The Volex Board has declared an interim dividend of 1.4 pence, an increase of 7.7% on the previous year. Since the Group recommenced dividend distributions in FY2020, it has progressively increased payments by 40% in that time. The Board is committed to a progressive dividend policy, striking a balance between delivering growth through investment and returning cash to shareholders.
The interim dividend will be paid on 10 January 2024 to those shareholders on the register on 1 December 2023. The ex-dividend date will be 30 November 2023.
Other financial highlights include:
Revenue growth of 11.2%, with constant currency organic growth of 4.2%
Underlying operating profit increased by 16.5% to $37.4 million
Underlying operating margin strengthened to 9.4% due to careful cost control and an improving sales mix
Significant improvement in underlying free cash flow, delivering $11.9 million, with working capital improved compared to the previous period
Increase in net debt to part fund acquisition of Murat Ticaret Kablo Sanayi A.S. ("Murat Ticaret"), for $195 million, with period end covenant leverage of 1.3x, comfortably within the Group's target corridor of 1.0x to 2.0x
Integration of Murat Ticaret is progressing well with positive customer engagement and cross-sales opportunities
Continued progress towards the five-year plan supported by a targeted investment programme expanding capacity and capabilities
