Volex Shares Surge as Electric Vehicle Charger Demand Drives 25% Profit Growth

Lord Rothschild’s cable manufacturing enterprise Volex has reported a remarkable 25% increase in profits, driven by soaring demand for its electric vehicle chargers. The company’s financial performance exceeded management’s previous guidance, propelling shares upward by 17.3% to 370p, marking a nine-month peak.

The company, which traces its origins to Manchester’s Ward & Goldstone established in 1892, has evolved from its humble beginnings as a manufacturer of household electrical items. Under the leadership of Rothschild, 53, who owns a 25% stake and serves as executive chairman, Volex has transformed into one of AIM’s largest companies, boasting a market capitalisation approaching £700 million.

Sales for the fiscal year ending March reached $1.09 billion, representing a 19% increase from $913 million in the previous year. Statutory pre-tax profits climbed to $64.3 million from $51.6 million, prompting the board to raise the final dividend by 7% to 3p per share, translating to a £1.4 million payout for Rothschild.

The company’s strategic expansion into electric vehicle charging systems has proved particularly lucrative, with Tesla among its prominent clients. The acquisition of Turkish power cable manufacturer Murat Ticaret has further bolstered the company’s market position.

Despite initial concerns regarding potential impacts from Trump’s trade tariffs, Volex management has reassured investors that only 12% of sales would be affected. The company’s robust international manufacturing network and strong customer relationships position it well to navigate these challenges through production relocation and cost pass-through strategies.

The market’s positive response reflects growing confidence in Volex’s ability to capitalise on the expanding electric vehicle sector while effectively managing geopolitical trade pressures, cementing its position as a leading player in the global power cable manufacturing industry.