We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Volex Plc | LSE:VLX | London | Ordinary Share | GB0009390070 | ORD 25P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-2.00 | -0.66% | 301.00 | 300.50 | 303.00 | 306.00 | 298.00 | 300.50 | 154,455 | 11:11:57 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Electronic Components, Nec | 722.8M | 36.8M | 0.2031 | 14.92 | 548.9M |
TIDMVLX
RNS Number : 3549J
Volex PLC
27 June 2017
27 June 2017
Volex plc
Publication and posting of Annual Report and Accounts 2017 & Notification of Annual General Meeting
Volex plc (the "Company"), the global provider of power and data cabling solutions, announces that it has posted to shareholders its Annual Report and Accounts 2017 (the "Annual Report") and the Notice of Annual General Meeting, which is to be held at Meeting Room 2, The Novotel Reading Centre, 25b Friar Street, Reading, RG1 1DP on 25 July 2017 at 2.00 p.m. (the "AGM"), together with a Form of Proxy for use in connection with the AGM.
A copy of the Annual Report and Form of Proxy is available on the Company's website, www.volex.com and will shortly be submitted to the UK Listing Authority's National Storage Mechanism and will then be available at www.hemscott.com/nsm.do.
In compliance with the Disclosure and Transparency Rules (DTR) 6.3.5, the following information is extracted from the Annual Report and should be read in conjunction with the Company's Preliminary Announcement issued on 8 June 2017, both of which can be viewed at www.volex.com. Together these constitute the material required by DTR 6.3.5 to be communicated to the media in unedited full text through a Regulatory Information Service.
This material is not a substitute for reading the Annual Report in full and page numbers and cross-references in the extracted information below refer to page numbers and cross-references in the Annual Report.
Statement of the Directors' responsibilities
The following statement is repeated here solely for the purpose of complying with DTR 6.3.5. This statement relates to, and is extracted from, page 52 of the Annual Report. Responsibility is for the full Annual Report not the extracted information presented in this announcement or the Preliminary Results Announcement.
The Directors of Volex plc (the 'Company') are responsible for preparing the Annual Report, the Directors' Remuneration Report and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have prepared the Group and parent Company financial statements in accordance with International Financial Reporting Standards ('IFRSs') as adopted by the European Union. In preparing these financial statements, the Directors have also elected to comply with IFRSs, issued by the International Accounting Standards Board ('IASB'). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of the profit or loss of the Company and Group for that period. In preparing these financial statements, the Directors are required to:
-- Select suitable accounting policies and then apply them consistently; -- Make judgements and accounting estimates that are reasonable and prudent;
-- State whether applicable IFRSs as adopted by the European Union and IFRSs issued by IASB have been followed, subject to any material departures disclosed and explained in the financial statements; and
-- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and enable them to ensure that the financial statements and the Directors' remuneration report comply with the Companies Act 2006 and, as regards the Group financial statements, Article 4 of the IAS Regulation. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
The Directors consider that the Annual Report and Accounts, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company's performance, business model and strategy.
Each of the Directors, whose names and functions are listed on page 26 confirm that, to the best of their knowledge:
-- The Group and Company financial statements, which have been prepared in accordance with IFRSs as adopted by the EU, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group;
-- The Strategic Report, on pages 4 to 26, includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal risks and uncertainties that it faces; and
-- The Annual Report and financial statements, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the Group's performance, business model and strategy.
Principal Risks
A description of the principal risks that the Company faces is extracted from pages 21 to 23 of the Annual Report.
The table below summarises the Group's principal risks and how they are managed centrally. The Board considers these the most significant risks that could materially affect the Group's financial condition, performance, strategies and prospects. The risks listed do not comprise all risks faced by the Group and are not set out in any order of priority. Additional risks not presently known to management, or currently deemed to be less material, may also have an adverse effect on the business.
