Volex PLC (AIM:VLX), the AIM-listed manufacturer of power cables and data transmission products, has upgraded its full-year profit expectations after a surge in demand from artificial intelligence data centres, sending its shares up 12% to 484p.
The company now expects revenues for the year ending March 2026 to reach at least $1.22 billion, with operating margins expected to finish slightly above its 9-10% target range.
The outperformance was driven primarily by its data centre division, where full-year revenues are expected to roughly double compared with the $118 million achieved the previous year, as customers scrambled to secure high-speed data transmission components ahead of competitors.
Volex also announced it is considering moving its stock market listing from AIM to the Main Market of the London Stock Exchange, citing its growth in revenues, profitability and market capitalisation since joining the junior market in 2018, and flagging potential inclusion in the FTSE 250 index.
The company will host a capital markets event for institutional investors on 22 April, where management will set out new medium-term growth targets.
Chief executive Nat Rothschild said revenue exceeding $1.2 billion demonstrated that "the scale and quality of our business has never been stronger."