Volex Share Discussion Threads

[eagle eye] 08/12/2023 10:48

No I'm not, but I do follow what it does!

[strollingmolby] 08/12/2023 08:04

eagle eye - are you invested in Eagle Eye (EYE)??

[eagle eye] 08/12/2023 07:56

The Telegraph needs to protect readers from themselves, so hence the AIM warning.

[strollingmolby] 08/12/2023 07:54

Thanks mrnumpty. I found the article online in full:

Investing in smaller companies comes with greater risk but offers higher rewards

Questor inheritance tax portfolio: we are sticking with these two small-cap holdings following their mixed recent performances

Smaller companies are inherently riskier than larger ones. They lack the geographical, customer and product diversity, as well as financial strength, of their large-cap peers. This means that their progress can stall following disappointing news that would probably be little more than a “bump in the road” for a larger rival.

The high level of risk that comes with small-cap investing is evidenced in the performance of Questor’s inheritance tax (IHT) portfolio. Since its inception in October 2017, one of our holdings has gone bust and several positions are currently trading at significant capital losses amid a challenging economic environment that is weighing on investor sentiment.

Overall, our Aim-focused portfolio is down around 7pc. While this is vastly better than the FTSE Aim All-Share index’s 30pc slump, the FTSE 100 is flat over the same period.

Of course, smaller companies also offer greater reward potential than their larger peers over the long run. The performance of few, if any, large-cap stocks can rival the 274pc capital return of our holding in Volex since it was added to the portfolio in August 2018, for example.

The manufacturer of cable assemblies that are used in a wide range of applications including consumer electricals and electric vehicles recently released upbeat half-year results. Revenue rose by 11pc, while cost reductions led to an improved profit margin. This meant that operating profits increased by 17pc versus the same period of the prior year.

During the first half of the year, the firm acquired manufacturer of electrical wiring harnesses and automotive battery cables, Murat Ticaret, for $195m. The purchase has the potential to catalyse growth and provides cross-selling opportunities as Volex persists with its five-year plan to deliver annual revenue of $1.2bn by 2027 while maintaining an operating profit margin of 9-10pc.

Achieving that sales figure would represent a two-thirds rise versus 2023’s total annual revenue, which equates to an annualised growth rate of roughly 14pc. As a result, the company’s price-to-earnings ratio of 12.9 suggests it offers good value for money ahead of a new era of accommodative monetary policy that is likely to positively catalyse the world economy’s growth rate.

Volex key facts
- Market value: £561m
- Turnover (Apr 2023): $722.8m
- Pre-tax profits (Apr 2023): $45.8m
- Yield (Apr 2023): 1.3pc
- Most recent year’s dividend: 3.9p
- Net debt (Apr 2023): $103.7m
- Return on capital (Apr 2023): 12pc
- Cash conversion ratio (Apr 2023): 104pc
- p/e ratio (Apr 2023): 12.9

Unsurprisingly, the acquisition meant that the company’s net debt increased during the first half of the financial year. It now stands at $174m, up from $104m six months prior, but still equates to a modest net gearing ratio of around 56pc. Alongside a net interest coverage ratio of five, the company appears to have the financial means to overcome an uncertain near-term outlook.

As a small company, Volex is undoubtedly less protected against economic and industry-related challenges compared with its larger peers. But with a wide margin of safety still present despite its share price surge, it continues to offer investment potential based on its medium-term growth targets and ongoing strong performance. Hold.

[mrnumpty] 08/12/2023 07:45

I no longer hold Volex , but it might be of interest here that it is featured in a fairly large article on page 25 of today’s Telegraph , in the Questor HIT Portfolio as a “ hold “ . Whether or not you concur with that advice , the article might cause some movement in the price today .

[mfhmfh] 03/12/2023 17:20

good read across from CTO re: data centres.

IMHO.

[eeza] 03/12/2023 10:34

Tip update by Midas

[iandippie] 01/12/2023 16:26

Blow your what?

[johndoe23] 01/12/2023 10:24

Pair of 50k prints look like buys to me

[igoe104] 30/11/2023 19:10

Lots are cables will be required for this project.

[thebears1] 28/11/2023 13:03

Keep digging

[johndoe23] 28/11/2023 12:51

Seems like any rise in share price for most companies is met with sustained selling/profit taking. Frustrating

[shaker45] 28/11/2023 12:50

Idiot. Filtered

[thebears1] 27/11/2023 19:11

And now you're profiting from it presumably by owning the share And name calling as a last resort because intellect has obviously failed you

[insideryou] 27/11/2023 18:03

Incorrect. Same age. Same college. Lived on the same street. You cretins have no idea what role the family play in the hijacking of humanities perception.

[insideryou] 27/11/2023 18:01

Let those with eyes see and those with ears to hear...It must be a dream living in a bubble of ignorance and legacy media drivel.

[thebears1] 27/11/2023 17:31

Someone needs to occasionally call them out

[valhamos] 27/11/2023 17:28

thebears - please don't feed the trolls!

[thebears1] 27/11/2023 17:15

If your profile is accurate you are 37 years old and he's 52Interesting and seemingly negative views about the Rothschild family, but you're prepared to take the Volex moneyWhere does that leave you exactly?

[pcok] 27/11/2023 11:51

Sadly missed the presentation and will have to wait for the replay. Thanks for the comments. VLX now my biggest holding as tightly run with a well defined vision. Five fingers in five juicy pies has got to be a good defensive buffer as well as a solid growth opportunity. I believe the next 12 months will see a rerate of the share price as the latest acquisition beds into the bottom line.

[redartbmud] 27/11/2023 11:31

Professionally presented with great clarity from both Nat & the FD.
There is a good business plan and they have the staff, infrasrtructure and finance to carry it out.
I see the positives as a long term shareholder.

red

[dicktrade] 27/11/2023 11:29

I would have liked to have seen "the whites of their eyes" TBH, I like to judge on body language when answering the more searching questions :-))
However I got a positive vibe especially about the recent MT acquisition.

[eagle eye] 27/11/2023 11:26

A very informative session on IMC this morning.
Lots of thought gone into business model design and execution.
Volex is well diversified though five key verticals and is progressively moving up the value chain.
Lots of opportunity for growth over the next few years and currently on a prospective PER of x10.