Volex (AIM:VLX ) says it intends to pay a final dividend of 2p per share after the group affirmed its confidence in the protection of its business during the coronavirus pandemic.
The cable maker said its medical sites in the US and Mexico have been assigned ‘essential business’ status, with other sites also being given essential manufacturing locations.
It said its strategy to diversify products and its exposure to medical devices and data-centre customers had resulted in continued growth for the company during this time.
The group reported that full-year sales were expected to exceed US$392m for the financial year ending 5 April and that combined sales for February and March had come to $68m.
Nat Rothschild, Executive Chairman of Volex said the group had seen continued growth and strong cash generation despite “significant headwinds,” ending the period with a year-end net cash of US$31.7m.
Shares in Volex were trading 14.8% higher at 143.5p during afternoon trading.
He added that Volex is “taking steps to optimise cash flow” but that it still intends to declare a final dividend of 2p per share which he said reflects the company’s “robust financial position.”
The group said that as of 16 April 2020, all of its 14 sites remain operational after it previously reported that four sites in China had resumed operations at a reduced capacity following mandatory closure as a result of the coronavirus outbreak.
“Despite this 'perfect storm', Volex's business has proved remarkably resilient, continuing to produce a solid performance in both sales and operating margins,” said Rothschild.
Volex said its existing facility and cash balances will provide the group with around $60m of liquidity and that the team continues “to grow the business and technical capabilities.”
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