The company revealed yesterday that sales in the six months to the end of September had fallen on last year, and that profits had been cut to a fifth of last year’s.
Apple changed the connector used on its products when it unveiled the latest iPhone last month, choosing a different design after nine years with the old connector. The news had sent Volex’s shares down 30 per cent, such is the company’s reliance on its contract with Apple.
London-listed Volex yesterday reported that turnover fell eight per cent on last year to $249.3m (£154.6m), while pre-tax profit was down 78 per cent to $2.2m. Shares in the Manchester-based firm fell four per cent.
Volex yesterday announced it was embarking on a comprehensive cost-cutting operation in order to maintain its shrinking margins.
“The first half has been tough and lower than anticipated growth with the largest customer in the consumer sector and a challenging economic environment have combined to produce a disappointing set of results,” the company said.