Volex PLC (LON:VLX) said it intends to pay a final dividend for the past year as the cable maker is confident it will be protected in the coronavirus pandemic from its exposure to medical devices and data-centre customers.
These “defensive” contracts make up approximately two-thirds of the AIM-listed company’s complex assemblies division.
As of Thursday 16 April, all of the company’s 14 sites are operational, having reported in February that its four sites in China had resumed operations at a reduced capacity after a mandatory closure over the Chinese New Year period because of the coronavirus outbreak.
Volex said its medical sites in the US and Mexico have been assigned “essential business” status, and other sites are similarly deemed essential manufacturing locations.
For the past financial year ending 5 April, sales rose at least 5% to above US$392mln, with sales in February and March higher than in the same period a year ago.
With year-end net cash of US$31.7mln, executive chairman Nat Rothschild said Volex is “taking steps to optimise cash flow” but still intends to declare a final dividend of 2p per share, having returned to the dividend list last autumn.
Shares in the company were up 10% to 138p on Thursday morning, continuing their strong rally since hitting 80p last month.