Volex Group has posted a 26.3% increase in its annual revenue to $912.8m against a backdrop of temporary headwinds caused by customer destocking.

The electronic connector manufacturer’s latest results for the year to 31 March revealed this was driven by strong organic growth of 6.9%.

Volex, a specialist integrated manufacturer of critical power and data transmission products, has now doubled its revenues in three years while maintaining operating margins within a target range of 9-10%.

In the latest results, Volex recorded a rise of 50 basis points in its underlying operating margin to 9.8%, as the group has continued to make progress towards a five-year strategic plan, supported by customer-led investment programme and acquisitions.

The group’s executive chairman, Nat Rothschild, said that the “transformative” acquisition of Murat Ticaret, for a total consideration of $196m, has further enhanced its capabilities and solidified the firm’s market position.

“Our strategic investments in FY2024 and those planned for FY2025 will expand capacity at key locations to meet anticipated future customer demand, positioning Volex for further growth by leveraging our dominant positions in attractive sectors,” said Rothschild.

“With leading positions in our end markets, strong cash flow and robust financial position, we are ideally positioned to capitalise on the significant growth opportunities available to us.”

In its outlook for the next financial year, Volex has forecast improved demand from electric vehicles and consumer electricals customers, which it said is indicating a “reducing destocking impact”.

Rothschild also said the group’s acquisition pipeline remains “promising”, and added: “Having started the new fiscal year with strong customer demand, we are confident of making further progress in FY2025 and we are firmly on track to achieve our five-year revenue target of $1.2bn by the end of FY2027.”

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