Volex Discussion

the Times today

stanierpacific — Fri, 13 Apr 2012 16:36:00 GMT

Encouraging review today By stanierpacific

Investor Presentation

WellWadded — Mon, 13 Feb 2012 17:17:00 GMT

Well worth a listen & interesting to hear Apple, who recently added Volex to their specified supplier list , now clearly being referred to as their biggest client . Also given that those with power cord requirements eg US Heathcare providers, are increasingly looking towards Halogen Free products where we have good capability the future continues to look positive. One to tuck away. By WellWadded

Stock to Watch: Volex

SpikeyDT — Fri, 20 Jan 2012 08:03:00 GMT

Stock to Watch: Volex
By Edmond Jackson | Fri, 20/01/2012 - 00:00
http://bit.ly/xlX7ek By SpikeyDT

Singer Capital-Buy 340P

SpikeyDT — Tue, 06 Dec 2011 17:29:00 GMT

From UK-Analyst.com: Tuesday 6th December 2011
http://uk-analyst.com/shop/page-home/action-home.show_free_content

Broker Notes

Singer Capital initiated coverage of Volex (VLX) with a "buy" recommendation and target price of 340p. The broker approves of the group's transition from a contract power cord manufacturer into a designer of these products for customers in telecommunications, datacoms and healthcare. Singer believes that this move will drive earnings growth over the medium term, benefiting from longer revenue streams and higher margins. The broker also points out that bolt-on acquisitions are also a possibility, using its new 150 million dollar (95.9 million pound) accordion facility. Volex shares fell 4.5p to 270.5p. By SpikeyDT

latest issue Investors Chron

stanierpacific — Mon, 14 Nov 2011 12:27:00 GMT

Positive review in IC 2266 By stanierpacific

Edison Investment Research

SpikeyDT — Wed, 09 Nov 2011 14:50:00 GMT

Volex - Hitting the marks Click for report
Wed, Nov 9, 2011 at 3:48 PM
http://www.edisoninvestmentresearch.co.uk/researchreports/volex091111update.pdf

Wider growth sentiment remains jittery but Volex management continues to hit the marks, financially and strategically, that it has previously outlined. Market guidance is unchanged and ongoing double-digit earnings growth prospects are very much intact, in our view. The current rating does not reflect this, but maintaining this strategic momentum is likely to translate to a fuller valuation in due course.

Volex is a leading global provider of power products and interconnect cable assemblies. It supplies to large OEMs of consumer electrical and electronic devices, data and telecom equipment and healthcare and industrial products.
Year
End Revenue
($m) PBT
($m) EPS
(c) DPS
(c) P/E
(x) Yield
(%)
03/10 365.4
16.4
23.9
0.0
19.9
N/A
03/11 490.0
23.3
33.4
3.2
14.3
0.7
03/12e 525.7
28.0
40.1
5.0
11.9
1.2
03/13e 555.2
34.5
48.9
5.4
9.8
1.3
Volex is a research client of Edison Investment Research By SpikeyDT

Impressive progress for Volex

SpikeyDT — Mon, 07 Nov 2011 10:56:00 GMT

Impressive progress for Volex
By Malar Velaigam , 07 November 2011
http://www.investorschronicle.co.uk/2011/11/07/shares/news-and-analysis/impressive-progress-for-volex-gs4XZOaP1Z1AtdiXpReEZL/article.html

Company calendar
Stockbuilding ahead of Christmas has helped power cord and interconnect cable maker Volex deliver decent half-year figures. Chief executive Ray Walsh says that he remains confident, despite the current market turmoil, and has therefore reinstated the group's half-year dividend pay-out.
This stockbuilding activity has boosted the core consumer business in particular, which generates 63 per cent of group sales – revenues here soared 12 per cent in the period to $169.9m (£106.2m). Plans are now in place to extend relationships with existing premium customers, too, including Apple, HP and Sony, in order to cross-sell other cable and power-related products.
Meanwhile, continued manufacturing automation has propelled growth in the industrial unit and divisional revenues grew 27 per cent to $20.3m. There has also been impressive growth in the healthcare division, where sales rose 30 per cent to $24.3m. Weak conditions in India, however, hampered growth in the telecoms business, where sales inched up just 7 per cent to $56.2m. Spending on telecoms hit a hiatus in India following the 3G auction last summer although, strip out India, and sales from the unit grew 13 per cent.
Charles Stanley expects full-year pre-tax profits of $26.9m, giving EPS of 23.66p ($22.9m and 20.87p for 2011).
VOLEX (VLX)
ORD PRICE: 270p MARKET VALUE: £168.7m
TOUCH: 265-273p 12-MONTH HIGH: 384p LOW: 230p
DIVIDEND YIELD: 1.1% PE RATIO: 15
NET ASSET VALUE: 60¢ NET DEBT: 32%
26 weeks to 2 Oct Turnover ($m) Pre-tax profit ($m) Earnings per share (¢) Dividend per share (¢)
2010 238 10.6 14.7 nil
2011 271 10.4 15.0 1.50
% change +14 -2 +2 –
Ex-div: 4 Jan
Payment: 17 Feb
£1=$1.60
IC View:

A slowdown in consumer spending could yet hit the group's consumer business, but Volex has, nonetheless, reported a decent performance. So, with a not so demanding forward PE of 11, the shares look long-term good value. By SpikeyDT

The Independent-Sharewatch,Buy....

