Volex records higher profit on strong organic growth; hike dividend

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Volex PLC on Thursday reported a jump in profit for financial 2022, on strong organic growth, and lifted its payout to shareholders.

Shares were trading 3.0% lower at 233.33 pence each on Thursday morning in London.

The Basingstoke, England-based electronic components maker reported a pretax profit of $36.2 million in the year that ended April 3, reflecting a 23% increase from $29.4 million the year before.

This was on revenue growth of 39% to $614.6 million from $443.3 million.

The company credited its performance to strong organic growth, which included 96% growth in the Electric Vehicles sector.

Further, contributions from four acquisitions supported its full-year results.

As a result, Volex declared a final dividend of 2.4 pence, 9.1% higher year-on-year versus 2.2p.

This gives for a total dividend of 3.6p, also up 9.1% compared to the year before.

Volex said that the new financial year started ‘strongly’ with high levels of customer demand and orders, particularly for more complex products with longer lead times.

Looking ahead, it plans to capitalise on several growth opportunities in financial 2023 and beyond.

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