26 July 2012 – trading update
In the 17 weeks to 26 July, Volex has seen increased demand for its products with the result that revenues in the 2013 financial year will be ahead of expectations. This has led to increased investment by the group which was not expected, including the appointment of over 1,000 additional production staff. As a result, the profit for Q1 of the financial year will be lower than forecast although full year expectations should be met due to the increased profitability generated by these extra revenues. Despite the increased expenditure and higher stock levels that are required to support orders to Q2, the group remains cash positive. This is clearly positive news for the group, although the market response has been muted – the shares are a BUY.