Leigh-based cable manufacturer and distributor Volex has seen a return to operating profitability in the 16 weeks to July 20 after recording an operating loss in the second half of last year.

In a statement to the stock exchange, released ahead of the group's annual general meeting, Mike McTighe, chairman of Volex, said group revenue in the 16-week period was 14.8% ahead of the same period last year.
At constant exchange rates, it was 12% ahead.

The company said the improvement in fortunes was in line with expectations.
Mr McTighe said the group's power products division continued to trade strongly, with revenue up 17.5%.

He said the forward order book remained strong, despite the global economic uncertainty.
He said the company continued to take actions designed to mitigate the potential impact of any future downturn in global consumer demand, as well as volatile commodity prices, in particular copper.
Interconnect revenue increased by 10.8%.

Mr McTighe said the telecommunications sector remained volatile with an improvement in order levels in Europe offsetting a decline in order levels in North America.

Revenue in India continued to grow strongly with growth of 135% over the same period last year as a result of new customers and the impact of the infrastructure roll-out across the country.
The wiring harness division, which Volex has been struggling to restructure, recorded a 15.2% increase in revenue.

Mr McTighe said operating losses in the period had stabilised at a similar level to the second half of last year. Net debt at the end of the first quarter reduced to £18.3m compared to £21m at March 30.
He added that in order to improve the group's financial flexibility it had secured an additional finance facility with Bank of Scotland.
This allowed it to draw up to £2m in addition to its existing revolving credit facility.