Electrical and electronic cable assemblies produced VLX (Volex) saw its share price rise 6.6%. Today, CEO Ray Walsh notified that he bought £31k worth of shares, bringing the total directors buys in the YTD to £160k. VLX has a yield of 3.0%, a PFCF of 5.4, a PE of 12.5, and a very low EV/Sales of 0.20 (compared with sector average of 2.9). Gearing is 9% and interest cover is 8.36. In the IMS issued on 12-Feb-2013, the company noted:
Trading conditions have remained challenging … Despite the background of macro-uncertainty and general softening of demand, we have won new business with a major global technology company. We are making good progress with our restructuring programme. Our sales and finance functions have been strengthened and are more closely aligned with our sectors. Production cost and operating expense savings are being delivered as expected. Accordingly, management expects full year revenue and operating profit for the year ending 31 March 2013 to be in line with revised market expectations
VLX trades on a forward PE of 9.0.
VLX shares have been trading sideways over the last 3 months, having taken off mid-February, only to fall back down again.
In September 2012, the shares plunged when it reported in its trading update:
In light of a recent unexpected change in forecast demand from the Company’s largest customer in its Consumer sector and the continuing adverse macro-economic conditions, the Company now anticipates that revenue and profit for the year ending 31st March 2013 will fall short of Management’s prior expectations.
The shares plunged again in December 2012 when it announced:
Contrary to earlier expectations of growth in second half revenue, the Company has experienced a general softening of demand across all sectors as well as delays in specific project timelines, which does not include our largest customer.