Volex has stated that its group revenue is expected to be at least $710m in the first half of its financial year, marking a 21% year-on-year increase.

The FTSE 250 critical power and data transmission products manufacturer said that trading was “excellent” in the six months to 30 September, with year-on-year growth in every end-market.

This follows the acquisition of Kepler SignalTek (KST), which is expected to contribute $11m in revenue in this period.

It added that year-on-year headline growth rates have started to normalise from the 28% reported in the first four months, as the data centre programmes that ramped up in the prior year annualise.

Furthermore, its first half underlying operating margin is expected to show progress towards its medium-term target of 12%. This reflects an improving revenue mix, including the higher-margin contribution from KST, alongside further operational efficiencies.

In its outlook, Volex said second half revenues are expected to be broadly similar to the first half, after allowing for the revenue brought forward ahead of its US site consolidation, with current trading conditions expected to continue across most end-markets.

As a result, the board expects its full-year underlying operating profit to be towards the upper end of its current market expectations, which sits at $1.38bn, with a range of $1.37bn and $1.43bn.

Despite the positive performance, shares in Volex dropped by over 9%.

The group will announce its half-year results on 12 November.

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