StockMarketWire.com - Volex has reported a 7.3% rise in revenue to $195.7m as it repositions the business through targeted acquisitions and continues to reduce exposure to low-margin legacy customers.

In its half year report to the end of September 2019, it said operating cash flow (before movements in working capital) had shown "significant improvement", up by 108% to $17.5 million, due to the combined impact of the acquisitions and improved margins.

Underlying gross margins improved sfrom 18.7% for H1 FY2019 to 23.1% for H1 FY2020 across the company's Power Cords and Complex Assemblies divisions.

In July 2019, Volex acquired Servatron, a US-based manufacturer of printed circuit board assemblies, box builds and complete sub-assembly solutions.

Volex said the acquisition of Servatron in the North American market, as with that of Silcotec in the European market, allowed it to continue to move up the value curve by offering more complex integrated manufacturing solutions to existing Volex customers.

The company said it is now in the process of "significantly expanding the manufacturing capacity" in its Batam factory to allow for the production of high-speed data cables outside of China for the first time.


At 9:09am: [LON:VLX] Volex Group PLC share price was +3.75p at 111.75p



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