Volex's profits leap 89%

1st Jun 2011 16:13

Shares in Volex fell lower on Wednesday despite the group revealing a surge in full-year profits and the resumption of its dividend.Following its restructuring in 2010, the electrical and optical interconnect solutions provider reported an 89% jump in pre-tax profit to £13.1m for the year ended 3 April, from £6.9m previously.Total revenue grew by 38% from £228.9m to £316m, driven by strong growth in its four market sectors, Telecoms/Datacoms, Healthcare, Consumer Products and Industrial."We have identified the top-tier customer accounts in each sector for particular sales growth potential so we can deploy Volex resources to take advantage fully of these opportunities and this approach is yielding positive results," said chief executive Ray Walsh.The board has proposed a dividend of 2p per share."The group has continued to make significant progress in 2011, generating sustainable revenue growth and improving the quality of its earnings, following another year of transformation in 2010," said chairman Mike McTighe.---BC