Risk Possible Impact Risk Mitigation Activities ----------------------- ------------------------------ -------------------------------- Strategic ----------------------- ------------------------------ -------------------------------- Competitor With the presence The Group intends Risk of competitors to focus on markets that are vertically and customers where integrated, financially we can differentiate stronger and on factors other than with ability price including engineering to invest in know-how and quality. newer technology and capabilities, During the year, various the Group is projects have been highly susceptible undertaken to optimise to increased manufacturing efficiency competition and and identify process price pressures. improvements with the aim of driving The Group's business cost reductions and and future results cash generation. may be adversely impacted if it In the coming year, is unable to it is planned that compete adequately the joint venture and secure new Volex has entered business in the into with Joinsoon markets in which Electronics Mfg Co it operates. Ltd will begin producing lower cost raw materials for Volex to use in its product offering, thereby becoming more cost competitive. ----------------------- ------------------------------ -------------------------------- Customer Concentration With the Group's The decline in revenues Risk top ten customers with our largest customer accounting for had a significant 64% (2016: 68%) impact on Group performance. of total revenue, Whilst the concentration the Group is of business with this exposed to customer customer had long concentration been highlighted a risk where its risk, the business performance, was unable to diversify financial condition the customer base and future prospects due to an uncompetitive may be significantly cost structure, high impacted if there staff turnover and is a shift in slow response times. allocation on a key customer During the year the account. above obstacles have
been addressed and The Group's largest a new sales strategy customer accounted developed. We are for 18% of total optimistic that this revenue, down new strategy will from 26% in the lead to new revenue previous year. opportunities and a further reduction in reliance on the historic customers. We have already received firm purchase orders from a number of new premium brand customers and we hope to scale these accounts in FY2018. ----------------------- ------------------------------ -------------------------------- Operational ----------------------- ------------------------------ -------------------------------- Supplier Dependency The Group's delivery Single-source supplier Risk of the strategy risks are identified is dependent during the year and on the availability where operationally and timely receipt feasible, dual sources of raw materials. and local multi-sourcing As it continues for key materials to be heavily and critical components reliant on single-source are being developed. suppliers for key materials Strategic relationships or critical components, with key suppliers any disruptions are established to may impact production enable flexible sourcing and the Group's arrangements that ability to meet are balanced with customer commitments, appropriate levels win future business of inventory. or achieve operational The Group continues results. to monitor financial and operational viability Disruption to of key suppliers periodically. key supplies may be a result As noted above, the of insolvency joint venture agreement of the supplier, Volex has entered scarcity of materials into should reduce or the suppliers' the reliance on several inability to Chinese raw material meet our standards suppliers. such as quality, reliability and cost reductions. In turn, the Group's inability to drive cost reductions may also result in a lack of competitiveness. ----------------------- ------------------------------ -------------------------------- Quality Risk Our customers The Group recognizes specify quality, that the quality of performance and our products is critical. reliability standards. Quality assurance Should our quality processes are embedded systems fail, in the entire supply the risk of customers chain and every stage receiving unsafe, of the manufacturing faulty or non-performing process across all products is increased. sites, supporting Consequently, compliance with safety the Group may and customer quality experience delays standards. in shipment and product rework New moulds, tooling or replacement and technology are costs. acquired as part of our quality continuous Subsequent customer improvement programme complaints, warranty to sustain high quality claims and product output. recall or replacement may result in The Group has developed reputational new internal KPI's damage and reduced that include quality allocation. metrics and which will be reviewed by the Board. ----------------------- ------------------------------ -------------------------------- Product Development Power and data Close communication to Combat Disruptive cable markets with all key customers Technology are impacted on their product roadmap by disruptive takes place. Volex technologies continually investigates which include partnerships/co-operation wireless data for technology gaps. transmission, improved battery During the year the lives and new engineering function industry standards has been reorganized such as USB-C. to assist in the better sharing of information Failure to adapt and knowledge. Now could lead to all engineering functions the loss of key including R&D engineers, accounts. production engineers (responsible for the Volex may not running of the lines be leveraging and tooling) and "field advancements application engineers" in technology (engineers close to in its business customers who are model to achieve responsible for feeding or sustain competitive back challenges faced) advantage. report up to a single head of engineering. Under the new long term strategy there will be significant investment in the engineering function. ----------------------- ------------------------------ -------------------------------- Key People After several The fact that our years of poor Executive Chairman performance and is the largest shareholder a major restructuring provides considerable the Group is assurance to other more reliant stakeholders that than ever on Executive management's the small number goals are aligned of key executives with their own. Other who are leading key managers have
