Volex backs FY expectations as it hails 'strong' first half

(Sharecast News) - Volex hailed a "strong" first-half performance on Thursday as it backed its expectations for the year.

In an update for the six months to 30 September, the AIM-listed specialist integrated manufacturer of critical power and data transmission products said it had maintained the performance and momentum delivered in the second half of FY2025, "which underlines the continued resilience of the business".

Revenues are expected to exceed $575m, with organic revenue growth of at least 11%. This is driven by the group's product offering and "long-standing" relationships with blue-chip customers across five end-markets.

Volex said Electric Vehicles grew strongly year-on-year due to its "increasingly diverse range of products and customers".

However, Medical demand was subdued as expected as customers assessed the implications of lower spend in healthcare and research and adjusted inventory levels accordingly.

Revenue in Consumer Electricals was similar to the second half of last year, but down on an organic basis against a strong first-half comparative.

Volex said Off-Highway delivered strong growth as it benefited from a one-off customer project that was delivered in the first half. Complex Industrial Technology grew "significantly", it said, with data centre demand showing a very strong increase relative to the first half a year earlier.

Volex said second-half revenues were set to be "broadly similar" to the first half, reflecting stable trading across most end-markets.

"Volex continues to demonstrate operational discipline, cost control and margin consistency which provides the board with confidence in making further progress towards its five-year plan targets," it said.

"With a strong balance sheet, significant undrawn facilities and access to funding, the group is well-positioned to pursue value-accretive acquisitions that meet our investment criteria," it said, adding that full-year expectations remain unchanged.

At 0910 BST, the shares were up 7.2% at 379.50p.