9th Jun 2016 07:49
LONDON (Alliance News) - Power and data cabling services company Volex PLC on Thursday said it turned to profit in its recently ended financial year, despite revenue sinking, due to a reduction in one-off costs.
Volex said its made a pretax profit of USD1.5 million in the 52 weeks to April 3, compared to a USD7.2 million loss the year earlier. Volex said the turn to profit was down to lower one-off restructuring costs booked in the year and said its cost-cutting programme also delivered benefits to the bottom line.
Revenue, however, dropped 13% to USD367.5 million from USD423.4 million the prior year, as the group saw weaker trading across its divisions and on nearly all its accounts. Volex said it saw weak trading in its PC, laptop and tablet consumer electronics markets, coupled by increased competition for the rest of the business.
In addition, new products launched by key customers were poorly received and end-market demand was weaker than anticipated.
Nat Rothschild, who became executive chairman of the group in November last year, said Volex has started to make progress on operational efficiency and sales effectiveness and said revenue has stabilised at levels seen in the second half of the 2016 financial year.
Volex shares were up 10% to 30.10 pence early Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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