the turnaround. been given PSP awards, allowing them to participate Until we can directly in the impact establish a more of the turnaround. sustainable business model and organisation The Group has recently this risk will added senior sales remain and therefore and operational expertise the turnaround in Asia and North itself is at America. risk. ----------------------- ------------------------------ -------------------------------- Financial ----------------------- ------------------------------ -------------------------------- Going Concern The Group has The Group reviews a $30 million its performance against multi-currency budget to ensure that revolving credit funding is balanced facility which against economic results. has been renewed to June 2019. The Group continues The facility to maintain an open is subject to and transparent dialogue a quarterly assessment with the facility of two financial providers to ensure covenants, namely that they are well the leverage aware of the developments covenant and in the business. interest covenant. During the year, a Whilst the Group's number of loans drawn forecasts have under the senior credit indicated that facility have been both covenants repaid and net debt will be met, has reduced. any unforeseen downturn may The Group's forecasts result in failure indicate that it will to meet the covenant meet the covenant test. Consequently, tests under the facility. this may result If performance was in an 'event not in line with the of default' where forecast, the Group immediate repayment has a number of mitigating is requested. actions that could be implemented. ----------------------- ------------------------------ -------------------------------- Copper Price Many of the Group's Copper price movements Volatility products, in are continuously monitored Risk particular power and where appropriate, cords are manufactured are reflected in the from wire components pricing of our products. that contain Whilst copper prices significant amounts are fixed quarterly of copper. Wire with major suppliers components accounted based on average LME for approximately rate over the prior 50% of the Group's quarter, approx. 55% purchases for of our power cord the year. As related revenues are copper price covered by copper volatility is clauses which provide the single largest for quarterly adjustments commodity price to our selling prices exposure facing based on our material the Group and costs. driven by market volatility, failure The Group maintains to manage the forward copper purchase impact of copper contracts extending price changes out twelve months may result in and are refreshed erosion of profit on a rolling monthly margins and loss basis. of competitive advantage. Whilst copper price movements are passed on to customers, delays in passing through the costs may create short term volatility in the Group's gross margins. ----------------------- ---------------------------- ---------------------------------- Foreign Exchange The Group is The group's central exposed to currency finance function closely transactional monitors the exposure risk relating to key currencies to day-to-day such as the Chinese sales and purchases Renminbi, EURO and with customers Pound Sterling. Hedging and suppliers. is undertaken where appropriate. Reported results of overseas subsidiaries Billing currencies are subject to have been adjusted translational to achieve a high risk which may level of natural hedging cause volatility where possible. in earnings and the balance sheet. In order to minimise foreign exchange fluctuations The Group's financial in the income statement results may be of the Group, drawdowns impacted by the on the senior credit fluctuation of facility in currencies the US Dollar other than the functional against foreign currency of the drawing currencies, exchange entity will be treated rate controls where possible as or regulatory a net investment hedge. restrictions on transfers The Group Treasury of funds. Policy Statement sets out procedures on exchange rate risk management. ----------------------- ---------------------------- ---------------------------------- Legal, Tax The Group is The Group takes an and Regulatory subject to diverse uncompromising approach Compliance laws and regulations towards non-compliance. Risk in the global The group's Code of markets in which Conduct provides a it operates, framework to general particularly compliance and governance in certain territories policies that have where the risk been established to is elevated due ensure compliance to jurisdictions with laws, regulations with immature and standards. business practices and/or systems. The Group continually monitors developments The areas include in applicable laws but are not limited and regulations in
to those related the jurisdictions to product safety, in which it operates environmental, and external advice health and safety, is sought where necessary. export controls or customs, tax Regular monitoring laws and anti-bribery programs are in place and corruption. at all sites to enable continuous improvement. Non-compliance with legislation Irrespective of our or other regulatory own internal controls requirements and advice provided may compromise by external consultants, the Group's ability we have noted in the to conduct business past year that certain in certain jurisdictions. taxation authorities They may expose facing local funding the Group to shortfalls are becoming potential reputational more aggressive in damage, financial their application penalties and/or of tax law to the suspension of point of imposing business activities, significant penalties any of which on minor offences could have a and even in some cases material adverse imposing tax demands effect. that have little basis in the local tax rules. In these instances, we continue to engage with local independent consultants and on their advice appeal these findings to a higher office. ----------------------- ---------------------------- ----------------------------------
For further information please contact:
Volex plc
Daren Morris, Chief Financial Officer and Company Secretary
+44 (0)208 017 3240
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACSBCGDLXXDBGRR
(END) Dow Jones Newswires
June 28, 2017 02:00 ET (06:00 GMT)
1 Year Volex Chart |
1 Month Volex Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions