Business
Transition to US Dollar reporting
Transition to US Dollar reporting.
About this update from Volex Plc
[{"type":"text","content":"\n \nRNS Number : 2652O Volex PLC 15 September 2011 \n \n\n \n \nFor immediate release 15 September 2011\nVOLEX PLC\n('Volex' or the 'Group')\nTransition to US Dollar reporting\nRestatement of historical financial information in US Dollars \n \nAs communicated in our annual financial statements for the year to 3 April 2011 and the Interim Management Statement dated 25 July 2011, the Group is changing its presentation currency from Pounds Sterling ('GBP') to US Dollars ('USD'). \n \nThis transition is being made for the following reasons:\n1. Following the disposal of our Wiring Harness division in 2009, the Group no longer operates any manufacturing facilities in the UK and the proportion of GBP denominated business activity carried out by the Group has been decreasing, with the Group's revenues and profits increasingly generated in USD. For the 52 weeks to 3 April 2011, less than 1% of Group revenue was invoiced in GBP.\n2. Over two thirds of the Group's revenue is produced by Group entities with USD as their functional currency. Transition to a USD reporting currency, therefore, better reflects the underlying trading performance, reducing translation related distortions in reported results caused by exchange rate movements. Furthermore the transition to a USD reporting currency better aligns our internal and external reporting; and\n3. USD reporting aids comparison with other international cable and interconnect solutions businesses, which predominantly report in US Dollars.\n \nThe interim consolidated financial statements for the 6 months to 2 October 2011 will be released on 2 November 2011 and will be presented in USD. All subsequent financial information will also be prepared using USD as the presentat...