Volex (VLX)

Sector:

Electronic and Electrical Equipment

Index:

FTSE AIM 50

283.50p
   
  • Change Today:
      0.50p
  • 52 Week High: 335.00
  • 52 Week Low: 202.00
  • Currency: UK Pounds
  • Shares Issued: 181.62m
  • Volume: 76,904
  • Market Cap: £514.89m
  • RiskGrade: 228

Volex buys majority stake in Indian firm inYantra

By Josh White

Date: Monday 07 Mar 2022

LONDON (ShareCast) - (Sharecast News) - Power products and integrated manufacturing provider Volex announced a 51% majority equity investment in inYantra Technologies for $8m (£6.08m) on Monday.
The AIM-traded firm also announced the purchase of 13.5 acres of industrial land, including 3.5 acres and the operational buildings used by inYantra, in Pune, India, for $5m.

It said the equity investment and property purchase consideration, totaling $13m, was being satisfied in cash on completion from the company's existing debt facilities, and were both expected to complete in the coming weeks.

Volex said inYantra has expertise in printed circuit board assembly and box-build integrated solutions, operating from a dedicated manufacturing site.

It had established customer relationships and more than 500 employees, led by an "entrepreneurial" management team.

The company also described Pune as a "hub" for advanced manufacturing, and the location of one of Volex's largest medical customers.

It said the equity investment would create "substantial" additional opportunities with that customer, as well as provide further growth potential from the domestic and export market and enable a "strong" combined cross-sell proposition to mid-volume industrial customers in the region.

The investment would also strengthen Volex's ability to provide flexibility and choice to its global customer base in the provision of its vertically-integrated solutions, the board said, by adding a new manufacturing region to its international operating footprint.

Volex said the property purchase, meanwhile, would allow for an expansion in the range of capabilities the site could offer following the construction of a new 100,000 square foot medical and complex industrial technology cable assembly facility, with the scope for further development to support expansion in its other segments, including consumer electrical and electric vehicles.

For the year ending 31 March, inYantra was expecting to generate revenues of around $22m and EBITDA of about $1.6m across the consumer electrical and industrial markets.

The existing management team had delivered compound annual revenue growth of 38% in the last five years, and would remain in place to deliver a joint business plan focused on further growth.

"This transaction offers an excellent strategic opportunity to expand our global footprint, which is consistent with our strategy, and will bring new and strengthened capabilities in the key Indian market," said executive chairman Nat Rothschild.

"InYantra's existing business, along with the imminent development of a complex cable assembly capability, will improve our customer offering, supporting low-cost manufacturing for existing and new domestic and export customers.

"Volex sees a further opportunity to improve inYantra's margins by allowing inYantra to leverage the economies of scale from being part of a larger group."

At 1145 GMT, shares in Volex were down 4.99% at 228.5p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Volex Market Data

Currency UK Pounds
Share Price 283.50p
Change Today 0.50p
% Change 0.18 %
52 Week High 335.00
52 Week Low 202.00
Volume 76,904
Shares Issued 181.62m
Market Cap £514.89m
RiskGrade 228

Volex Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
64.72% below the market average64.72% below the market average64.72% below the market average64.72% below the market average64.72% below the market average
17.65% below the sector average17.65% below the sector average17.65% below the sector average17.65% below the sector average17.65% below the sector average
Price Trend
44.00% above the market average44.00% above the market average44.00% above the market average44.00% above the market average44.00% above the market average
58.97% above the sector average58.97% above the sector average58.97% above the sector average58.97% above the sector average58.97% above the sector average
Income
49.75% below the market average49.75% below the market average49.75% below the market average49.75% below the market average49.75% below the market average
46.67% below the sector average46.67% below the sector average46.67% below the sector average46.67% below the sector average46.67% below the sector average
Growth
39.15% above the market average39.15% above the market average39.15% above the market average39.15% above the market average39.15% above the market average
82.35% above the sector average82.35% above the sector average82.35% above the sector average82.35% above the sector average82.35% above the sector average

What The Brokers Say

Strong Buy 3
Buy 2
Neutral 0
Sell 0
Strong Sell 0
Total 5
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Volex Dividends

  Latest Previous
  Interim Final
Ex-Div 30-Nov-23 20-Jul-23
Paid 10-Jan-24 25-Aug-23
Amount 1.40p 2.60p

Trades for 28-Mar-2024

Time Volume / Share Price
08:45 10,981 @ 283.25p
08:38 358 @ 282.45p
08:21 1 @ 283.88p
08:20 74 @ 283.50p
08:19 617 @ 283.50p

Volex Key Personnel

CFO Jon Boaden

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