Business
Interim Results
Interim Results.
About this update from Volex Plc
RNS Number : 2454I Volex Group PLC 17 November 2008 17 November 2008 VOLEX GROUP plc Half-yearly results for the 27 weeks ended 5 October 2008 Volex Group plc, the global electrical and electronic cable assembly group, today announces its unaudited half-yearly results for the 27 weeks ended 5 October 2008. First Half Highlights: Strong revenue growth across all three businesses. Significant improvement in Interconnect with 23.8% growth Substantial recovery with operating profits of £2.4m(1) compared to loss of £0.3m in previous six months to 30 March 2008 Working capital reduced by £2.0m despite 22.8% increase in sales Initial benefit of the aggressive efforts to improve profitability coming through: Successfully completed the closure of two facilities Continuing cost reductions through consolidation of overheads Improved operational performance with higher productivity and efficiency Efforts to implement Volex designed solutions are accelerating Power Products maintaining its double digit growth rate at 21.8% through market share gains with key Japanese customers Interconnect India revenue grew 250% driven by increasing telecom infrastructure spend Production in High Speed interconnect ramped up with strong new business pipeline Design wins in Interconnect with all three Chinese telecom equipment manufacturers participating in China's 3G rollout Announced on 22 September 2008 that the Board is investigating the potential to divest the Power Products division Financial Summary: Revenue up 22.8% to £155.1m (2007: £126.3m); in local currency terms, revenue increased 16.1%. Operating profit of £2.4m (2007: £4.6m)(1). Adjusted(1) and reported pre tax profit of £1.0m and £1.1m respectively (2007: adjusted £3.3m; reported £2.8m). Adjusted earnings per share for the period were 0.0p, (2007: 4.1p); and basic earnings per share were 0.2p (2007:3.3p). Cash generated by operations was £8.1m (2007: utilised £4.2m) Net borrowings at 5 October 2008 were £18.6m (30 March 2008: £21.0m) and gearing was 74.9% (30 March 2008: 92.8%). 1. Operating profit after share based payment credit of £0.1m (2007 charge of £0.5m) was £2.5m (2007: £4.1m). The Chairman of Volex, Mike McTighe, commented: 'We are pleased with the solid progress the Group has made during the six months. Our focus on&nb...