Fabulous results | A tough business | Melting Chocolat
Hotel Chocolat issues another disappointing trading update, but it’s not entirely unexpected. Elsewhere, a manufacturer of cables and plugs makes a big acquisition, but its business looks decidedly challenging to us. There were also fabulous results from two companies in the financial services sector whose business models look far more straightforward to us, as you can discover here. (Free to read)
Volex: strong growth, but this looks a tough business to manage Volex (AIM: VLX), the manufacturer of power and data transmission products (plugs, cables circuit boards etc), announced results for the 52 weeks ending 2 April 2023 and news of a sizeable acquisition. This looks a very tough business to manage in the fight to lowest cost manufacturing. Revenue for the year increased 17.6% to $722.8m of which organic constant-currency revenue growth was 11.4%. Volex is benefitting from its strong position in the manufacture of EV charging cables and associated parts, where sales rose 33% to $138m. This comments in the…