12th Feb 2014 09:32
LONDON (Alliance News) - Electrical cable supplier Volex PLC Wednesday said it expects to report full-year results to be in line with expectations as trading stabilised through the final quarter 2013.
In an interim management statement for the three months ended December 30, 2013, the company said there early signs that the implementation of its transformation plan is on track and beginning to deliver results.
In November, Christoph Eisenhardt, the company's newly appointed chief executive, brought in a restructuring plan, called the 'Volex Transformation Plan' which he hopes will stabilise the business. Under this plan the company will now function as two divisions, a Power Division to be headquartered in Singapore and a Data Division to be headquartered in Silicon Valley.
It followed a period of decline, when the company swung to a pretax losses and revenue fell in the 26 weeks to September 29.
"While there is still work to be done to drive further the efficiency of our design, procurement and manufacturing processes, these early results demonstrate that the group's recently introduced strategy is already being successfully executed," Eisenhardt said in a statement.
The firm said it recently strengthened its balance sheet through a placing and secondary share sale in December which raised USD11 million in cash.
The stock was trading at 120.96 pence Wednesday morning, up 3.34 pence or 2.8%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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