n\n5 April 2007\n\n Volex Group plc\n (the 'Group' or the 'Company')\n\n Post-close Update\n\nVolex Group plc, the global electrical and electronic cable assemblies group,\nwill announce its results for the 52 weeks ending 1 April 2007 on 11 June 2007.\nAlso, in response to shareholders' request for more proactive investor\ncommunications, the Company will issue a post-close update annually as well as a\ntrading update for the first half performance.\n\n'I am pleased with the progress of the Company since the announcement of the\ninterim results in November 2006. I expect the business to show revenue growth\ncompared to FY 2005/6 before exchange rate movements, though, the weak USD is\nexpected to reduce this level of year on year growth.\n\nThe high price of copper has continued to impact margins in the Powercords\nbusiness, though lower copper prices in the latter part of the year have been\nand continue to be beneficial. The combined impact of copper and the USD means\nthat the Group expects the FY2006/7 results to be slightly below analysts'\nexpectations.\n\nI am confident that the Group's comprehensive restructuring programme is ahead\nof plan. The benefits from the cost reductions will be further realized in the\ncoming year as the productivity and efficiency increases in the new facilities\nand the full year impact is reflected in the results. I believe that the Group\nis on track in the execution of its strategy to deliver growth through new\ntechnologies and products.\n\nThe Group is positive on the outlook for the next financial year for each of the\nbusinesses. Powercords continues to grow strongly driven by new and innovative\napplications such as Apple iPhone. Interconnect is leveraging its global\nposition to gain market share and further expand into higher margin products. In\nparticular, the Company is excited about Interconnect's growth in India driven\nby the investment in wireless infrastructure. Wiring Harness looks encouraging\ndue to the strong growth prospects of the UK Defence Market and the recently\nsecured long-term contract with Rolls-Royce.\n\nI anticipate that the Group will continue to make progress over the coming year\nand I believe that the performance in the next financial year will be in line\nwith Management's expectations.'\n\nRichard Arkle\nChairman\nVol...