SpikeyDT — Thu, 03 Nov 2011 06:16:00 GMT

NIKHIL KUMAR THURSDAY 03 NOVEMBER 2011
http://www.independent.co.uk/news/business/sharewatch/investments-rising-gold-prices-will-keep-randgold-on-track-despite-increasing-costs-6256325.html

Volex

OUR VIEW: BUY

SHARE PRICE: 283.5P (-4.5P)

Volex describes itself as a "leading provider of interconnect solutions and power products". That loosely translates to Volex being a leading, er, lead provider. The group supplies power cords and specialist cables to consumers to connect their electronic devices such as televisions as well as their fridges, and DIY tools. While the consumer arm makes up 63 per cent of sales, Volex also provides leads to companies in telecoms, healthcare and industrial sectors.

Yesterday, it reported a 14 per cent bump in first half revenues to $270.7m with operating profits up 16 per cent to $14.9m and growth across all of its divisions. Chairman Mike McTighe added it was on track to hit full-year forecasts.

With a history that stretches back over 100 years, it has grown to a company that currently has a market cap of around £180m. The future also looks pretty solid; there are good opportunities for growth, management has a handle on costs and the valuation looks relatively undemanding at 12.2 times forward earnings. By SpikeyDT

Healthcare division lifts profits at Volex

SpikeyDT — Wed, 02 Nov 2011 21:34:00 GMT

http://www.ft.com/cms/s/0/e85ac820-056e-11e1-8eaa-00144feabdc0.html#ixzz1caeFf2rU

November 2, 2011 5:49 pm
Healthcare division lifts profits at Volex
By Alexandra Stevenson

A fast-growing healthcare division lifted profits at Volex, the electric and telecom cables maker, in what its chief executive called its “best performance in a decade”.
Upbeat half-year results were also driven by the company’s consumer division, which provides power cords to Apple, off steady iPad and iPhone sales.

Volex reported adjusted operating profits of $14.9m, a year-on-year increase of 16 per cent. Just three years ago Mike McTighe, Volex’s chairman, said the company was in “corporate triage”, but since then it has undergone a restructuring.
Ray Walsh, chief executive, said management was closely watching developments in Europe and hoped to see sustained improvement in the US. “That being said, we don’t have any indication of clients pushing orders down,” he said.
The UK-based company, which has consumer, telecoms, healthcare and industrial divisions, said group revenues increased by 14 per cent to $270.6m.
Revenues in the company’s healthcare business jumped 30 per cent, driven by the launch of a digital broadband MRI scanner with Philips earlier this year.
Its consumer division, accounting for around 60 per cent of revenues, also recorded double-digit revenue growth, due largely to the company’s development of next-generation connectors using halogen-free material.
The company uses a share-based payment scheme to incentivise managers. After this charge, the company’s pre-tax profits dipped 3 per cent to $10.3m while diluted earnings a share rose 4 per cent to 14.4c. The company declared an interim dividend of 1.5c a share.
Mr McTighe implemented a turnround plan in 2008, which involved replacing the senior management team and investing in manufacturing, adding to capacity for high-speed copper processes and IT infrastructure.
Capital expenditure grew by 92 per cent to $4.8m in the first half, which the company said matched its strategy.
Thomas Rands, analyst at Peel Hunt, said he was not worried about the company’s high spending.
“The balancing act now is to increase revenues while increasing margins,” he said.
Volex’s gross margins were down 0.5 per cent from last year to 19.2 per cent. This compares with industry peers such as Amphenol, which had a gross margin of 32.6 per cent, Molex’s 30.3 per cent, and Tyco’s 37.7 per cent.
Volex said its peers had greater scale and a stronger product mix.
The company’s shares, trading at 30.5p three years ago, fell 1.6 per cent to 283.5p on Wednesday.
By SpikeyDT

Peel Hunt-Initiates/Starts Buy 365P

SpikeyDT — Tue, 18 Oct 2011 07:37:00 GMT

http://www.brokerforecasts.com/broker-notes/

Peel Hunt Volex Group PLC 18/10/11 08:27
Initiates/Starts
Buy
2
365.00
365
2 By SpikeyDT

Your Favourite Potential Multibaggers....

SpikeyDT — Fri, 19 Aug 2011 11:51:00 GMT

Our partner Aminex drill soon !!

