14th Nov 2013 10:35
LONDON (Alliance News) - Shares in Volex PLC dropped 26% Thursday after it opted not to pay an interim dividend. The electrical cable supplier swung to a pretax loss and saw declining revenues in the 26 weeks to September 29.
Volex posted a pretax loss of USD4.1 million, down from a pretax profit of USD2.2 million in the previous year. Revenue declined to USD196.5 million from USD249.3 million. Declines were due to challenging market conditions in some regions and delays in certain product launches, Volex said.
Volex also incurred USD5.8 million in restructuring costs as it reconfigured its senior management and closed its back office in North America. In July, Volex appointed a new chief executive officer, Christoph Eisenhardt, to replace former CEO Ray Walsh.
Eisenhardt has brought in a restructuring plan, called the 'Volex Transformation Plan' which the company is confident 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.
Separately the company announced that Chief Operating Officer David McKinney was stepping down from the board and leaving the company, after the COO was eliminated.
Geraint Anderson has been appointed as a non-executive director. Anderson is the chief executive officer of TT Electronics PLC, prior to which he was with Cisco Systems Inc.
The company said that, given its current trading position, it would not be declaring an interim dividend for the current year. It paid a 2.0 cent interim dividend in 2012.
Shares in Volex were trading down 26% at 85.93 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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