Volex (LON: VLX), a Basingstoke-based maker of power and data connectivity products for data centres, electric vehicles and medical equipment, saw its shares surge as much as 22% intraday after telling its annual general meeting that full-year profit would beat market expectations.
The shares closed yesterday at 614p, up 15% from the prior close of 534p, having touched an intraday high of 653p on volume of about 3.58 million shares, well above typical daily turnover of under 1.5 million, and leaving the stock near its 52-week high.
At the AGM, chief executive Nat Rothschild disclosed that organic revenue had grown 28% at constant currency, stripping out the effect of exchange-rate moves, in the first four months of the 2027 financial year. Growth was broad-based across all five of Volex’s end-markets but led by data-centre-linked demand for complex industrial technology. The board said the strength of trading, combined with operating leverage, the tendency for profit to grow faster than revenue once fixed costs are covered, meant it now expected underlying operating profit for the year to come in ahead of current market expectations, having previously guided to a figure near $138.3 million.
Rothschild said: “As a result of the strength of trading in the opening months and the operating leverage inherent within the business model, the board now expects FY 2027 underlying operating profit to be ahead of current market expectations.” Management noted the 28% growth partly reflects a weak comparative period a year earlier and said growth should normalise, though average monthly revenue in the four months was still 8% above the second-half FY2026 monthly average. That gap between the trading pace and the previous profit guidance is what drove the re-rating: a market positioned for a modest update was instead told profit would clear a bar set months ago.
The shares carried much of yesterday’s gain into today’s trade, changing hands around 625p in early dealing, up 1.8% on the new prior close of 614p.
All 19 resolutions put to the AGM were passed on a poll, including Rothschild’s re-election and a final dividend of 3.2p a share, giving shareholders formal sign-off on a plan management now says is running ahead of schedule.