Volex PLC (AIM:VLX) shares came under pressure even though brokers said results for 2024 were in line with estimates with a notable improvement in cash flow.
Revenue in the year to March 2024 at the electric vehicle cable group rose to US$913 million with organic growth at 6.9%.
Adjusted profit was US$77.4 million, ahead of Peel Hunt forecasts, while free cash flow at US $49.8m was three times the broker’s forecast with a significantly better performance across all working capital lines.
Management also reiterated confidence in the five-year plan to reach $1.2bn of revenue in 2027, with a more gradual organic recovery in FY25, boosted by the full-year contribution from the acquisition Murat Ticaret.
“We expect the market to develop more conviction around growth as the year progresses and reiterate our “buy” recommendation and 400p target price,” said the broker.
Shares dropped 21p to 332p.