("Volex", the "Company", or the "Group")
Half Year Trading Update
Strong performance with revenue momentum maintained and continued margin resilience; full year expectations unchanged
Volex (AIM: VLX), the specialist integrated manufacturer of critical power and data transmission products, today releases a trading update for the 6 months ended
The Group delivered a strong first half result, maintaining the performance and momentum delivered in the second half of FY2025, which underlines the continued resilience of the business.
Revenues are expected to exceed
Electric Vehicles grew strongly year-on-year due to our increasingly diverse range of products and customers. As expected, Medical demand was subdued as customers assessed the implications of lower spend in healthcare and research and adjusted inventory levels accordingly.
Consumer Electricals revenue was similar to H2 FY2025 but down on an organic basis against a strong H1 FY2025 comparative. Off-Highway delivered strong growth, benefiting from a one-off customer project that was delivered in the first half. Complex Industrial Technology grew significantly with data centre demand showing a very strong increase relative to H1 FY2025.
Margin resilience supports continued investment in customer-led growth
Operating profit margin for the first half is expected to remain within the upper half of the Board's through-cycle target range of 9-10%. Our consistent margin delivery validates the Group's ability to navigate regional cost pressures whilst balancing continued investment in capacity and capabilities to support our customers' evolving needs.
The ongoing evolution in the trading environment as a consequence of tariffs remains an opportunity for Volex, and the Group has been working closely with several key customers who in response, are reconfiguring their global production footprints. These activities are strengthening Volex's customer relationships and improving our competitive positioning for the medium term. A small number of new programme launches have been temporarily deferred in both the Complex Industrial Technology and Electric Vehicles end-markets as a result of relocating manufacturing to support our customers, with these projects expected to be delivered in FY2027 and beyond.
Outlook
The Group expects second-half revenues to be broadly similar to the first half, reflecting stable trading across most end-markets.
Volex continues to demonstrate operational discipline, cost control and margin consistency which provides the Board with confidence in making further progress towards its five-year plan targets. With a strong balance sheet, significant undrawn facilities and access to funding, the Group is well-positioned to pursue value-accretive acquisitions that meet our investment criteria.
Structural demand in key markets, a diversified customer base, and continued investment in capability expansion underpin the Group's confidence in delivering strong returns for all stakeholders, despite a challenging macro-economic environment. The Board's expectations for the full year remain unchanged.
Half year results
The Group expects to release its interim results on
-ENDS-
For further information please contact:
Volex plc +44 (0) 1256 442570
Nat Rothschild, Executive Chairman investor.relations@volex.com
Jon Boaden, Chief Financial Officer
Ed Allsopp
Dom Convey
Tom Graham
Jefferies - Joint Broker +44 (0) 20 7029 8000
Philip Noblet
Sam Barnett
Harry Le May
James White
Nicholas Johnson
About Volex plc
Forward looking statements
This announcement contains certain forward-looking statements which have been made by the Directors in good faith using information available up until the date they approved the announcement. Forward-looking statements should be regarded with caution as, by their nature, such statements involve risk and uncertainties relating to events and circumstances that may occur in the future. Actual results may differ from those expressed in such statements, depending on the outcome of these uncertain future events.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the