Volex PLC (AIM:VLX), the power products manufacturer, expects to deliver full-year results in line with market expectations, despite suffering a cyberattack, having reported a 4% jump in revenues for the first six months of the 2023 financial year, a trading update revealed.
Confirming a cyberattack took place earlier this month on certain IT systems with data on some international sites affected, the Hampshire-based group reassured that all manufacturing sites are now operational, delivering full production output.
The company does not expect any material impact to revenue or underlying profits from the incident but costs to recover the situation are expected to be around US$2 million, which will be reported as an exceptional item in the group’s second-half results.
As the pressure of supply chains and higher interest rates continues to ease, the group is experiencing a tailwind from strong demand at its medical and complex industrial technology division.
Having bought Murat Ticaret, the Turkish wiring harness manufacturer, for US$195 million during the first half, in what the group considers is its “most significant acquisition to date”, Volex said integration activities are currently underway.
Hoping to improve group operating margins, the company expects the operations from the newly acquired firm to contribute to seven months of trading for the financial year.
Nat Rothschild, executive chairman of Volex, commented: "Volex has delivered another period of growth, with our strategy of diversification affording the group a high degree of resilience and flexibility, ensuring that we remain on course to deliver on our full-year expectations.”
Shares in Volex are up close to 2% in trading on Tuesday, having opened at around 289p.