Volex PLC AGM Statement (2204F)
26 July 2016 - 7:59AM
UK Regulatory
TIDMVLX
RNS Number : 2204F
Volex PLC
26 July 2016
26 July 2016
Volex plc
AGM and Trading Update
Volex plc ("Volex"), one of the world's largest power cord and
harness assemblers, is today holding its Annual General Meeting
during which the Chairman will make the following statement on
trading for the three months ended June 2016.
"As reported on 9 June 2016, and confirmed today, our revenues
have stabilized at close to the level seen in the second half of
FY2016 and restructuring actions have had a positive affect on our
operating margins. I can confirm that Volex was profitable in the
first quarter of FY2017, reversing the loss experienced in the
first quarter of last year.
In both our power cord and cable assembly businesses, our year
to date revenue is marginally ahead of our budget. The mix in the
cable assembly business has been less favorable than during the
same period last year and this further underlines the importance of
the cost saving initiatives we have undertaken. Our pipeline of new
business opportunities is encouraging.
As at the end of June 2016 we have reduced our inventory levels
to $39 million, from a high-point of $48 million at the end of
February 2016. Our target is to reduce our inventory to below $35
million by the end of our first half. The key areas of focus have
been to liquidate excess and obsolete inventory, and to work with
our customers to maintain delivery schedules, in spite of lower
inventory levels.
Since the year-end we have negotiated an exit from an onerous
legacy lease in respect of a former UK-based, production facility.
This transaction will result in total cash-savings of $2.3million
over the next four years. We are also in advanced discussions to
exit a US facility, which if successful, will result in additional
total cash-savings of $1.7million over the next four years. Further
cost savings across our factory footprint have been identified that
will result in additional annualized cost savings, by the end of
this financial year, of at least $3 million.
I would like to thank our employees across the globe for their
dedication, commitment and hard-work, as we improve our
competitiveness and profitability. We have made extensive changes
to the organization and work practices over the last year, and I am
proud of how the people in Volex have responded to this
change."
For further information please contact:
Volex plc
Nat Rothschild, Executive Chairman +65 6788 7833
Daren Morris, Group Chief Financial Officer +44 208 017 3232
Forward looking statements
Certain statements in this announcement are forward-looking
statements which are based on Volex's expectations, intentions and
projections regarding its future operating performance and
objectives, anticipated events or trends and other matters that are
not historical facts. Forward-looking statements are sometimes, but
not always, identified by their use of a date in the future or such
words as 'anticipates', 'aims', 'could', 'may', 'should',
'expects', 'believes', 'intends', 'plans', 'targets', 'goal' or
'estimates'. By their very nature forward-looking statements are
inherently unpredictable, speculative and involve risk and
uncertainty because they relate to events and depend on
circumstances that will occur in the future. There are a number of
factors that could cause actual results and developments to differ
materially from those expressed or implied by these forward-looking
statements. Factors that could cause or contribute to such
differences include, by way of example only and not limited to,
general economic conditions, currency fluctuations, competitive
factors, the loss of one of our major competitors, failure of one
or more major suppliers and changes in raw materials or labour
costs among other risks. Given these risks and uncertainties,
prospective investors are cautioned not to place undue reliance on
forward-looking statements. Forward-looking statements speak only
as of the date of such statements and, except as required by
applicable law, Volex undertakes no obligation to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.
This information is provided by RNS
The company news service from the London Stock Exchange
END
AGMAKADPABKKAOB
(END) Dow Jones Newswires
July 26, 2016 02:59 ET (06:59 GMT)