Updates & Ideas

Volex - Investment driven by localisation

August 2024

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Volex (VLX; 349p) has just reported its FY24 results and it’s turned out to be a cracker of a year. Its traditional business supplying power cords for laptops and white goods may have been languishing but the group is doing well from the newer areas targeted by chairman Nat Rothschild, including data centre cables, cables for medical equipment and the newly set up Off-Highways division. As it was, Volex finished FY24 with sales of US$912.8m, up 26%, of which organic growth was 6.9%. Adjusted pretax profit rose 31% to US$77.1m, while eps climbed 12% to 33.7 cents. Free cash flow stood at US$18m, leaving net debt at US$121m. This period saw the Medical and Complex Industrial Technology divisions as the stand out performers in term ...

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Kinovo - Finally eliminates a management distraction

Synectics - Best ever blended margin achieved

Volex - To benefit from Trump’s lower US tax and autonomous vehicles (December 2024)

Volex - Organic sales and margins ahead of expectations (November 2024)

Volex (May 2024)

Volex (December 2023)

Volex (November 2023)

Volex - Murat Ticaret deal completes earlier than anticipated (September 2023)

Volex - Transformational deal produces 14% eps upgrade (July 2023)

Volex - Trading ahead of expectations (May 2023)

Volex - Outperforming the market (December 2022)

Volex - Strong Q1 trading (September 2022)

Volex - To bust a billion within five years (July 2022)

Volex - EV demand helps it beat expectations (May 2022)

Volex - Enters EV infrastructure segment (December 2021)

Volex - Two directors buy shares (November 2021)

Volex - Earnings accretive US defence acquisition (September 2021)

Volex - Forecast up 5% as Medical and EV jump (August 2021)

Volex - Data centres and EV sales +38% and +193%, respectively (July 2021)

Volex - Significant beat on FY21 estimates (May 2021)

Volex (March 2021)

Volex - Three deals being worked on (January 2021)

Volex - Canaccord sets 398p price target (December 2020)

Volex - "Materially ahead of expectations"- results due on 12 November (November 2020)

Volex (August 2020)

Volex (May 2020)

Volex - High growth and exciting (December 2019)

Volex - Five quarters of improvement (June 2010)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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