The share price of Volex (AIM: VLX) has continued its surge, adding 9 percent after upgrading its outlook.
As a supplier of integrated manufacturing services and power products, it is fully benefiting from the ongoing demand for consumer electronics and a wider shift to electronic vehicles.
Now, the board is expecting half year and full year profits to be materially ahead of market expectations at both periods.
Revenue of $200m for the half-year is expected along with a near 26% increase in underlying operating profit – expected to be at least $20m.
Commenting on the promising trading update ahead of the 26 weeks ending 12 November (interim results) was Nat Rothschild, executive chairman of VLX:
“We enter the final quarter of calendar 2020 in a healthy position. Our geographic and customer diversification continues to provide the business with a high degree of visibility at this time while ongoing demand for consumer electronics remains strong and the global shift to electric vehicles gathers pace.
Absent another widespread COVID-19 related global lockdown, given the robust performance in the first half of the year, coupled with our strong forward order book position, the board expects to see a strong performance for the year as a whole that will be above current market expectations.”
The share price of VLX is currently at around 210p.