Volex mulls London Main Market move as data centre demand drives sales
Volex PLC on Wednesday said it expects full-year results to ‘significantly’ beat market consensus, and it is considering a move to London’s Main Market.
In response, shares in the Hampshire, England-based maker of power and data transmission products soared 10% to 479.51 pence each in London on Wednesday.
Volex said it continued to trade strongly in the second half, with full-year revenue now expected to be at least $1.22 billion and results ‘significantly’ ahead of current market expectations.
Consensus forecasts had pointed to underlying operating profit of $114.8 million on revenue of $1.18 billion.
In the 52 weeks to March 30, 2025, Volex reported underlying operating profit of $106.2 million on revenue of $1.09 billion.
Underlying operating margins for financial 2026 are now expected to be slightly above the top end of its 9% to 10% target range, compared to 9.8% the year prior.
The outperformance has been driven primarily by the Complex Industrial Technology division with continued high demand for high-speed data transmission products driven by data-intensive artificial intelligence applications.
As a result, full year data centre revenues are now expected to be around double the $118 million achieved in the prior year.
Other end markets, Electric Vehicles, Consumer Electricals and Medical, the other elements of Complex Industrial Technology and Off-Highway, have each traded broadly in line with the first half of the year, Volex added.
The firm said it has limited direct exposure to the markets most immediately affected by the uncertainty in the Middle East and does not currently anticipate a ‘material’ impact on the group’s operations or near-term outlook.
In addition, Volex said it is evaluating a move to the Main Market from AIM. This could enable FTSE 250 inclusion, the firm said. With a £798 million market capitalisation, Volex likely would qualify. The index’s most recent new members, CVS Group PLC and Schiehallion Fund Ltd, have market values of £818.0 million and $1.69 billion, respectively.
Such a move would facilitate access to deeper pools of capital and a broader range of investors, increase its corporate profile and enhance its reputation with a larger and more global customer base, Volex said.
‘The board believes the group has reached a level of scale, profitability and international breadth where it is right to consider a listing on the Main Market of the London Stock Exchange,’ Chief Executive Nat Rothschild said.
Volex will also host a capital markets event for institutional investors and analysts on April 22.
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