Your Favourite Potential Multibaggers
http://www.fool.co.uk/news/investing/2011/08/19/your-favourite-potential-multibaggers.aspx
BY
David Holding

Published in Investing on 19 August 2011 By SpikeyDT

Big drop today

PervisVanPeters — Thu, 04 Aug 2011 14:45:00 GMT

Yowzers, anyone got any idea what's going on? General sentiment re global ecomony, copper prices maybe?

PVP By PervisVanPeters

Edison Investment- Strategic intent

SpikeyDT — Fri, 29 Jul 2011 13:36:00 GMT

Volex (LON:VLX) - Strategic intent
Friday, Jul 29 2011 by Edison Investment Research
http://www.stockopedia.co.uk/research/strategic-intent-58622/
http://www.edisoninvestmentresearch.co.uk/?ACT=18&ID=5488

Jul 29th 2011 - Edison Investment Research today published a report on Volex (VLX.L, LSE:VLX, LON:VLX) entitled "Strategic Intent". In summary, the report says:

Volex has a clear game plan to raise gross margins. Underlying progress to date has been made and, as input cost pressures recede, this should become more apparent. As evidence of greater customer engagement gathers, this will further endorse group strategy. Volex is on a significant growth trajectory and we feel the rating does not fully reflect prospects. By SpikeyDT

Re: buying opp. ?

oldjoe1 — Tue, 26 Jul 2011 07:17:00 GMT

Overall, the risk-reward profile looks to favour upside, with a return to 350p and better. Volex is well-positioned to key drivers of consumer electronics change and with sensible diversity, now seeing the rewards of its repositioning which should have further to run. While forecasts already assume significant growth over the next 18 months or so, its rating is fundamentally modest - yet should improve to the lower mid teens at least, implying nearer 400p as a medium-term target.

By oldjoe1

Re: buying opp. ?

oldjoe1 — Tue, 26 Jul 2011 07:13:00 GMT

http://www.iii.co.uk/articles/16392/stock-watch-volex

Stock to Watch: Volex
Tue, 26/07/2011 - 00:00 | Edmond Jackson

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Strong revenue growth continues at Volex (VLX), the global provider of electrical and optical connecting solutions, which derives just over half its sales from Asia - serving various technology providers.

Its latest Interim Management Statement (IMS) cites like-for-like normalised revenue up 10% for the 16 week period to 25 July, a firm gross margin of 19.0% leading to a 21% rise in operating profit to £4.1 million.

Adverse currency translation clipped the reported revenue/profit rises to 2% and 3% respectively but in underlying terms this is impressive growth in challenged times. It is broad based across four sectors - consumer, telecom/datacom, healthcare and industrial - and could have shown 12% revenue growth excepting delays in the recovery of an Indian business.

This affirms continued success with a recent restructuring after Volex reported a 64% rise in operating profit on revenue up 38% and earnings per share up 130%, in prelim results to 4 April, announced early June. Now Volex is better positioned, it should be worth watching for further progress.

It also shows how "small cap share" does not necessarily mean a high-risk investment: Volex has withstood the downturn relatively well, with normalised pre-tax profit slipping only slightly from £5.1 million to £4.8 million over 2007-08, otherwise profit and earnings per share grew strongly to £10 million and 14.5p by 2010. Management says it continues to improve the sales mix with new products also efficiencies towards improving the margin.

Company REFS shows recent broker projections for about £18 million normalised pre-tax profit and earnings per share of 24p in the current financial year to 1 April 2012, rising to about £23 million and 30p respectively in 2012/13. The main risk factor looks to be general fears of a double-dip recession although management appears to have sufficient visibility of orders to assert in the IMS it is confident of meeting market forecasts for the current year.

With consumer products representing nearly two-thirds of revenue and profit, growth in internet-connected TV, living-room gaming consoles, tablet computers and smart phones are key drivers helping withstand recession. As was the experience of the early 1990s recession, it is possible for a few companies to stand out when they are geared to a technology watershed especially. It helps explain Volex's 41% increase in revenue to £196 million for its consumer products side in the last financial year, although industrial also did very well to double its revenue to £22 million.

Top-line progress like this really classes Volex as a growth share although the market is likely to be wary of cyclicality in electrical components/connectors (as we have seen with Premier Farnell (PFL) and Electrocomponents (ECM)) - which most likely explains the modest, forward price-earnings multiple of about 13 times falling to 10.5, with the shares currently at 320p.

Edmond covered the fortunes of Premier Farnell in a recent Stock to Watch.

Volex's financial track record and forecasted earnings growth also qualify the shares for the price-earnings to growth - or PEG - factor, which works out at an appealing 0.4 times. Generally with growth shares, a ratio less than one is considered attractive. It appears the company is benefiting "top-down" from this growth trend in consumer electromics, and "bottom-up" from a restructuring last year - to achieve a more streamlined business according to market sector and functional lines.

"We can now implem By oldjoe1