Volex interim profits surge 70%
shares jumped after it announced the reintroduction of its dividend off the back of strong trading performance during the half year.
Volex reintroduced dividends for the first time since 2013, starting with an interim dividend of 1p per share to be paid to shareholders on the register at 10 January 2020.
The company known for its power cords business, said the dividend was made possible “due to the significant re-positioning seen across our business during that period”.
Interim results saw its revenues increase 7.3% to $195.7 million, but its underlying profit before tax rise 70% to $15.3 million.
Shares in Volex increased 6.48% to 115p during Thursday afternoon trading
Nat Rothschild, Executive Chairman, said: “For the first time, the higher-margin Complex Assemblies business made up the majority of our revenue in the first half of FY2020, in accordance with our strategy of repositioning Volex towards higher-margin value-added business.”
The company acquired Servatron, a US-based manufacturer which allowed it to offer more complex integrated manufacturing solutions to its customers.
Mr. Rothschild added: “We are well known as a high-volume manufacturer of power cords but it is our Complex Assemblies business that now leads the way in terms of profit generation.”
Volex said it was confident it would meet its full-year expectations.
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