Volex 1Q Operating Profit, Revenue Up, To Meet Or Exceed FY Guidance

27th Jul 2010 07:35

LONDON (Dow Jones)--Volex Group PLC (VLX.LN), the global electrical and electronic cable assemblies group, Tuesday reported a 33% rise in first quarter fiscal 2011 operating profit on revenue 39% higher at GBP75 million and said it is comfortable to will meet or exceed the previous full year guidance. MAIN FACTS: -Operating profit for 16 weeks ended July 27 GBP4.0 million, up 5% on Q4 FY10 and up 33% on Q1 FY10 -1Q revenue GBP75 million, up 23% on Q4 FY10 (19% on constant currency basis) and up 39% on Q1 FY10 (33% on constant currency basis) -Gross margin of 19.7%, 0.2 points down on previous quarter and 0.5 points ahead of same quarter last year -Net debt of GBP5.0 million at end of first quarter, a GBP2.6 million improvement since the end of last financial year and GBP12.8 million better than at the end of Q110. -All four of sectors (Telecom/Datacom, Healthcare, Consumer and Industrial) have experienced double digit percentage growth rates quarter-on-quarter with revenue growth in the Consumer and Telecom/Datacom sectors particularly strong. -While all sectors have benefited from the improving economic environment, incremental revenue from new products and organic sales initiatives has also been a significant feature. -Group maintains its focus on increasing the proportion of value added Volex content in its products and on improving manufacturing efficiencies. -Voles is also targeting strategic product development and new account opportunities in order to capitalize on improved trading conditions and to generate a platform for sustained growth and margin improvement. -Shares closed Monday at 180.5 pence valuing the company at GBP102.71 million. -By Ian Walker, Dow Jones Newswires; 44-20-7842-9296; [email protected] (END) Dow Jones Newswires July 27, 2010 02:35 ET (06:35 GMT)