Volex – up nearly 35% in four months and more to go for with Main Market move planned, shares 479p, TP 580p

Mark Watson-Mitchell – 25.03.2026  

This morning Nat Rothschild’s £870m-capitalised Volex Group (LON:VLX) has announced a strong trading update for its year to end-March, with full-year revenue now expected to be at least $1,220m, significantly exceeding market expectations, and underlying operating margins anticipated to be above the 9-10% target range.

That outperformance was primarily driven by high demand for data centre products, with revenues in that segment expected to double from the prior year's $118m, fuelled by AI applications.

Another impactive piece of news, along with today’s Update, is the statement that the company is also considering a move from AIM to the Main Market of the London Stock Exchange to access deeper capital pools and enhance its corporate profile.

In a world that grows more digitally complex by the day, Volex’s customers trust it to deliver power and connectivity that drives everything from household essentials to life-saving medical equipment. 

The Business

The Basingstoke-based group orchestrates its operations across 23 advanced manufacturing facilities, uniting 13,000 dynamic individuals from 25 different nations.

Volex is a driving force in integrated manufacturing for mission-critical applications and a global leader in power and data connectivity solutions.

Its diverse operations support international blue-chip customers in five key end-markets: Electric Vehicles, Consumer Electricals, Medical, Complex Industrial Technology and Off-Highway.

The group’s extraordinary products find their way to market through its localised sales teams and authorised distributor partners, supporting Original Equipment Manufacturers and Electronic Manufacturing Services companies across the globe.

Management Comment

CEO Nat Rothschild stated that:

"Our performance during the period is testament to the exceptional business we have built and the acceleration in our Data Centre business this year is a direct consequence of the strategic investments we have made in engineering capability, manufacturing capacity and our ability to respond to rapidly evolving customer requirements.

With revenue now expected to exceed $1.2 billion and margins above the top end of our target range of 9-10%, the scale and quality of our business has never been stronger.

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.

As such, we will be consulting our largest shareholders to understand their views on this matter.

At our Capital Markets Day on 22 April, we will set out our plans for the next phase of our value creation journey, including the medium-term strategic ambitions and financial objectives that will shape our journey over the coming years.

We look forward to sharing our plans for the next phase of Volex's growth with the market."

Main Market Move

The company noted that it joined AIM in 2018 and since that time, it has grown materially in respect of revenues, profitability and market capitalisation.

It is now a leading global provider of high-quality, diverse power and data connectivity solutions with a unique global footprint spanning 25 countries and over 13,000 employees.

In conjunction with the expectation of being eligible for inclusion in the FTSE250 Index, the Board believes that a move to the Main Market would facilitate access to deeper pools of capital and a broader range of investors, supporting increased liquidity in trading of the Group's shares. 

It also believes that a Main Market listing would increase the corporate profile of the Company and enhance its reputation with a larger and more global customer base. 

Broker’s Views

As at Monday 23^rd March, the average of company compiled analysts' forecasts for the year to end-March was for revenue is $1,173.0m with a range of $1,149.3m to $1,192.2m, the average for underlying operating profit was $114.8m, with a range of $111.5m to $117.0m.

Earlier this month, analysts Henry Carver and Caroline de La Soujeole, at Singer Capital Markets, issued a Buy note out on the group’s shares, with a 580p Target Price.

Before today’s Update, they estimated that the year to end-March 2027 will see the group increase its revenues to $1,235.3m, with adjusted pre-tax profits of $101.1m, earnings of 41.2c and paying a dividend of 7.60c per share.

My View

The re-rating of Volex is still underway, and the possible Main Market move should speed up that process, especially as Index-tracking fund managers swing into action.

The group’s shares, now at 479p after hitting 492p earlier this morning, are over 10% today, but still offer so much more to go for this year and next.

Volex - Aerospace

(Profile 10.11.25 @ 365p set a Target Price of 450p*)