Volex shares soared on Tuesday after it told shareholders it expects full-year profit to come in ahead of market expectations, after a strong opening to its 2027 financial year.
In a trading update issued ahead of today’s annual general meeting, the specialist manufacturer of power and data transmission products reported organic revenue growth of 28% at constant currency in the four months to 31 July, with all five of its end-markets contributing.
Volex shares jumped 20% on the back of the update.
Growth was led by the Complex Industrial Technology division, where data centre demand held at the elevated rate seen at the end of last year, and by rising demand for EV and electrification products. Consumer electricals, off-highway and medical also grew.
The company cautioned that the headline 28% figure partly reflects a softer comparator a year earlier, when data centre programmes were still ramping up, and said growth rates should normalise as the year progresses.
Volex said tight cost control and greater operating leverage were supporting an improved underlying operating margin, in line with its medium-term plan.
During the period, the group completed the buyout of the remaining interest in Kepler SignalTek, extending its medical range into patient-to-device applications.
On the back of the strong start and the operating leverage inherent in the business, the board now expects FY2027 underlying operating profit to beat current market expectations.
Company-compiled consensus points to revenue of around $1.34 billion and underlying operating profit of about $138 million for the year to March 2027.