Volex has issued its year end trading update confirming revenues in excess of $605m and an operating profit in excess of $55m that are ahead of consensus FY22E expectations of $581m and $54.2m respectively. The Group continues to trade strongly whilst effectively managing global supply chain challenges and benefits from its proven ability to pass through inflationary cost increases, albeit with a time lag. Demand increased during the year, in particular in the EV sector where sales almost doubled, and there has been improved order visibility with customers looking to secure manufacturing capacity from a reliable and efficient supplier. Alongside investments to support organic growth, four synergistic acquisitions in FY22 have added to the Group’s capabilities. A reassuring update supporting meaningful share price upside from current depressed levels.
