Volex sees interim revenues, profits beating forecasts

Manufacturing services provider Volex said on Thursday that trading had continued to improve since the end of July, with the firm now expecting both interim revenues and profits to beat expectations.

Volex now expects unaudited revenues for the six months ended 4 October to be at least $200.0m, an increase of 2.2% year-on-year, while underlying profits were pegged to be up 25.8% at no less than $20.0m.

The AIM-listed group added that net cash, excluding lease liabilities, was approximately $31.0m as of 2 October.

Chairman Nat Rothschild said: "We enter the final quarter of calendar 2020 in a healthy position. Our geographic and customer diversification continues to provide the business with a high degree of visibility at this time while ongoing demand for consumer electronics remains strong and the global shift to electric vehicles gathers pace.

"Absent another widespread Covid-19 related global lockdown, given the robust performance in the first half of the year, coupled with our strong forward order book position, the board expects to see a strong performance for the year as a whole that will be above current market expectations."

As of 1310 BST, Volex shares had surged 10.04% to 212.38p.