Trading Statement
06 Marzo 2003 - 1:02AM
UK Regulatory
RNS Number:3600I
Volex Group PLC
06 March 2003
TRADING UPDATE (Subject to Audit)
Volex Group p.l.c., the world's leading independent
producer of electronic cable assemblies and electrical
power cords, announces an update on its trading position
for the year to end March 2003.
The Group has obtained new business in the second half
year, particularly in Eastern Europe and Asia, but this
has not offset the continued and greater than expected
underlying decline in the Group's traditional markets,
particularly in the telecommunications and data markets.
Whilst order books have continued to strengthen during
our last quarter, the translation into firm customer
delivery schedules has lagged behind our expectations and
the outlook remains difficult to predict. However, the
Group continues to gain share in its major markets.
Sales for the full year are, therefore, expected to be
approximately 10% below current market expectations.
The second half-year operating profit will benefit from
further substantial reductions in overhead costs. The
Group consequently anticipates achieving a small
operating profit for the full year (before goodwill
amortisation).
The Group anticipates a positive cash flow in the second
half year with net debt at the year end in the region of
#42m (subject to no further material exchange rate
changes) compared with #50.4m at last year end and #46.6m
at the half year end.
In light of the time lag in order off-take, the Company
will be reviewing its current trading position and
covenants with its bankers. On the basis of the Group's
recently completed business plans, it anticipates it will
continue to be able to make its scheduled payments to its
bankers in the next two years.
For further information, please contact:
Volex Group p.l.c. 01925 830101
Dom Molloy, Chairman
John Corcoran, Group Chief
Executive
Weber Shandwick Square Mile 020 7067 0720
Chris Lynch
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTNKPKPFBKDCNK