Annual Report & Accounts 2005     Volex Group plc
Volex Group plc
Dornoch House
Kelvin Close
Birchwood Science Park
Warrington WA3 7JX
England
T +44 (0)1925 830101
F +44 (0)1925 830141
W www.volex.com
Annual Report
& Accounts 2005
Volex Group plc
58812 Volex R & A COVER.qxd  14/7/05  7:33 pm  Page 1 Shareholder
Information
Financial calendar
2004/2005
Unaudited preliminary results announced 6 June 2005
Annual General Meeting 8 September 2005
2005/2006
Interim results published November 2005
Year end 2 April 2006
Preliminary results announced June 2006
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Registered office
Dornoch House, Kelvin Close, Birchwood Science Park, Warrington WA3 7JX
Registered number
158956 (Registered in England and Wales)
Auditors
Deloitte & Touche LLP
Bankers
Barclays Bank PLC
Bank of America
Royal Bank of Scotland PLC
Registrars
Capita Registrars plc, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU
Solicitors
Allen & Overy
Stockbrokers
Evolution Securities Limited
Registered Office
and Advisers
Volex Group plc Annual Report & Accounts 2005 65
01 Financial Highlights
02 Total Solutions in Cable Assemblies
04 Products and Worldwide Locations
06 Chairman’s Statement
09 Chief Executive’s Review
13 Financial Review
16 Board of Directors
17 Consolidated Profit and Loss Account
18 Consolidated Statement of Total Recognised Gains and Losses
18 Reconciliation of Movements in Consolidated Shareholders’ Funds
19 Balance Sheets
20 Consolidated Cash Flow Statement
21 Statement of Accounting Policies
24 Notes to the Accounts
44 Independent Auditors’ Report to the Members of Volex Group plc
45 Corporate Governance Report
49 Social, Ethical and Environmental Report
51 Directors’ Remuneration Report
60 Directors’ Report
64 Five Year Summary
65 Shareholder Information
65 Registered Office and Advisers
58812 Volex R & A COVER.qxd  14/7/05  7:33 pm  Page 2 Financial
Highlights
2005 2004
52 weeks 53 weeks
£m £m
Turnover 244.6 238.4
Operating profit 
(1)
1.5 2.5
Exceptional operating items and goodwill amortisation less profit on sale of properties 6.9 7.0
Loss on ordinary activities before tax 
(1,2)
(2.6) (1.3)
Loss on ordinary activities before tax (9.5) (8.3)
Tax charge 4.4 2.9
Adjusted loss per share 
(1,2)
(23.8)p (14.7)p
(1) Before goodwill amortisation of £0.3m (2004 - £0.3m) and exceptional operating items of £8.5m (2004 - £6.7m)
(2) Before profit on sale of properties £1.9m (2004 - £nil)
Turnover Operating profit
(1,2)
Turnover by destination
58812 Volex R & A 1-16.qxd  19/7/05  10:00 am  Page 1 Total Solutions in
Cable Assemblies
Volex is a leading independent producer of electronic and
fibre optic cable assemblies and electrical power cords. 
The Group currently operates over 40 facilities located
strategically in Asia, Europe and North and South America.
Volex provides global support to leading producers of
computers, telecommunications systems and networking
devices. In addition, the Group produces cable assemblies
and harnesses for consumer electronics and appliances,
medical and industrial applications and for the transportation,
defence and aerospace industries.
Data/Telecommunications
Volex has become a leader in the production of cable
assemblies used in advanced routing, switching, fixed line
applications and wireless communication devices. Increasing
demand for high-speed Internet access, the continued
growth in wireless communication and the roll-out of “Triple
Play” infrastructures (bundling voice, video and Internet) is
providing growth potential for the Company.
Consumer Appliances and Electronics
As one of the world's leading manufacturers of power cords
Volex supplies an extensive range of international standard
and custom designed products suitable for a variety of
markets including PC’s, notebooks, printers, white/brown
goods, floorcare, gardening, power tools and small
appliances. Volex also supports the full range of cable
assemblies required by the digital and analogue home
entertainment sector.
Industrial/Medical
Volex produces a wide variety of custom cable assemblies
and power cords for a range of medical devices, including
cardiac monitoring equipment, ultrasound equipment, MR
equipment, X-ray equipment and nuclear medicine
equipment. Cable assemblies and harnesses are produced
for industrial applications, such as automation equipment,
test and measurement equipment and vending machines.
Vehicle/Aerospace
In our specialist wiring harnesses divisions we produce
sophisticated, multi-drop harnesses used in commercial and
off-highway vehicles, aerospace and industrial engines,
avionics, flight management systems and defence
applications, such as weapons systems and armoured
fighting vehicles. 
58812 Volex R & A 1-16.qxd  19/7/05  10:00 am  Page 2 Volex Group plc Annual Report & Accounts 2005 03
Leveraging our core competency of cable assemblies and
power cords, Volex provides a Total Solution to its customers
centred around a broad product portfolio, excellent quality and
a wide variety of assembly and supply services.
Total Product
Volex offers a complete product portfolio, ranging from power
cords, small harnesses and industry standard cable
assemblies to high-end custom cable assemblies, such as
radio frequency, high speed and fibre optic cables.
Our design and development capabilities enable us to design
a product from concept, improve product performance,
provide alternative material sourcing and improve the
manufacturing efficiency of the product. 
Our global footprint allows us to transfer products quickly from
one location to the other, enabling us to develop our products
close to our customers and produce them in lower cost
regions to offer a competitive product solution in every region
of the world.
With our Total Product Solution Volex can service a wide
range of customer product supply requirements and offers the
customer an opportunity to utilise Volex as its consolidated
supplier of products across the cable assembly spectrum.
Total Quality
Volex is recognised for its quality products and we continue to
invest in training and equipment to maintain our leadership in
this area. 
Our commitment to quality is shown in our extensive range of
industry-specific product safety approvals, our customer quality
awards and our investment in various ISO certifications, ranging
from ISO 9001:2000 to ISO 14001, OHSAS 18001 and other
industry specific certifications such as TL 9000 and QS 9000.
With the introduction of the Waste Electrical and Electronic
Equipment (WEEE) directive and the Restriction on Hazardous
Substances (RoHS) directive, both issued by the European
Union, environmental legislation is becoming increasingly
important in our industry. These directives are aimed at
reducing the waste arising from electrical and electronic
equipment and improving the environmental performance of 
all those involved in the life cycle of electrical and electronic
products. 
Volex has undertaken a comprehensive review to define all
requirements for materials compliance in all regions of the world.
Immediate priority will be given to achieving full conformance
on materials defined by the RoHS directive, namely lead,
mercury, cadmium, hexavalent chromium, polybrominated
biphenyls (PBB) and polybrominated diphenyl ethers (PBDE).
Project planning is focused on achieving full conformance
against these RoHS materials in all cable assemblies by 31
December 2005. The legislative deadline is 1 July 2006. 
Volex has already developed a range of products that comply
with the new environmental legislation, such as lead-free
power cords. Volex initiated the use of lead-free injection
moulding compound for its power cords in 2003 and currently
supplies a range of lead-free cord sets to its customers.
Total Service
Volex operates in rapidly changing and highly competitive
markets characterised by increased consolidation and
outsourcing from OEM’s (Original Equipment Manufacturers) 
to EMS (Electronics Manufacturing Service) providers,
reducing supply bases, increased price erosion and a shift
from regional to global supply sourcing. 
In this dynamic environment value-add services play an
important role in winning and maintaining customer programmes.
Our customers have become truly global players and they
expect Volex to work with them on a global level. Our Global
Accounts organisation meets that requirement and offers
customer relationship management on a global level managing
global project activities, co-ordinating local programmes and
offering a single point of contact for our customers.
With the continuing globalisation of our market place and the
importance of manufacturing in lower cost areas, supply chain
management and logistical services are a vital part of our Total
Services offering. Volex can provide a range of logistical
services that increase the flexibility for our customers, enabling
shipment directly to local hubs, third parties or even to the
point of installation. Our global position also enables us to
benefit from global supply contracts and provides us with
opportunities to use locally sourced materials which reduces
lead times and cost.
With our global presence and our vast range of quality products
and services, Volex is well positioned to be the supplier of
choice to our customers, offering a Total Solution for their
cable assembly demand.
58812 Volex R & A 1-16.qxd  19/7/05  10:00 am  Page 3 Products and
Worldwide Locations
Volex manufactures a wide range of cable assembly solutions
that can be categorised into three broad product groupings –
power products, signal cable assemblies and multifunction
cable harnesses.
Power products 
Volex produces and supplies a wide range of power cords
and cable assemblies finished to OEM specification. Our
power products are used in computer products, medical
products, electrical and electronic consumer products and
industrial tools and equipment. 
Signal cable assemblies 
These products carry signals within and/or between equipment
for applications such as communications, networking and
computing products and medical/industrial equipment. The
majority of these cable assemblies are custom designed. 
Industry Standard
Volex offers an extensive range of “industry standard” cable
assemblies for the communications and computer market, 
by which is meant products which operate in accordance 
with standardised industry parameters. The cable assembly
is customised in its design, for example by reference 
to length, angle of connector, moulding and colour. Volex 
cable assemblies are used in, for example, networking
products, servers and storage systems, internal switching 
and industrial products. 
High Speed
Volex offers a range of standard and custom high speed 
cable assemblies, including Fibre Channel and InfiniBand, 
to a number of OEM customers. Cable assemblies are 
engineered to meet the stringent electrical and mechanical 
requirements of industry standard specifications and are 
increasingly being used in system area networks, parallel 
processing applications and server storage systems.
Radio Frequency
Volex offers a range of radio frequency cable assemblies 
including flexible, conformable, semi-rigid, corrugated and 
phase matched assemblies. These products are used 
within switching devices, industrial automation, telecoms 
networks, testing and measurement and antenna products.
Fibre Optic
Volex offers custom designed fibre optic cable assemblies. 
These products are used within Sonet/SDH devices, 
networking devices, switching devices and base stations.
Multifunction cable harnesses 
These hybrid products have both power and signal
transmission capabilities within the cable harness.
Multifunction cable harnesses include specialist wiring
harnesses, which Volex designs, manufactures and supplies
for use in commercial and off-road vehicles and aerospace
and defence applications, and multifunction cable assemblies
for a variety of other applications including medical and
industrial markets.
Power Cords Cable Harnesses
Industry Standard Custom
High Speed
Fibre Optic
Radio Frequency
58812 Volex R & A 1-16.qxd  19/7/05  10:00 am  Page 4 Volex Group plc Annual Report & Accounts 2005 05
The Volex Group is headquartered in Warrington, United
Kingdom. It operates regional centres in Castlebar, Ireland to
service the European signal cable assembly market, in
Quincy, USA to service the North American market, and in
Singapore to service the Asian and South American power
product and signal cable assembly markets. The Singapore
regional centre also manages the European power product
business. Each regional centre manages its multi-site regional
operations. In addition, the Group’s specialist wiring harness
businesses are based in the United Kingdom and service
predominantly a UK/European customer base. 
The Group currently operates from over 40 locations across
the world. Of these, 23 are manufacturing centres and the
majority of these centres also house sales offices; 8 are
engineering/sales/logistics support units; and 10 are purely
sales offices.
In Europe, Volex has engineering/sales/logistics support units
in Ireland, Sweden and England and has manufacturing
operations in Croatia, England, Estonia and two facilities in
Poland. Our increased presence in Eastern Europe enables
us to offer a competitive and flexible service to our customers
based in this region.
In North America, Volex operates plants in Canada, the United
States and Mexico. In this region our Mexican operations
provide low-cost manufacturing capabilities for our customers
whilst the design, test and custom product programmes are
managed out of our North American facilities.
In South America, our facility in Jacareí, Brazil provides local
manufacturing and sales support for our customers in this region.
The majority of our manufacturing operations are based in
Asia indicating the importance of this region in our industry.
Volex has been operating in Asia for over ten years and has
steadily increased its presence here. Today, our manufacturing
plants are based in China, India, Indonesia, Thailand and
Vietnam, serving both a local market and offering a low-cost
solution for our global customer base.
Volex applies the ISO 9000 method of control, audit and
feedback to ensure that all we endeavour is focused on our
customers. All our manufacturing plants have ISO 9001:2000
certification. Volex has long believed in the measurement of
critical plant performance parameters and is rapidly
developing new and improved metrics to ensure it stays
ahead in the practice of delivering on time, while meeting ever
more demanding performance standards.
In addition to the ISO 9001:2000 certification, Volex is
committed to comply with relevant environmental legislation
and we work towards the requirements stated in the
ISO 14001 Environmental Management System. As part of
this system we review our environmental objectives and
targets on a regular basis and ensure continuous
improvement. Over 50% of our manufacturing facilities are
currently ISO 14001 certified.
Worldwide locations
Manufacturing and support units:
Asia: Shenzhen, China / Suzhou, China / Zhongshan, China /
Chennai, India / Batam, Indonesia / Jakarta, Indonesia /
Tampines, Singapore / Taipei, Taiwan / Bangkok, Thailand /
Hanoi, Vietnam.
Europe: Zagreb, Croatia / Leigh, England (3) / Stoke-on-
Trent, England / Warrington, England / Kuressaare, Estonia /
Castlebar, Ireland / Bydgoszcz, Poland / Tczew, Poland /
Östersund, Sweden.
North America: Ottawa, Canada / Aquascalientes, Mexico /
Hermosillo, Mexico / Tijuana, Mexico / Clinton, AR, USA /
Conover, NC, USA / Fremont, CA, USA / 
Indianapolis, IN, USA / Quincy, MA, USA.
South America: Jacareí, SP , Brazil.
Sales only offices:
Shanghai, China / Hong Kong, China / Osaka, Japan /
Yokohama, Japan / Seoul, Korea / Istanbul, Turkey /
Johor Bahru, Malaysia / Penang, Malaysia /
Selangor, Malaysia / Laguna, Philippines.
Volex global footprint
23 manufacturing centres
8 engineering/sales/logistics support units
10 sales only offices
58812 Volex R & A 1-16.qxd  19/7/05  10:00 am  Page 5 Chairman’s
Statement
“The stability provided by the injection of funds
by existing and new shareholders will allow the
Group to maximise the available market potential
and build a Company capable of sustainable
returns over the forthcoming years.”
Dom Molloy Chairman
The strategy of the Group for the past three years has been 
to realign the cost base with the actual and projected revenue
levels while ensuring that it invested in the opportunities available
in an improving market environment. Despite a limited access
to funds a number of significant actions have been taken to
reduce debt and return to profitability. Through the financial
year ended 3 April 2005, the Group experienced a number of
exceptional circumstances that affected the financial performance
being reported. These include a rise in commodity prices, in
particular copper and a fire in the Group’s Tijuana, Mexico
factory in September 2004. These issues have been addressed
and Volex has resumed its drive to benefit from improvement
in demand across the breadth of the markets we service. 
The dynamics of the cable assembly market continue to 
be challenging. It is though, increasingly providing opportunity 
for the Group as global customers continue to consolidate 
their supply base in favour of global suppliers such as Volex.
The Group continues to use its global presence and the
breadth of its product portfolio in combination with active
account management to secure a strong position in this
consolidation process. The breadth of our product portfolio
and the ability to leverage technology and capability external to 
the Group, combined with the range of services provided
enable the Group to extend a value offering to match any 
of the competition in our designated markets. Recently
published data from Fleck Research Inc. indicates that the
Group continues to be the third largest supplier of cable
assemblies in the world and that our market share increased in
2004 (calendar year) over the previous year.
To fully capitalise on the opportunities provided by differentiation,
the Group needs to accelerate the investment in the re-structuring
of the operational base and in the future growth of the business.
The level of trading has meant that the level of debt within the
Group has restricted the financial flexibility required.
The recent equity raising, netting £15.8m to the Group,
provides us with the financial security required. New banking
facilities have been agreed which provide stability over three
years during which period Volex will deliver on four key
elements of its business plan:
• Continue to reduce the manufacturing footprint and
move to lower cost locations.
• Develop markets and products that enrich the margin 
potential for the Group.
• Strengthen the competencies in the Group by enhancing 
key skills (e.g. development and sourcing) and re-aligning 
management structure and reporting in selected areas.
• Build alliances to expand the product set and technology 
offering.
The focus on cost, service and value-add remains. The stability
provided by the injection of funds by existing and new
shareholders will allow the Group to maximise the available
market potential and build a Company capable of sustainable
returns over the forthcoming years.
06
58812 Volex R & A 1-16.qxd  19/7/05  10:00 am  Page 6 Volex Group plc Annual Report & Accounts 2005 07
Results
The revenues for the financial year ended 3 April 2005 were up
3% at £245m (8% excluding foreign currency impact) and the
operating profit (pre goodwill amortisation and impairment and
exceptional items) was £1.5m*. Net borrowings closed at
£30.5m reflecting the continuing focus on cash management.
Board changes
During the year there have been a number of changes to the
Board of the Company. Derek Walter joined as Group Finance
Director replacing David Hudson, and Richard Arkle joined as a
non-executive Director.
I am also pleased to report the appointment of two new
Directors, Craig Mullett and Heejae Chae to the Board on 30
June 2005. Both have extensive experience of our industry,
having worked with Amphenol Corporation and will provide
both strategic and operational input to the challenges ahead. 
* See note 1 to the Financial Highlights on page 1.
Having recently celebrated my 60th year, the last twenty of
them spent with Volex, and with the Group now placed on 
a solid financial footing I will step down as Chairman of the
Group and retire from the Board following the EGM and the
admission of shares on 30 June 2005. David Beever is taking
over as Chairman on an interim basis pending the selection 
of a permanent successor and I wish him and the rest of 
the Board every success for the future. I can also confirm 
that a search has already commenced for a permanent 
non-executive Chairman.
Future
The re-structuring of the finances of the Group has provided
significant optimism for the future of this Group. It now is in 
a position to deliver on the strategic agenda of growth and
profitability. With more normalised banking facilities extending
over the next three years and with the funds to address the
objectives of cost elimination and margin improvement, I
believe that shareholder value will be enhanced and the Group
returned to levels of profitability appropriate to its strong
position in this industry.
Dom Molloy
Chairman
30 June 2005
58812 Volex R & A 1-16.qxd  19/7/05  10:00 am  Page 7 58812 Volex R & A 1-16.qxd  19/7/05  10:00 am  Page 8 Volex Group plc Annual Report & Accounts 2005 09
Chief Executive’s
Review
After the downturn experienced through late 2001, Volex
Group has taken significant actions to reduce debt and return
to profitability. Having achieved a revenue peak of £418m in
FY 2001, the Group experienced a dramatic decline to
£230m in FY 2003 and has improved from that low point to
close the last financial year (FY 2005) at a revenue level of
£245m. Despite the limited access to funds, a number of key
actions have been undertaken over this period: 
• Gross borrowings have been reduced from £72m to £45m.
• Gross margins have recovered from a low of 11.6% to FY 
2005 levels of 14.5% through reductions in material costs 
and labour cost reductions by moving to lower cost areas. 
• Facilities have been closed and manufacturing transferred 
to low cost locations and under-utilised assets have been 
disposed of.
• A strong global purchasing function has been established.
• The global account team was enhanced and has delivered 
momentum to the emerging medical and industrial 
business which has grown to 10% of Group revenue. 
• New management and systems have been introduced to 
the harness businesses (Wiring Systems and Ionix).
The financial year 2005 had been expected to improve further
on these achievements and the Group delivered revenues in
2005 at a level of £245m which, when the effects of currency
translation are removed, was a growth year on year of 8%.
The Group has benefited from the general improvement in 
demand across most of the markets that we service but has
also made significant strides in developing new business
opportunities in targeted markets. The broadening of the
customer base in existing and new markets remains a key
focus for the Group and reduces the impact of cyclical
demand patterns in any one sector. 
However, while the market demand profile supported the
revenue ambitions of the Group, the translation of those
revenues to operating profit was disappointing and was
impacted by unanticipated events, some of which were 
one-off in nature.
• The escalation of commodity prices, particularly copper 
and petroleum, impacted the Group by circa £6m in profit.
While the sales teams have been successful in passing 
some of these effects through to the customer base, 
there was a lag between the supply base increases and 
the successful conclusion of negotiations with those 
same customers.
• The turnaround of the North American division was 
adversely impacted by an unsuccessful change in 
management, resulting in a failure to achieve the product 
transfer and margin improvement targets for the business, 
and by a fire in one of two buildings in Tijuana, Mexico 
that created a loss of potential sales in the period.
On a positive note the Group has already addressed many 
of these areas and the better performing divisions achieved
operating margins of 6%+ in the year. Operationally, we
recovered the Tijuana fire impact successfully and the speed
and effectiveness of that recovery bears testament to the
ability of the Group to manage significant events without
impacting the supply line to the customer base. We have
changed the leadership of North America (October 2004) 
and positioned one of the non-executive Directors back into
the regional leadership position. We have built a new team
and strengthened sales, engineering and operations. We 
have developed a strong global purchasing function that 
has mitigated the full effect of rising commodity prices by
materials savings secured elsewhere in the supply chain.
Despite the limited access to funds the Group continued 
to focus on cost reduction, re-profiling the manufacturing
footprint and the level of debt within which the Company 
had to operate. During the year, three further facilities were
announced for closure: Conover (US), Malaysia and
Philippines. The Group strengthened its focus and resource
allocation in global account management to penetrate 
new markets, new accounts and the existing accounts for
incremental revenues, some of which were already realised 
in the reported year. 
“The Group has benefited from the general
improvement in demand across most of 
the markets that we service but has also made
significant strides in developing new business
opportunities in targeted markets.”
John Corcoran Group Chief Executive
58812 Volex R & A 1-16.qxd  19/7/05  10:03 am  Page 9 58812 Volex R & A 1-16.qxd  19/7/05  10:03 am  Page 10 Volex Group plc Annual Report & Accounts 2005 11
Chief Executive’s 
Review 
The demand environment across all our sectors remains
relatively stable. However, there are some indications of
weakness in some sectors through the second half of this
calendar year 2005. Energy prices continue to weigh heavily 
on most sectors; however, the Group has assumed some
level of caution in the forward forecasts of revenue that is
anticipated for the full financial year. The organisation is firmly
committed to achieving growth, which is expected to come
largely from increased market share driven by the consolidation
of the supply base and also from our ability to penetrate further
existing markets and to develop emerging markets. In addition,
the Group was very focused in the second half of the financial
year 2005 on improving the quality of revenue and eliminating
non-profitable or low margin business from its revenue stream.
This is expected to continue and while it may depress
revenues in some areas, it will remove the dilutive effect of
this low margin business from the performance of the Group
overall.
Regional operations
As outlined, sales improved over the prior year by 3%;
however, the currency effect of £13m masks the growth
achieved in specific areas of our global operation. In the
Americas the revenue by destination increased by 3.5% 
but was somewhat impacted by the fire in the Tijuana facility.
This event had a more pronounced effect on the cost base
reduction programme which, when combined with the
change of leadership in the region, caused a significant
under-performance to budget expectations. The Board now
believes that the progress made in the last number of months
has brought this programme back on track albeit six months
behind schedule. The market environment in North America
continues to be relatively stable with some suggestion of
weakness in the computer electronics sector for the
forthcoming calendar year. 
Sales in and into Asia improved by approximately 5.5% over
the previous year in local currency terms. As in prior years,
the strongest performing area was the power cord element of
our business; however, the dynamic of copper price
increases at the commodity level impacted the translation of
this performance into growth in operating profits. At the end
of the financial year the Group announced two site closures in
Asia as we continue to strive for reduction in our global
footprint and a rationalisation of our facilities into larger
manufacturing centres. 
Sales in Volex Europe (Data/telco) increased by 12% over 
the prior year helped by an improved telecommunications
market in the region and also the assembly of OEM systems
for deployment in Asia meant that the sub-assembly portfolio
was supported out of Europe. Additionally, the team in 
Europe secured improved revenue streams into the medical
sector. In the UK the demand environment for our specialist
harness businesses remained relatively stable year on year. 
A recovering environment for the aerospace and defence
harness industry compensated somewhat for some
weakness at the customer level in the automotive harness
area. The smaller units experienced operational and execution
issues that adversely affected the operating profit level. These
are being corrected with the deployment of new management
and existing Group resources diverted to securing sustainable
process improvement.
The Group strategy continues to be focused on exploiting 
its key differentiators to position the Group as the leading
global provider of cable assembly solutions in the market.
We offer breadth across the entire product portfolio of power
and signal products. Our independence of specific
technology allows the Group to leverage the most cost
effective yet technically competent solution available in 
the market place to meet our customers’ requirements.
Increasingly, the capabilities of the Group at the supply chain
level and product development level enable us to provide 
a range of services around and beyond the cable assembly
from design to distribution. With the new investment and the
re-profiling of the financial base, the Group is well positioned
to continue to drive for improvements in market share and
revenues above market growth.
John Corcoran
Group Chief Executive
30 June 2005
58812 Volex R & A 1-16.qxd  19/7/05  10:03 am  Page 11 Financial highlights 2005
Global sales up 2.6% to £244.6m
Operating profit 
(1)
£1.5m
Exceptional operating expenses £8.5m
Goodwill amortisation £0.3m
Profit on sales of properties £1.9m
Loss on ordinary activities before tax 
(1,2)
£2.6m
Loss on ordinary activities before tax £9.5m
(1) Before goodwill amortisation of £0.3m and exceptional operating items of £8.5m
(2) Before profit on sale of properties £1.9m
Turnover by market sector Turnover by product
58812 Volex R & A 1-16.qxd  19/7/05  10:03 am  Page 12 Volex Group plc Annual Report & Accounts 2005 13
Financial
Review
Turnover for the 52 weeks ended 3 April 2005 at £244.6m
was 2.6% up over the 2004 financial year, (which included 
an extra week), despite a £13m negative currency effect. 
Year on year the average exchange rate for the US dollar fell
9% against the pound sterling, the Singapore dollar and the
Brazilian real both weakened by 6% and the Euro by 2%. 
A geographical review of sales by destination showed sales 
in Europe (excluding UK) in sterling terms increase by 11.7%
to £63.1m and in the Americas increase by 3.5% to £77.3m.
Sales in Asia were very slightly lower by £0.3m at £65.6m
and sales in the UK were down by 7% to £38.5m. 
A comparison of Group sales by source or manufacturing
location, based on gross sales including intra-Group trading
showed a year on year improvement in Asia of £6.7m, 7%, 
to £99.6m gross sales accounting for 39% of the Group’s
output (2004 – 37%). America’s gross output declined by
£1.3m, 2%, in sterling terms to £77.2m over the previous
year and represented 30% of Group’s total gross output
(2004 – 31%). Sales sourced from Europe (excluding UK)
improved by £3.1m, 6%, to £51.5m and accounted for 
20% of the Group’s gross output (2004 – 19%). UK sales
decreased by £1.8m, 6%, to £29.8m, 11% of the Group’s
gross output (2004 – 13%). Intra-Group sales remained
relatively unchanged at £13.6m. Additional analyses of sales
by product category and market sector are given in note 2 
to the results.
Gross profit was 14.5% compared with 14.4% in the previous
year. The impact of raw material prices affected the Group
considerably with copper costs alone estimated to have
increased by some £6m year on year but ongoing cost
reduction programmes including procurement and value added
engineering programmes helped mitigate those cost increases
and the effect of the fire at Tijuana in September 2004. 
The Group recorded an operating profit (pre goodwill
amortisation of £0.3m (2004 - £0.3m) and exceptional
operating items of £8.5m (2004 - £6.7m)) for the year of
£1.5m (2004 - £2.5m). The translation of foreign currency
operating profits into sterling had an adverse impact of £0.2m. 
The fire at Tijuana, Mexico in September also impacted
production and excluding the under-recovery on the 
insurance claim is estimated to have cost the Group in 
total at the operating profit line at least an additional 
£0.6m of costs.
Profits in Asia were lower in 2005 compared with 2004, 
as Asia experienced a lower second half in 2005 than the 
first half. Losses in North America in 2005 were reduced as
the second half showed improvement but the fire at Tijuana
held back its recovery. Europe (excluding the UK) continued
its profitable recovery from the restructuring in 2004 and
reported a better second half than the first half in 2005. 
UK harness operations as a whole had a disappointing 
year in 2005 with increased losses in the second half. 
Exceptional costs for FY 2005 of £8.5m relate to the
provisions for three property leases of £3.3m, a write off 
of an automated manufacturing line and costs of closure 
relating to one site in Poland, the factories in Malaysia and
the Philippines and the Conover, US site. The exceptional
costs also include £0.9m under-recovery of the insurance
claim relating to the Tijuana fire in September 2004 pending
negotiations. The goodwill remaining on the investment in
Brazil of £1.7m has been written off following the initial write
off in 2002. 
The operating loss after charging goodwill amortisation 
and exceptional operating items was a loss of £7.3m 
(2004 – loss of £4.5m). During 2005 five properties were 
sold and realised a profit of £1.9m. These sales included 
the sales of the head offices of the Volex Europe and the
Volex Asia divisions with partial and full leasebacks
respectively. In the case of the Volex Europe head office this
was the culmination of the programme begun in the 2002 
financial year to move production from Ireland to lower 
cost European sites in Poland and Croatia. 
“As a result of the equity raising and
the new three year banking facilities,
the Group’s financial position has
been very significantly strengthened
and enhanced.”
Derek Walter Group Finance Director
58812 Volex R & A 1-16.qxd  19/7/05  10:03 am  Page 13 14
Finance charges (net) included interest costs of £3.2m similar
to last year plus amortisation costs of £0.2m (2004 - £0.7m)
relating to the bank facilities obtained through to 30 June
2004 and a further £0.7m relating to the one year facilities’
extension negotiated at the end of the 2004 financial year.
Taxation
Despite an overall Group loss before tax, there was a tax
charge of £4.4m (2004 - £2.9m). This charge related to taxes
paid in countries where taxable profits were made and also
included a provision of £1.1m in respect of tax relating to an
overseas subsidiary in respect of prior periods. Deferred tax
assets totalling £0.8m have been written off.
The result for the financial year after tax was a loss of £13.9m
(2004 – loss of £11.2m).
Earnings per share
Basic loss per share this year of (47.2)p compares with
(39.1)p in the prior year. The adjusted loss per share 
(arrived at after adding back exceptional operating items,
profit on sale of fixed assets and goodwill amortisation)
shows a deterioration from (14.7)p in 2004 to (23.8)p per
share. The earnings per share figures are distorted by the
higher than normal tax charge as referred to above and
adding back £1.1m in respect of the overseas prior years’ 
tax charge and the deferred tax assets written off of £0.8m 
in total, the adjusted loss would have been reduced to
(17.2)p per share.
Funds flow
During the year there was a net inflow of funds before
financing of £0.6m, comprising inflows of £1.6m from
operations and £7.8m from the disposal of fixed assets, in 
part offset by outgoings of £2.1m on capital expenditure
(excluding new finance leases), £4.5m on interest/financing
costs and £2.2m of taxation payments. Currency translation
of £0.7m impacted favourably on the debt position during 
the year. Fixed asset additions in the Group totalled £2.2m
(2004 - £2.5m) including new finance leases during the year,
less than half the depreciation charge. 
Borrowings
The Group’s net borrowings at the end of the year were
£30.5m (2004 - £31.6m). These borrowings resulted in a
year-end gearing ratio of net borrowings to shareholders’
funds of 162% (2004 – 97%).
On 29 June 2005, the EGM approved the proposed £19m
(£15.8m net of £3.2m costs) equity capital raising. Following
the admission of the new shares on 30 June, new three year
banking facilities came into effect. Of the £3.2m fund raising
costs incurred, the element attributable to the renegotiation
of the banking facilities will have amounted to approximately
£1.7m (excluding arrangement fees) and will be amortised
over the life of the facilities as a charge.
As a result of the equity raising and the new three year
banking facilities, the Group’s financial position has been
very significantly strengthened and enhanced. 
International Financial Reporting Standards
In 2006 Volex Group plc will be required to produce its
financial statements in accordance with IFRS. The process
regarding the endorsement of IFRS by the EU Commission 
is ongoing and there may therefore be changes prior to 
IFRS being adopted by the Company. The first numbers to 
be reported in this format will be in respect of the six month
period ending 2 October 2005. This will include appropriate
comparatives for FY 2005. The areas considered to have the
most significant impact for Volex Group plc are in respect of
defined benefit pension schemes and hedge accounting.
The Group will be required to reflect the deficit of £4.1m 
on its two closed UK defined benefit pension schemes in 
the Group’s balance sheet. The impact of the new foreign
exchange hedging rules is not clear.
The Directors believe that these are the major adjustments 
to the Group’s financial statements which will arise on
transition to IFRS. As there is still work to do to finalise a
range of minor adjustments and to review the completeness
of the adjustments, it is therefore possible that other
adjustments may come to light which will impact the Group 
in the preparation of the first full set of IFRS financial
statements for the year ending 2 April 2006.
Financial 
Review 
58812 Volex R & A 1-16.qxd  19/7/05  10:03 am  Page 14 Treasury
The Group has a central treasury function, which monitors
and updates treasury controls throughout the Group in line
with Board policies. Subject to these controls, day to day
foreign exchange transactions are dealt with at the operating
unit level with the Group’s foreign exhange policy being
generally to hedge material transaction exposures. 
The Group regularly reviews its asset risk management
strategy and through internal financial controls and the use 
of appropriate risk limitation instruments, principally insurance
policies, considers it has adequate financial protection against
potentially significant operating risks.
The Group holds or issues financial instruments for three
main purposes - to finance its operations, to manage the
interest rate and currency risks arising from its operations 
and from its sources of finance and for trading purposes. 
Various financial exposures – for example, trade debtors,
trade creditors, accruals and prepayments – arise directly
from the Group’s operations.
The Group finances its operations by a mixture of retained
profits and bank borrowings. During 2005, the Group has
borrowed in the major global debt markets in a range of
currencies at floating rates of interest. Following the year end
the Group has entered into new banking facilities which allow
for a combination of current and medium term borrowings
and consideration will be given to the use of derivatives to
give the desired interest rate profile. 
The main risks arising from the Group’s financial instruments
are interest rate risk, liquidity risk and foreign currency risk.
The Board reviews and agrees policies for managing each 
of these risks and they are summarised below. These policies
have remained unchanged during the year.
Interest rate risk
The Group’s policy is to borrow in currencies at both fixed
and floating rates of interest so as to generate the desired
interest profile and to manage the Group’s exposure to
interest rate fluctuations. The Group’s policy is to keep its
medium term borrowings at rates of interest fixed for up to 
6 month periods.
Liquidity risk
The Group’s objective is to maintain a balance between
continuity of funding and flexibility through the use of
borrowings with a range of maturities. The Group’s new 
three year revolving bank facilities, which include an overdraft
facility to allow short-term flexibility, will assist in this matter.
Currency risk
Although the Group is headquartered in the UK, it has a
significant investment in overseas operations in the USA,
Canada, Brazil, Singapore, China, Ireland, Croatia, and
Poland. As a result, the Group’s sterling balance sheet can 
be significantly affected by movements in exchange rates
between pound sterling and the currencies of these countries.
The Group seeks to mitigate the effect of these structural
currency exposures by borrowing in the same currencies as
the operating (or “functional”) currencies of its main operating
units. In managing its structural currency exposures, the
Group’s objectives are to maintain a low cost of borrowings
whilst hedging against currency movements.
The Group also has transactional currency exposures. 
Such exposures arise from sales or purchases by an
operating unit in currencies other than the unit’s functional
currency. The Group’s policy is that all its operating units 
use forward currency contracts to eliminate the currency
exposure on any significant debtor and creditor balances. 
Derek Walter
Group Finance Director
30 June 2005
Volex Group plc Annual Report & Accounts 2005 15
Financial 
Review 
58812 Volex R & A 1-16.qxd  19/7/05  10:03 am  Page 15 Board of
Directors
As at 30 June 2005 
Dom Molloy
Chairman
Dom Molloy, 60, was appointed Chairman in July 2002 having joined
the Board as Chief Executive in May 1996. Prior to that appointment,
Mr. Molloy had served as President of Volex Inc., responsible for the
Group’s operations in North America and Ireland. Mr. Molloy is a
member of the Remuneration and Nominations Committees.
Richard Arkle
Non-Executive Director
Richard Arkle, 56, joined the Board as a non-executive Director on
20 April 2005. He recently retired as a Partner at KPMG LLP, where
he played a key role in developing the Transaction Services practice
into a UK market leadership position. He was a Partner at KPMG
LLP (and predecessor practices) from 1 October 1982 to his
retirement on 30 September 2004. Mr. Arkle is a member of the
Audit, Remuneration and Nominations Committees.
David Beever
Non-Executive Director
David Beever, 64, joined the Board in August 2002. He is currently
Chairman of KPMG Corporate Finance and a previous Vice Chairman
of SG Warburg. He is Deputy Chairman of London & Continental
Railways Limited and a non-executive Director of JJB Sports plc and
The Paragon Group of Companies Plc. Mr. Beever is Chairman of the
Audit Committee and a member of the Remuneration and Nominations
Committees.
Craig Mullett
Non-Executive Director
Craig Mullett, 36, was appointed as a non-executive Director 
on 30 June 2005. He was previously a Director of Business
Development at Amphenol and is currently President of Branison
Group LLC.
John Roberts
Non-Executive Director
Senior Independent Director
John Roberts, 58, joined the Board as a non-executive Director 
in January 1999. He is Chief Executive of United Utilities, was
previously Chief Executive of Hyder Utilities (comprising Welsh 
Water and South Wales Electricity) and before that was Finance
Director and then Chief Executive of Manweb plc. Mr. Roberts is
Chairman of the Remuneration and Nominations Committees and a
member of the Audit Committee.
John Corcoran
Group Chief Executive
John Corcoran, 43, joined the Board in May 2002 having previously
served as Managing Director of Volex Europe Limited, a subsidiary
company. Before joining the Company in 1999 Mr. Corcoran held 
a number of management positions within the European operations
of Cabletron Systems and Nortel Networks, most recently as the
General Manager of Nortel Networks in Galway, Ireland.
Derek Walter
Group Finance Director
Derek Walter, 57, joined the Board as Group Finance Director on 
22 October 2004. He was previously Group Finance Director with 
a number of multi-national companies, including most recently 
with Pressac Group plc, Braemar Seascope Group plc and Scapa
Group plc.
Mark Ashcroft
Group Director of Corporate Affairs
Mark Ashcroft, 48, joined the Board as a Director in March 2001. 
Mr. Ashcroft was admitted as a Solicitor in 1981 and joined Volex 
in 1984 as the Company’s first in-house legal adviser. He was
appointed Company Secretary in 1992 and continues in that role 
as part of a wider corporate affairs brief.
Heejae Chae 
Chief Operating Officer
Heejae Chae, 36, was appointed as an executive Director on 30
June 2005. He was previously worldwide General Manager of the
Radio Frequency Group of Amphenol.
Don Payzant
Group Executive Director
Don Payzant, 55, was appointed a Director in August 1993. He
founded Cable Products Inc. in 1979 and upon selling his majority
shareholding to the Company in 1991, proceeded to serve as
President of Volex Inc. Upon leaving executive employment with the
Group in 1995, Mr. Payzant became a non-executive Director of the
Group and he also served as CEO of Newark Electronics until 1998.
Mr. Payzant was re-appointed as President of Volex Inc. and became
an executive Director of the Company in November 2004.
58812 Volex R & A 1-16.qxd  19/7/05  10:03 am  Page 16 Volex Group plc Annual Report & Accounts 2005 17
Consolidated Profit and
Loss Account
52 weeks 53 weeks
2005 2004
Notes £’000 £’000
Turnover
Continuing operations 2 244,551 238,353
Cost of sales (209,062) (204,108)
Gross profit 35,489 34,245
Other operating expenses (net) 3 (42,795) (38,767)
Operating profit before goodwill amortisation and
exceptional operating items 1,528 2,486
Exceptional operating items 4 (8,532) (6,680)
Amortisation of goodwill (302) (328)
Operating loss – continuing operations (7,306) (4,522)
Profit on sale of properties 1,918 –
Loss on ordinary activities before finance charges (5,388) (4,522)
Finance charges – interest (net) 6 (3,184) (3,140)
– refinancing costs and amortisation of debt issue costs 7 (932) (683)
(4,116) (3,823)
Loss on ordinary activities before taxation 8 (9,504) (8,345)
Tax on loss on ordinary activities 10 (4,424) (2,861)
Loss for the financial year (13,928) (11,206)
Other finance costs of non-equity shares 11 (6) (6)
Loss for the financial year transferred from reserves 25 (13,934) (11,212)
Adjusted loss per ordinary share 12 (23.8)p (14.7)p
Basic and diluted loss per ordinary share 12 (47.2)p (39.1)p
The notes on pages 24 to 43 are an integral part of and should be read in conjunction with this consolidated profit and loss
account.
For the financial year ended 3 April 2005 (4 April 2004)
58812 Volex Rep & Accs 17-43  18/7/05  2:42 pm  Page 17 18
Consolidated Statement of
Total Recognised Gains and Losses
2005 2004
Notes £’000 £’000
Loss for the financial year (13,928) (11,206)
Currency variations 25 266 (2,335)
Total recognised losses relating to the financial year (13,662) (13,541)
For the financial year ended 3 April 2005 (4 April 2004)
Reconciliation of Movements in
Consolidated Shareholders’ Funds
2005 2004
Notes £’000 £’000
Loss for the financial year (13,928) (11,206)
Dividends paid 11 – –
Other finance costs of non-equity shares 11 (6) (6)
Loss for the financial year transferred from reserves (13,934) (11,212)
Currency variations 266 (2,335)
New share capital subscribed – 939
Other finance costs of non-equity shares 6 6
Net decrease in shareholders’ funds (13,662) (12,602)
Opening shareholders’ funds 32,531 45,133
Closing shareholders’ funds 18,869 32,531
The notes on pages 24 to 43 are an integral part of and should be read in conjunction with these statements.
For the financial year ended 3 April 2005 (4 April 2004)
58812 Volex Rep & Accs 17-43  18/7/05  2:42 pm  Page 18 Volex Group plc Annual Report & Accounts 2005 19
Balance Sheets
Group Company
2005 2004 2005 2004
Notes £’000 £’000 £’000 £’000
Fixed assets
Goodwill 13 1,760 3,798 – –
Tangible assets 14 13,568 23,872 1,585 3,626
Investments 15 – – 67,701 48,168
15,328 27,670 69,286 51,794
Current assets
Stocks 16 28,030 29,345 3,817 3,875
Debtors 17 50,381 50,358 18,497 35,066
Cash at bank and in hand 22 14,962 11,919 5,668 1,854
93,373 91,622 27,982 40,795
Creditors: amounts falling due within one year 18 (85,633) (47,175) (61,885) (13,222)
Net current assets/(liabilities) 7,740 44,447 (33,903) 27,573
Total assets less current liabilities 23,068 72,117 35,383 79,367
Creditors: amounts falling due after more than one year 19 (51) (39,586) (29,652) (68,297)
Provisions for liabilities and charges 21 (4,148) – (2,181) –
Net assets 18,869 32,531 3,550 11,070
Capital and reserves
Called up share capital 23 7,465 7,465 7,465 7,465
Share premium account 25 20,986 20,986 20,986 20,986
Other reserves 25 (3,766) (4,032) (6,456) (6,041)
Profit and loss account 25 (5,816) 8,112 (18,445) (11,340)
Shareholders’ funds* 18,869 32,531 3,550 11,070
*Including non-equity interests of £80,000 (2004 – £80,000). See note 23.
The accounts on pages 17 to 43 were approved by the Board of Directors on 30 June 2005 and signed on its behalf by:
J. Corcoran
Group Chief Executive
D.E.P . Walter
Group Finance Director
The notes on pages 24 to 43 are an integral part of and should be read in conjunction with these balance sheets.
At 3 April 2005 (4 April 2004)
58812 Volex Rep & Accs 17-43  18/7/05  2:42 pm  Page 19 20
Consolidated Cash Flow
Statement
2005 2004
Notes £’000 £’000 £’000 £’000
Net cash inflow from operating activities 27a 1,583 5,614
Return on investments and servicing of finance
Interest received 59 218
Interest paid (3,859) (3,348)
Refinancing costs (743) (1,000)
Net cash outflow from returns on investments
and servicing of finance (4,543) (4,130)
Taxation
UK corporation tax received – 240
Overseas tax paid (2,159) (36)
Tax (paid)/received (2,159) 204
Capital expenditure
Purchase of tangible fixed assets (2,061) (2,243)
Sale of tangible fixed assets 7,826 470
Disposal of assets held for resale – 1,189
Net cash inflow/(outflow) from capital expenditure 5,765 (584)
Cash inflow before financing 646 1,104
Financing
Issue of ordinary share capital – 939
Increase in borrowings 1,536 –
Repayment of loans – (3,136)
Capital element of finance lease rentals (136) (25)
Net cash inflow/(outflow) from financing 1,400 (2,222)
Increase/(decrease) in cash in the financial year 27c 2,046 (1,118)
The notes on pages 24 to 43 are an integral part of and should be read in conjunction with this statement.
For the financial year ended 3 April 2005 (4 April 2004)
58812 Volex Rep & Accs 17-43  18/7/05  2:42 pm  Page 20 Volex Group plc Annual Report & Accounts 2005 21
Statement of Accounting Policies
The principal Group accounting policies are summarised below. They have all been applied consistently throughout the financial
year and the preceding financial year. The Group prepares its accounts for the period ending on the Sunday following the Friday
which falls closest to the accounting reference date of 31 March each year. The current year accounts have been drawn up for the
financial year which is the 52 week period ended 3 April 2005 (2004 – 53 week period ended 4 April 2004).
(a) Basis of accounting
The accounts are prepared under the historical cost convention, modified to include the revaluation of certain fixed assets and in
accordance with applicable UK accounting standards.
(b) Basis of consolidation
The Group accounts consolidate the accounts of Volex Group plc and its subsidiary undertakings drawn up to the year end date.
The results of subsidiaries acquired or sold are consolidated for the periods from or to the date on which control passed.
Acquisitions are accounted for under the acquisition method.
(c) Intangible assets – goodwill
Goodwill arising on the acquisition of subsidiary undertakings and businesses, representing any excess of the fair value of the
consideration given over the fair value of the identifiable assets and liabilities acquired, is capitalised and written off on a straight
line basis over its useful economic life, which is a maximum of twenty years. Provision is made for any impairment. 
Goodwill arising on acquisitions in the year ended 31 March 1998 and earlier periods was written off to reserves in accordance
with the accounting standard then in force. As permitted by the current accounting standard the goodwill previously written off to
reserves has not been reinstated in the balance sheet. On disposal or closure of a previously acquired business, the attributable
amount of goodwill previously written off to reserves is included in determining the profit or loss on disposal.
(d) Intangible assets – research and development
Research and development expenditure is written off as incurred.
(e) Intangible assets – patents and trade marks
Patents and trade marks are written off on purchase or registration.
(f) Tangible fixed assets
Depreciation is provided on all tangible fixed assets, other than investment properties and freehold land, at rates calculated to
write off the cost or valuation, less estimated residual value, of each asset on a straight-line basis over the expected useful life, as
follows:
Freehold and long leasehold buildings – up to 50 years
Plant and machinery – up to 10 years
Residual value is calculated on prices prevailing at the date of acquisition or revaluation.
(g) Investments
Except as stated below, fixed asset investments are shown at cost less provision for impairment. Current asset investments are
stated at the lower of cost and net realisable value.
In the Company balance sheet, for investments in subsidiaries acquired by the issue of shares qualifying for merger relief, cost is
measured by reference to the nominal value only of the shares issued. Any premium is ignored.
58812 Volex Rep & Accs 17-43  18/7/05  2:42 pm  Page 21 22
Statement of Accounting Policies
(h) Stocks
Stocks are stated at the lower of cost and net realisable value. Cost includes materials, direct labour and an attributable proportion
of manufacturing overheads based on normal levels of activity. Net realisable value is based on estimated selling price, less further
costs expected to be incurred to completion and disposal. Provision is made for obsolete, slow-moving or defective items where
appropriate.
(i) Taxation
Current tax, including UK corporation tax and foreign tax, is provided at amounts expected to be paid (or recovered) using the tax
rates and laws that have been enacted or substantially enacted by the balance sheet date.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date
where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have
occurred at the balance sheet date. Timing differences are differences between the Group's taxable profits and its results as
stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from
those in which they are recognised in the financial statements.
A net deferred tax asset is regarded as recoverable and therefore recognised only when, on the basis of all available evidence, it
can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying
timing differences can be deducted.
Deferred tax is not recognised when fixed assets are revalued unless by the balance sheet date there is a binding agreement to
sell the revalued assets and the gain or loss expected to arise on sale has been recognised in the financial statements. Neither is
deferred tax recognised when fixed assets are sold and it is more likely than not that the taxable gain will be rolled over, being
charged to tax only if and when the replacement assets are sold.
Deferred tax is recognised in respect of the retained earnings of overseas subsidiaries and associates only to the extent that, at
the balance sheet date, dividends have been accrued as receivable or a binding agreement to distribute past earnings in future
has been entered into by the subsidiary or associate.
Deferred tax is measured at the average tax rates that are expected to apply in the periods in which the timing differences are
expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is measured on a non-discounted basis.
(j) Turnover and revenue recognition
Turnover represents amounts receivable from third parties for goods and services provided in the normal course of business, net
of trade discounts, VAT and other sales-related taxes. Turnover is recognised upon shipment of goods.
(k) Pension costs and other post-retirement benefits
For defined benefit schemes, in accordance with SSAP 24 the amount charged to the profit and loss account in respect of
pension costs and other post-retirement benefits is the estimated regular cost of providing the benefits accrued in the year,
adjusted to reflect variations from that cost. As the defined benefit schemes are now closed no regular cost is incurred. The assets
of the schemes are held separately from those of the Group in separate trustee administered funds. Differences between amounts
charged to the profit and loss account and amounts funded are shown as either provisions or prepayments in the balance sheet.
For defined contribution schemes the amount charged to the profit and loss account in respect of pension costs and other post-
retirement benefits is the amount of the contributions payable in the year. Differences between contributions payable in the year
and contributions actually paid are shown as either accruals or prepayments in the balance sheet. 
The supplementary disclosures required under FRS17 are provided in respect of the Group’s pension arrangements.
58812 Volex Rep & Accs 17-43  18/7/05  2:42 pm  Page 22 Volex Group plc Annual Report & Accounts 2005 23
Statement of Accounting Policies
(l) Foreign currency
Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction or, if hedged, at the forward
contract rate. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates
of exchange prevailing at that date or, if appropriate, at the forward contract rate.
The results of overseas operations are translated at the average rates of exchange during the period and their balance sheets at
the rates ruling at the balance sheet date. Exchange differences arising on translation of the opening net assets and results of
overseas operations and on foreign currency borrowings, to the extent that they hedge the Group’s investment in such operations,
are dealt with through reserves. All other exchange differences are included in the profit and loss account.
(m) Leases
Assets held under finance leases and other similar contracts, which confer rights and obligations similar to those attached to
owned assets, are capitalised as tangible fixed assets and are depreciated over the shorter of the lease terms and their useful
lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the profit
and loss account over the period of the leases to produce a constant rate of charge on the balance of capital repayments
outstanding. Hire purchase transactions are dealt with similarly, except that assets are depreciated over their useful lives.
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on
such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line
basis over the lease term, except where the period to the review date on which the rent is first expected to be adjusted to the
prevailing market rate is shorter than the full lease term, in which case the shorter period is used.
(n) Government grants
Government grants relating to tangible fixed assets are treated as deferred income and released to the profit and loss account
over the expected useful lives of the assets concerned. Other grants are credited to the profit and loss account as the related
expenditure is incurred. 
(o) Provisions
Provision is made for the anticipated net costs of onerous leases. The provision is set up for the payment of annual rental costs on
empty properties and to meet shortfalls on sub-tenanted property.
(p) Derivative financial instruments
The Group uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The
Group does not hold or issue derivative financial instruments for speculative purposes.
For a forward foreign exchange contract to be treated as a hedge, the instrument must be related to actual foreign currency
assets or liabilities or to a probable commitment. It must involve the same currency or similar currencies as the hedged item and
must also reduce the risk of foreign currency exchange movements on the Group’s operations. Gains and losses arising on these
contracts are deferred and recognised in the profit and loss account or as adjustments to the carrying amount of fixed assets, only
when the hedged transaction has itself been reflected in the Group’s accounts.
For an interest rate swap to be treated as a hedge the instrument must be related to actual assets or liabilities or a probable
commitment and must change the nature of the interest rate by converting a fixed rate to a variable rate or vice versa. Interest
differentials under these swaps are recognised by adjusting net interest payable over the periods of the contracts.
If an instrument ceases to be accounted for as a hedge, for example, because the underlying hedged position is eliminated, the
instrument is marked to market and any resulting profit or loss recognised at that time.
58812 Volex Rep & Accs 17-43  18/7/05  2:42 pm  Page 23 24
Notes to the Accounts
1 Holding company profit and loss account and movement in stareholders’ funds
As permitted by section 230 of the Companies Act 1985 the Company has not presented a separate profit and loss account.
The Company’s loss after taxation for the financial year, determined in accordance with the Act, was £7,105,000 (2004 – loss
of £679,000).
The movement in shareholders’ funds from £11,070,000 to £3,550,000 comprises the loss noted above plus £6,000 other
finance costs of non-equity shares, to give a loss transferred from reserves of £7,111,000, adverse currency variations
movement of £415,000 and £6,000 credit associated with other finance costs of non-equity shares.
2 Segment information
External sales Total sales
Turnover by geographical area by destination by source
2005 2004 2005 2004
£’000 £’000 £’000 £’000
restated
United Kingdom 38,542 41,343 29,810 31,590
Other Europe 63,075 56,457 51,500 48,414
Total Europe 101,617 97,800 81,310 80,004
The Americas 77,325 74,695 77,165 78,456
Asia 65,609 65,858 99,648 92,917
258,123 251,377
Less:  Inter-divisional (13,572) (13,024)
244,551 238,353 244,551 238,353
Turnover by product category
2005 2004
£’000 £’000
Data/Telecommunications 104,409 109,503
Power Cords 110,882 98,056
Harnesses 29,260 30,794
244,551 238,353
Turnover by market sector
2005 2004
£’000 £’000
Data/Telecommunications 94,296 101,715
Consumer Appliances 47,836 44,413
Consumer Electronics 47,821 40,392
Industrial and Medical 25,588 21,354
Vehicle and Aerospace 29,010 30,479
244,551 238,353
Sales by source have been restated in 2004 to take account of the transfer of the business of Volex Powercords Europe to
the Group’s Asian operations.
Operating profit, loss before tax and net assets by geographical area and by class of business are not given as such
disclosure is considered by the Directors to be seriously prejudicial to the interests of the Group. All activity has arisen from
continuing operations.
58812 Volex Rep & Accs 17-43  18/7/05  2:42 pm  Page 24 Volex Group plc Annual Report & Accounts 2005 25
Notes to the Accounts
3 Other operating expenses (net)
2005 2004
Other operating expenses (net) comprise: £’000 £’000
Selling and distribution expenses 15,104 15,482
Administrative expenses – goodwill amortisation 302 328
– exceptional operating items 8,532 6,680
– other 18,757 16,320
Other operating expenses/(income) 100 (43)
Other operating expenses (net) 42,795 38,767
4 Exceptional operating items
2005 2004
£’000 £’000
Closure of manufacturing facilities 1,399 2,991
Impairment of goodwill (note 13) 1,736 –
Impairment of automated manufacturing line/tangible fixed assets 1,223 3,396
Lease provisions 3,298 –
Under-recovery of insurance claim 876 –
Loss on disposal of current asset investment – 293
8,532 6,680
In 2005, costs of closure relate to one site in Poland and facilities in Malaysia, Philippines and Conover, US and include a
fixed asset impairment of £228,000. The remaining goodwill relating to the Brazilian operations and tangible fixed assets
relating to an automated manufacturing line have been written off. Provisions have been recorded with respect to three
property leases. The expected under-recovery of the insurance claim relating to the Tijuana fire has been recorded.
The taxation effect of these exceptional items was £nil.
5 Exchange rates
The principal exchange rates used in the preparation of the accounts are:
Average % Change Year End % Change
2005 2004 vs £ 2005 2004 vs £
United States dollar 1.84 1.68 (8.7) 1.89 1.83 (3.2)
Singapore dollar 3.09 2.91 (5.8) 3.12 3.07 (1.6)
Euro 1.47 1.44 (2.0) 1.45 1.51 4.1
Canadian dollar 2.36 2.29 (3.0) 2.29 2.41 5.2
Brazilian real 5.28 4.99 (5.5) 5.02 5.29 5.4
Swedish krona 13.35 13.17 (1.3) 13.31 13.92 4.6
6 Finance charges – interest (net)
2005 2004
Net interest costs represent: £’000 £’000
Interest receivable on bank deposits (59) (218)
Interest payable on bank loans and overdraft 3,243 3,358
Finance charges – interest (net) 3,184 3,140
58812 Volex Rep & Accs 17-43  14/7/05  9:47 pm  Page 25 26
Notes to the Accounts
7 Finance charges – refinancing costs and amortisation of debt issue costs
Finance charges include £743,000 incurred during the year on the negotiation of the extension of the Group’s bank facilities
through to 30 June 2005 and amortisation costs of £189,000 (2004 – £683,000) representing the amortisation of the debt
issue costs capitalised in 2003 on renegotiating the Group’s bank facilities for the period through to 30 June 2004.
8 Loss on ordinary activities before taxation
2005 2004
Loss on ordinary activities before taxation is stated after charging/(crediting): £’000 £’000
Depreciation – owned assets 4,492 5,946
– leased assets – 424
Impairment of fixed assets 1,451 3,396
Amortisation of goodwill 302 328
Impairment of goodwill 1,736 –
Operating lease rentals – plant and machinery 865 919
– other 5,786 5,197
Government grants (68) (57)
Auditors’ remuneration – audit services (Group) 229 174
– audit services (Company) 110 110
– non-audit services (world wide) 546 293
Research and development 1,819 1,860
9 Employee costs
2005 2004
a. The average monthly number of persons, including executive Number Number
Directors, employed by the Group during the financial year was: employed employed
Production 8,265 7,586
Sales and distribution 248 309
Administration 1,546 1,402
10,059 9,297
2005 2004
b. Aggregate remuneration comprised: £’000 £’000
Wages and salaries 47,744 50,898
Social security 3,886 3,965
Pensions (see note 28c) 1,847 2,131
53,477 56,994
The Group has received grant assistance from the Industrial Development Agency in Ireland conditional on 60 employees
being employed in Ireland through to June 2009. Employee numbers in Ireland currently exceed this level; however, should
they reduce below this level, €1.4m would become repayable upon demand. 
Details of Directors’ remuneration, share options, long term incentive schemes, pension contributions, pension entitlements
and interests for the year are provided in the audited part of the Directors’ Remuneration Report on pages 56 to 59.
58812 Volex Rep & Accs 17-43  14/7/05  9:47 pm  Page 26 Volex Group plc Annual Report & Accounts 2005 27
Notes to the Accounts
10 Tax on loss on ordinary activities
2005 2004
The tax charge is based on the loss for the financial year and comprises: £’000 £’000
Current tax
UK corporation tax – –
Foreign tax 2,629 1,840
Adjustments in respect of previous years
UK corporation tax – 735
Foreign tax 930 (134)
Total current tax 3,559 2,441
Deferred taxation
Origination and reversal of timing differences 52 (208)
Decrease in estimate of recoverable deferred tax asset 813 628
Total deferred tax (see note 21) 865 420
Total tax on loss on ordinary activities 4,424 2,861
The differences between the total current tax shown above and the amount calculated by applying the standard rate of UK
corporation tax to the loss before tax is as follows:
2005 2004
£’000 £’000
Group loss on ordinary activities before tax (9,504) (8,345)
Tax on loss on ordinary activities at standard UK corporation tax rate of 30% (2004 – 30%) (2,851) (2,503)
Effects of:
Expenses not deductible for tax purposes 3,790 1,449
Non-taxable income (1,193) –
Capital allowances in excess of depreciation 488 619
Timing differences 1,191 52
Lower tax rates on overseas earnings (703) (636)
Non-utilisation of losses 1,907 2,859
Adjustments to tax charge in respect of previous periods 930 601
Group current tax charge for the financial year 3,559 2,441
11 Dividends on equity and non-equity shares
The Directors do not recommend a dividend on the ordinary shares for the year ended 3 April 2005 (2004 – £nil).
2005 2004
£’000 £’000
Other finance costs of non-equity shares
– interim of 3.75p per share (2004 – 3.75p per share) 3 3
– final of 3.75p per share (2004 – 3.75p per share) 3 3
6 6
58812 Volex Rep & Accs 17-43  14/7/05  9:47 pm  Page 27 28
Notes to the Accounts
12 Loss per ordinary share
The calculations of loss per share are based on the following losses and numbers of shares:
2005 Per share 2004 Per share
£’000 p £’000 p
Loss for the financial year (13,928) (47.1) (11,206) (39.1)
Other finance costs of non-equity shares (6) (0.1) (6) –
Basic loss (13,934) (47.2) (11,212) (39.1)
Goodwill amortisation 302 1.0 328 1.1
Exceptional operating items (note 4) 8,532 28.9 6,680 23.3
Exceptional item – profit on sale of properties (1,918) (6.5) ––
Adjusted loss (7,018) (23.8) (4,204) (14.7)
No of shares No of shares
2005 2004
Weighted average number of shares: 29,540,692 28,650,462
Adjusted loss per share (23.8)p (14.7)p
Basic and diluted loss per share (47.2)p (39.1)p
Adjusted loss per share has been calculated on the basis of continuing activities before goodwill amortisation, operating
exceptional items and profit on sale of properties, in each case net of tax. The Directors consider that this loss per share
calculation gives a better understanding of the Group’s loss per share in the year and the prior year. As the Group recorded a
loss per share, the share options are anti-dilutive and therefore there is no difference between the basic and diluted loss per
share. 
13 Goodwill
£’000
Cost
Beginning of financial year 15,858
Exchange adjustment 10
End of financial year 15,868
Amortisation
Beginning of financial year 12,060
Charge for the financial year 302
Impairment (note 4) 1,736
Exchange adjustment 10
End of financial year 14,108
Net book value – end of financial year 1,760
Net book value – beginning of financial year 3,798
58812 Volex Rep & Accs 17-43  14/7/05  9:47 pm  Page 28 Volex Group plc Annual Report & Accounts 2005 29
Notes to the Accounts
14 Tangible fixed assets
Plant and
Group Land and buildings machinery Total
Long
Freehold leasehold
£’000 £’000 £’000 £’000
Cost
Beginning of financial year 6,892 6,973 62,794 76,659
Additions – 43 2,157 2,200
Reclassification (103) 113 (10) –
Disposals (6,269) (3,978) (4,381) (14,628)
Exchange adjustment 264 (82) (1,181) (999)
End of financial year 784 3,069 59,379 63,232
Depreciation
Beginning of financial year 4,276 2,313 46,198 52,787
Charge for the financial year 48 375 4,069 4,492
Impairment (note 4) – – 1,451 1,451
Disposals (3,921) (1,018) (3,531) (8,470)
Exchange adjustment 14 (19) (591) (596)
End of financial year 417 1,651 47,596 49,664
Net book value – end of financial year 367 1,418 11,783 13,568
Net book value – beginning of financial year 2,616 4,660 16,596 23,872
The net book value of tangible fixed assets includes £nil (2004 – £22,000) in respect of assets held under finance
arrangements. Freehold land amounting to £167,000 (2004 – £781,000) has not been depreciated. 
Plant and
Company Land and buildings machinery Total
Long
Freehold leasehold
£’000 £’000 £’000 £’000
Cost
Beginning of financial year 1,266 370 19,197 20,833
Additions – – 172 172
Reclassification (103) 103 – –
Disposals (379) – (1,284) (1,663)
End of financial year 784 473 18,085 19,342
Depreciation
Beginning of financial year 454 95 16,658 17,207
Charge for the financial year (including impairment of £1,223,000) 48 100 1,780 1,928
Disposals (85) – (1,293) (1,378)
End of financial year 417 195 17,145 17,757
Net book value – end of financial year 367 278 940 1,585
Net book value – beginning of financial year 812 275 2,539 3,626
58812 Volex Rep & Accs 17-43  14/7/05  9:47 pm  Page 29 30
Notes to the Accounts
15 Fixed asset investments
Fixed asset investments comprise investments in wholly owned subsidiary undertakings and permanent capital loans.
Shares Loans Total
The movement on these investments during the financial year was as follows: £’000 £’000 £’000
Cost
Beginning of financial year 6,880 51,186 58,066
Repaid – (148) (148)
Additions – 21,618 21,618
Exchange adjustment 148 (82) 66
End of financial year 7,028 72,574 79,602
Provision for impairment
Beginning and end of financial year – 9,898 9,898
Impairment during year – 2,306 2,306
Exchange adjustment – (303) (303)
End of financial year – 11,901 11,901
Net book value – end of financial year 7,028 60,673 67,701
Net book value – beginning of financial year 6,880 41,288 48,168
Details of the Group’s operating subsidiary undertakings are set out below.
United Kingdom:
Volex Group plc operates under a divisional structure in the UK, these divisions being Volex Head Office, Volex Wiring
Systems and Volex Ionix. Volex Group Holdings Ltd is a wholly owned subsidiary of Volex Group plc and is registered in
England and Wales and acts as a holding company.
Overseas:
The operating overseas subsidiary undertakings, the business of which is the manufacture and/or sale of interconnect and
cable assembly products and all of which are wholly owned, are as follows:
Country of
incorporation or
registration and operation
Volex (Asia) Pte Ltd* Singapore
Volex Mayor Cables (HK) Ltd
†
Hong Kong
P .T. Volex Indonesia
†
Indonesia
P .T. Volex Cable Assembly
†
Indonesia 
Volex Japan KK
†
Japan
Volex (Taiwan) Co. Ltd
†
Taiwan
Volex Thailand Co. Ltd
†
Thailand
Volex Interconnect India Pvt Ltd
†
India
Volex Cable Assemblies
(Phils.), Inc.
†
Philippines
Volex do Brasil Ltda* Brazil
Volex Cable Assemblies Sdn Bhd Malaysia 
Volex Canada Inc. Canada
Volex Inc.* USA
Volex Aguascalientes SA de CV
#
Mexico
Volex Hermosillo SA de CV
#
Mexico
Volex de Mexico SA de CV
#
Mexico
Country of
incorporation or
registration and operation
Volex Europe Ltd
#
Republic of Ireland
Volex d.o.o. Croatia
Volex Sweden AB* Sweden
Volex Estonia OU Estonia
Volex Poland Sp z.o.o Poland
Volex Cables (Shenzhen) Co.
+
China
Volex Cable Assembly (Suzhou)
Co. Ltd
+
China
Volex Cable Assembly (Zhongshan)
Co. Ltd
+
China
* these interests are held through 100% owned local parent
companies
#
these interests are held by Volex Inc.
†
these interests are held by Volex (Asia) Pte Ltd
+
these interests are held by Volex Group Holdings Ltd
58812 Volex Rep & Accs 17-43  14/7/05  9:47 pm  Page 30 Volex Group plc Annual Report & Accounts 2005 31
Notes to the Accounts
16 Stocks
Group Company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Raw materials and consumables 13,506 17,881 2,408 2,178
Work in progress 2,425 2,539 907 1,173
Finished goods 12,099 8,925 502 524
28,030 29,345 3,817 3,875
There is no material difference between the balance sheet value of stocks and their replacement cost.
17 Debtors
Group Company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Amounts falling due within one year:
Trade debtors 44,631 45,315 6,050 6,185
Due from subsidiary undertakings – – 11,950 27,574
Other debtors 2,292 2,269 269 547
Prepayments and accrued income 3,458 2,317 228 260
Deferred tax (note 21) – 457 – 500
50,381 50,358 18,497 35,066
18 Creditors: amounts falling due within one year
Group Company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Bank loans and overdrafts – secured 45,315 3,790 44,283 3,723
Obligations under finance leases 138 93 – –
Trade creditors 27,478 32,925 3,545 4,762
Due to subsidiary undertakings – – 11,691 1,744
Other creditors:
– UK corporation tax and foreign taxes 2,993 1,324 – –
– Social security and employee taxes 866 696 215 246
– VAT 150 343 161 152
Accruals and deferred income:
– Government grants – 19 – –
– Other 8,693 7,985 1,990 2,595
85,633 47,175 61,885 13,222
58812 Volex Rep & Accs 17-43  14/7/05  9:47 pm  Page 31 32
Notes to the Accounts
19 Creditors: amounts falling due after more than one year
Group Company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Issue costs – (189) – (189)
Bank loan – secured – 39,652 – 39,652
Obligations under finance leases 43 123 – –
Other 8 – – –
Due to subsidiary undertakings – – 29,652 28,834
51 39,586 29,652 68,297
20 Analysis of borrowings
Borrowings are repayable as follows: Group Company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Issue costs – (189) – (189)
Within 1 year 45,453 3,883 44,283 3,723
Within 2-5 years 43 39,775 – 39,652
Total borrowings 45,496 43,469 44,283 43,186
Subsequent to the year end, new three year revolving banking facilities have been agreed (see note 29).
58812 Volex Rep & Accs 17-43  14/7/05  9:47 pm  Page 32 Volex Group plc Annual Report & Accounts 2005 33
Notes to the Accounts
21 Provisions for liabilities and charges
The movement during the financial year was as follows:
Group Pension Property Deferred Total
leases taxation
£’000 £’000 £’000 £’000
Beginning of financial year ––––
Transferred from debtors (note 17) – – (457) (457)
Charged during financial year 181 3,576 865 4,622
Exchange adjustment – – (17) (17)
End of financial year 181 3,576 391 4,148
Company Pension Property Deferred Total
leases   taxation
£’000 £’000 £’000 £’000
Beginning of financial year ––––
Transferred from debtors (note 17) – – (500) (500)
Charged during financial year 181 2,000 500 2,681
End of financial year 181 2,000 – 2,181
Deferred tax is provided as follows:
Group Company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Excess of tax allowance over book depreciation of fixed assets 632 632 – (500)
Short term timing differences (241) (1,089) – –
Deferred tax provision/(asset) 391 (457) – (500)
A deferred tax asset is recognised within debtors to the extent that the timing difference is expected to reverse in the
foreseeable future.
The unrecognised deferred tax asset is as follows:
Group Company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Shortfall of tax allowances over book depreciation
on tangible fixed assets 2,381 785 2,381 785
Short term timing differences 10,796 9,208 1,761 1,908
Unrecognised asset 13,177 9,993 4,142 2,693
58812 Volex Rep & Accs 17-43  19/7/05  10:07 am  Page 33 34
Notes to the Accounts
22 Derivatives and other financial instruments
Pages 13 to 15 of the Financial Review provide an explanation of the role that financial instruments have had during the
period in creating or changing the risks the Group faces in its activities. The explanation summarises the objectives and
policies for holding or issuing financial instruments and similar contracts and the strategies for achieving those objectives
that have been followed during the period.
The numerical disclosures in this note deal with financial assets and financial liabilities as defined in Financial Reporting
Standard 13, Derivatives and other financial instruments: Disclosures (‘FRS 13’). For this purpose non-equity shares issued
by the Company are dealt with in the disclosures in the same way as the Group’s financial liabilities but separately disclosed.
Certain financial assets such as investments in subsidiary and associated companies are also excluded from the scope of
these disclosures.
As permitted by FRS 13, short-term debtors and creditors have been excluded from the disclosures, other than the currency
disclosures.
a. Interest rate profile
Financial assets:
The Group has no financial assets at 3 April 2005 other than cash deposits with a sterling value of £14,962,000 (2004 –
£11,919,000), which are part of the financing arrangements of the Group. All financial assets were at floating rates, except for
certain immaterial cash deposits, which do not earn interest. The deposits set out below comprise monies placed on the
money market at call and monthly rates as follows:
Currency Floating rate Floating rate
2005 2004
£’000 £’000
Sterling 992 2,757
US dollar 5,543 3,012
Euro 5,005 1,183
Singapore dollar 457 554
Canadian dollar 333 59
Croatian kuna – 278
Brazilian real 286 297
Swedish krona – 1
Chinese renminbi 766 1,234
Polish zloty – 292
Hong Kong dollar 522 897
Malaysian ringitt 454 509
Others 604 846
Total 14,962 11,919
The interest rates on the floating rate financial assets are linked to money markets call and monthly rates in the local financial
market.
58812 Volex Rep & Accs 17-43  19/7/05  10:07 am  Page 34 Volex Group plc Annual Report & Accounts 2005 35
Notes to the Accounts
22 Derivatives and other financial instruments – continued
Financial liabilities:
The interest rate risk profile for the Group’s financial liabilities, which include property provisions, at 3 April 2005 and 4 April
2004 was as follows:
On which
Currency no interest
Floating Fixed is charged Floating Fixed
2005 2005 2005 2005 2004 2004 2004
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Sterling – 80 2,000 2,080 –8080
Euro 1,812 – – 1,812 116 – 116
US dollar 27,074 – 454 27,528 31,205 – 31,205
Singapore dollar 11,506 – 1,122 12,628 7,772 – 7,772
Canadian dollar 5,104 – – 5,104 4,564 – 4,564
Brazilian real –––– 1– 1
Total 45,496 80 3,576 49,152 43,658 80 43,738
The interest rate on sterling non-equity shares is fixed at 7% (see note 24).
The interest rate on floating rate financial liabilities is linked to:
(i) US dollars Three, six and twelve months US dollar LIBOR on liabilities held in the UK and the US prime rate for
liabilities held in the US.
(ii) Singapore dollars Three, six and twelve months Singapore dollar LIBOR on liabilities held in the UK.
(iii) Canadian dollars Three, six and twelve months Canadian dollar LIBOR on liabilities held in the UK.
b. Currency exposures
As explained on page 15 of the Financial Review, the Group’s objectives in managing its structural currency exposures arising
from its net investment overseas are to maintain a low cost of borrowings whilst partially hedging against currency
depreciation. Gains and losses arising from these structural currency exposures are recognised in the statement of total
recognised gains and losses. The Group does not hedge directly the translation exposure of the profit and loss account
whether by use of options or other derivatives.
The table below shows the Group’s currency exposures; in other words, those transactional exposures that give rise to the
net currency gains and losses recognised in the profit and loss account. Such exposures comprise the monetary assets and
monetary liabilities of the Group that are not denominated in the operating currency of the operating unit involved, other than
certain non-sterling borrowings treated as hedges of net investment in overseas operations. As at 3 April 2005 these
exposures were as follows:
Net foreign currency monetary assets/(liabilities)*
Sterling US dollar Yen Euro HK dollar CH Rmb Ind Rupee Mal Ring Thai Baht Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Functional currency 
of Group operation
Sterling – (281) (18) (5) ––––– (304)
Euro 67 (1,138) ––––––– (1,071)
Singapore dollar – 3,616 460 (197) (424) 2,234 563 1,864 486 8,602
Total 67 2,197 442 (202) (424) 2,234 563 1,864 486 7,227
*comprising net trade debtors and creditors denominated in a currency which is different from the functional currency of the
operation. Net trade debtors and creditors denominated in the functional currency are excluded from this analysis.
58812 Volex Rep & Accs 17-43  19/7/05  10:07 am  Page 35 36
Notes to the Accounts
22 Derivatives and other financial instruments – continued
The exposures at 4 April 2004 for comparison purposes were as follows:
Net foreign currency monetary assets/(liabilities)*
Sterling US dollar Yen Euro HK dollar CH Rmb Ind Rupee Mal Ring Thai Baht Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Functional currency
of Group operation
Sterling – (516) (50) (401) ––––– (967)
Euro 1,533 1,181––––––– 2,714
Singapore dollar – 2,847 534 (577) (158) 3,044 766 1,703 602 8,761
Canadian dollar – 960––––––– 960
Total 1,533 4,472 484 (978) (158) 3,044 766 1,703 602 11,468
*comprising net trade debtors and creditors denominated in a currency which is different from the functional currency of the
operation. Net trade debtors and creditors denominated in the functional currency are excluded from this analysis.
The amounts shown in the table above and on page 35 take into account the effect of any derivatives (including forward
contracts) entered into to manage these currency exposures.
c. Maturity of financial liabilities
The maturity profile of the Group’s financial liabilities at 3 April 2005 and 4 April 2004 was as follows:
Non-equity Property
shares Borrowings provisions
(note 24) (note 20) (note 21) Total Total
2005 2005 2005 2005 2004
£’000 £’000 £’000 £’000 £’000
In one year or less – 45,453 619 46,072 3,883
In more than one year but not more than two years – 43 341 384 39,775
In more than two years but not more than five years – – 953 953 –
In more than five years 80 – 1,663 1,743 80
Total 80 45,496 3,576 49,152 43,738
d. Borrowing facilities
The Group had undrawn committed borrowing facilities at 3 April 2005 and 4 April 2004 as follows:
2005 2004 
£’000 £’000
Expiry in one year or less 6,781 7,090
Expiring in more than one year but not more than two years – 365
6,781 7,455
e. Fair values
The Group did not hold any derivative financial instruments at 3 April 2005 or 4 April 2004. There are no differences between
the fair values and book values of the other financial assets and liabilities of the Group.
58812 Volex Rep & Accs 17-43  19/7/05  10:07 am  Page 36 Volex Group plc Annual Report & Accounts 2005 37
Notes to the Accounts
22 Derivatives and other financial instruments – continued
f. Gains and losses on hedges
The Group enters into forward foreign currency contracts to reduce the currency exposures that arise on sales denominated in
foreign currencies. Changes in the fair value of instruments used as hedges are not recognised in the financial statements until
the hedged position matures. There were no forward foreign currency contracts in place at 3 April 2005 or at 4 April 2004.
23 Called up share capital
Authorised Allotted, called up
and fully paid
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Equity:
Ordinary shares of 25p each
(35,680,000 authorised, 29,540,692 allotted (2004 – 29,540,692) 8,920 8,920 7,385 7,385
Non-Equity:
Cumulative preference shares of £1 each
(80,000 authorised and allotted) 80 80 80 80
9,000 9,000 7,465 7,465
All of the shareholders’ funds represent equity interests except for £80,000 in respect of the preference shares (see note 24).
See note 29 for changes in the authorised and issued share capitals since the year end.
At 3 April 2005 there were 494,945 unexercised warrants (2004 – 494,945). The warrants expire after the later of (i) 90 days
from 30 June 2005 and (ii) if the holder remains a committed lender under the existing bank facilities on the Company on 30
June 2005, the earlier of the date on which the warrant holder ceases to be a committed lender or 30 June 2007. The
exercise price is 100p. See note 29 for changes to the terms of these warrants subsequent to the year end.
The following options to subscribe for ordinary shares of 25p each, granted under the terms of the Employee Share Savings
Scheme and the Discretionary Share Option Schemes were outstanding at 3 April 2005:
Normal
No of No of Option exercise
options shares price period
Employee Share Savings Scheme (52 members)
14 3,381 1051p 2003-2006
47 30,955 631p 2004-2007
Discretionary Share Option Schemes (21 members)
2 53,625 455p 1999-2006
1 12,000 410p 2000-2007
1 8,000 485.5p 2000-2007
2 33,500 610p 2001-2008
2 38,500 622.5p 2002-2009
1 20,000 922.5p 2002-2009
17 77,725 1475p 2003-2010
17 91,500 788p 2004-2011
18 76,250 138p 2005-2012
6 227,500 87p 2006-2013
1 15,000 126.5p 2006-2013
7 230,000 147.5p 2007-2014
58812 Volex Rep & Accs 17-43  19/7/05  10:07 am  Page 37 38
Notes to the Accounts
24 Non-equity content of shareholders’ funds
The Company has in issue 80,000 cumulative preference shares of £1 each with the rights to a fixed cumulative preference
dividend payable on the amount paid up or credited as paid up thereon on 31 March and 30 September in each year but not
to any further participation in the profits of the Company.
As a result of the provisions contained in the Finance Act 1998 the cash dividend payable on the cumulative preference
shares of £1 each has reverted to its pre 1973 rate of 7% (previously 4.9%). 
The preference shares also confer the right on a winding up to have the capital paid up or credited as paid up on such
preference shares and all arrears of dividend, whether declared or not up to the commencement of the winding up, paid in
priority to any payment of capital on the ordinary shares but without any further right to participate in profits or assets.
The preference shares do not confer on the holders the right to attend and vote, either in person or by proxy, at any General
Meeting or to have notice of such Meeting unless the Meeting is convened for reducing the capital or winding up or
sanctioning a sale of undertaking or where the proposition to be submitted to the Meeting directly affects the rights and
privileges of the holders or the dividend thereon is in arrears for more than three months.
25 Reserves
Share Profit
premium Other and loss
account reserves account
£’000 £’000 £’000
Group
Beginning of financial year 20,986 (4,032) 8,112
Loss for the financial year – – (13,934)
Other finance costs of non-equity shares –– 6
Exchange adjustment – 266 –
End of financial year 20,986 (3,766) (5,816)
Company
Beginning of financial year 20,986 (6,041) (11,340)
Loss for the financial year – – (7,111)
Other finance costs of non-equity shares –– 6
Exchange adjustment – (415) –
End of financial year 20,986 (6,456) (18,445)
The Group profit and loss reserves include non-distributable reserves in subsidiary companies of £1.1m (2004: £1.1m).  
The profit and loss reserves for the Group and the Company include a non-equity interest of £12,000 (2004 – £6,000).
The cumulative amount of goodwill resulting from acquisitions prior to 31 March 1998 which has been written off was
£33.4m (2004 – £33.4m). Goodwill arising on acquisitions post this date has been capitalised and amortised over its useful
economic life.
58812 Volex Rep & Accs 17-43  19/7/05  10:07 am  Page 38 Volex Group plc Annual Report & Accounts 2005 39
Notes to the Accounts
26 Financial commitments
Capital commitments at the end of the financial year were:
Group Company
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Contracted for but not provided for 196 427 9 –
The annual rentals under operating leases are as follows:
Machinery, plant
Property and motor vehicles
2005 2004 2005 2004
£’000 £’000 £’000 £’000
Group
Payable within 1 year on leases expiring:
– within 1 year 381 820 798 790
– within 1-2 years 1,365 760 106 208
– within 2-5 years 470 757 115 145
– after 5 years 2,251 2,082 1 2
4,467 4,419 1,020 1,145
Company
Payable within 1 year on leases expiring:
– within 1 year – – 90 55
– within 1-2 years – – 25 77
– within 2-5 years 90 90 98 68
– after 5 years 805 815 – 2
895 905 213 202
27 Consolidated cash flow statement
a. Reconciliation of operating loss to net cash inflow 2005 2004
from operating activities £’000 £’000
Operating loss (7,306) (4,522)
Depreciation charges and impairment 5,943 9,766
Goodwill amortised and impaired 2,038 328
Government grants (19) (150)
Loss on sale of tangible fixed assets and asset held for resale – 293
Decrease/(increase) in stocks 1,264 (1,376)
Increase in debtors (297) (2,788)
(Decrease)/increase in creditors (3,800) 4,063
Increase in provisions 3,760 –
Net cash inflow from operating activities 1,583 5,614
Net cash inflow from operating activities pre cash outflows from exceptional operating items 1,975 8,067
Cash outflows from exceptional operating items (392) (2,453)
Net cash inflow from operating activities 1,583 5,614
58812 Volex Rep & Accs 17-43  19/7/05  10:07 am  Page 39 40
Notes to the Accounts
27 Consolidated cash flow statement – continued
Other
4 April non-cash Exchange 3 April 
2004 Cash flow changes movement 2005
b. Analysis of net debt: £’000 £’000 £’000 £’000 £’000
Cash at bank and in hand 11,919 3,096 – (53) 14,962
Overdraft (2,971) (1,050) – (5) (4,026)
2,046
Debt due after one year (39,652) 619 39,689 (656) –
Debt due within one year (819) (2,155) (39,689) 1,374 (41,289)
Finance leases (216) 136 (101) – (181)
(1,400)
Issue costs 189 – (189) – –
Net debt (31,550) 646 (290) 660 (30,534)
Non-cash changes relate to new finance leases entered into during the year, amortisation of issue costs and reclassification
of banking facilities to be due within one year.
2005 2004
c. Reconciliation of net cash flow to movement in net debt: £’000 £’000
Increase/(decrease) in cash in the financial year 2,046 (1,118)
Cash (inflow)/outflow from (increase)/decrease in debt and lease financing (1,400) 3,161
Change in net debt resulting from cash flows 646 2,043
New finance leases (101) (216)
Amortisation of debt issue costs (189) (683)
Translation difference 660 5,238
Movement in net debt in the financial year 1,016 6,382
Net debt – beginning of financial year (31,550) (37,932)
Net debt – end of financial year (30,534) (31,550)
28 Pension arrangements
a. United Kingdom
The Company maintains two Inland Revenue approved defined benefit schemes which are funded by payments held in
independent trusts and were valued at £9.2m as at 3 April 2005. Future accrual of retirement benefits under both schemes
ceased on 31 March 2003 when the schemes were replaced by defined contribution arrangements. Costs are assessed with
the advice of a qualified actuary. The principal actuarial assumptions used at the latest actuarial valuation in August 2004
were: investment return (pre-retirement) of 6.7%, price inflation of 2.5%, pension increase 2.5%. There is no funding for any
non-statutory increases to pensions accruing prior to 6 April 1997.
The actuarial valuation at August 2004 indicated aggregate market values of £1,138,000 and £2,717,000 resulting in funding
levels of 75% and 64% for the Volex Executive Pension Scheme and Volex No. 1 Pension Scheme respectively. The
Company intends to eliminate the deficits on these schemes within a 15 year period by contributing £105,000 and £252,000
per annum (increasing in line with RPI) to the respective schemes.
58812 Volex Rep & Accs 17-43  19/7/05  10:07 am  Page 40 Volex Group plc Annual Report & Accounts 2005 41
Notes to the Accounts
28 Pension arrangements – continued
The Company also has two Inland Revenue approved defined contribution schemes and makes contributions to a Group
personal pension plan.
Additional disclosures regarding the Group’s defined benefit pension schemes are required under the transitional provisions
of FRS17 “Retirement benefits” and these are set out below. As a result of the different valuation bases used and the
different valuation dates there are significant differences between the results of the SSAP24 and FRS17 valuations.
The actuarial valuation described on page 40 has been updated at 3 April 2005 by the Scheme Actuary using revised
assumptions that are consistent with the requirements of FRS17. Investments have been valued, for this purpose, at fair
value.
The major assumptions used for the FRS17 valuation were:
2005 2004 2003
Rate of increase in salaries n/a n/a 2.6%
Rate of increase in pensions in payment 2.6% 2.9% 2.6%
Discount rate 5.4% 5.5% 5.4%
Inflation assumption 2.7% 2.9% 2.6%
The fair value of the assets in the schemes, the present value of the liabilities in the schemes and the expected rate of return
at each balance sheet date were:
2005 2005 2004 2004 2003 2003
% £’000 % £’000 % £’000
Equities 6.6 6,483 6.7 5,991 6.6 4,869
Bonds 4.6 2,569 4.7 2,331 4.6 2,156
Property 6.6 164 6.7 144 6.6 180
Total fair value of assets 9,216 8,466 7,205
Present value of scheme liabilities (13,311) (12,094) (11,698)
Deficit in the scheme (4,095) (3,628) (4,493)
Related deferred tax asset – ––
(4,095) (3,628) (4,493)
The FRS17 liability has changed as set out below:
2005 2004
£’000 £’000
Beginning of financial year (3,628) (4,493)
Contributions 162 126
Other finance costs (142) (197)
Actuarial (loss)/gain (487) 936
End of financial year (4,095) (3,628)
58812 Volex Rep & Accs 17-43  19/7/05  10:07 am  Page 41 42
Notes to the Accounts
28 Pension arrangements – continued
The following is an analysis of the amount that would have been debited/credited to operating profit under FRS17:
2005 2004
£’000 £’000
Current service cost – –
Past service cost – –
Gain on settlements and curtailments – –
– –
The following is an analysis of the amount that would have been charged to net finance income under FRS 17:
2005 2004
£’000 £’000
Expected return on pension scheme assets 514 423
Interest on pension scheme liabilities (656) (620)
(142) (197)
The following is an analysis of the actuarial (loss)/gain that would have been recognised in the statement of total recognised
gains and losses:
2005 2004
£’000 £’000
Actual return less expected return on pension scheme assets 431 1,151
Experience gains and losses arising on the scheme liabilities 355 –
Changes in assumptions underlying the present value of the scheme liabilities (1,273) (215)
(487) 936
The following shows the history of experience gains and losses:
2005 2004 2003
Difference between the expected and actual return on scheme assets:
Amount (£’000) 431 1,151 (3,140)
Percentage of scheme assets 5% 14% (44%)
Experience gains and losses on scheme liabilities:
Amount (£’000) 355 – 280
Percentage of the present value of scheme liabilities 3% –2%
58812 Volex Rep & Accs 17-43  19/7/05  10:07 am  Page 42 Volex Group plc Annual Report & Accounts 2005 43
Notes to the Accounts
28 Pension arrangements – continued
Under SSAP 24 the Group has a pension provision of £181,000 (2004 and 2003 – £nil) (note 21) recorded. If FRS17 had been
fully implemented a pension provision of £4,095,000 (2004 – £3,628,000; 2003 – £4,493,000) would have been recorded. The
impact of adopting FRS17 on the Group’s profit and loss reserve and net assets is calculated below:
2005 2004 2003
£’000 £’000 £’000
Profit and loss reserve, as reported (5,816) 8,112 19,318
To remove SSAP 24 provision (note 21) 181 ––
Profit and loss reserve, excluding pension provision (5,635) 8,112 19,318
To record FRS17 amount relating to defined benefit pension scheme deficit,
net of related deferred tax of £nil (2004 and 2003 – £nil) (4,095) (3,628) (4,493)
Profit and loss reserve including FRS 17 pension provision (9,730) 4,484 14,825
2005 2004 2003
£’000 £’000 £’000
Net assets, as reported 18,869 32,531 45,133
To remove SSAP 24 provision (note 21) 181 ––
Net assets, excluding pension provision 19,050 32,531 45,133
To record FRS17 amount relating to defined benefit pension scheme deficit,
net of related deferred tax of £nil (2004 and 2003 – £nil) (4,095) (3,628) (4,493)
Net assets including FRS17 pension provision 14,955 28,903 40,640
b. Overseas
The Group operates two overseas defined contribution schemes, one in the USA and one in Ireland.
c. Pension costs
The regular pension costs charged in the year for the above UK and overseas schemes were £1,847,000 (2004 – £2,131,000).
29 Post balance sheet events
On 6 June 2005, the Company signed new bank facilities with its principal bankers, which provide for a three-year revolving
facility. These facilities became effective on 30 June 2005. As a consequence of signing these new bank facilities, the existing
warrants have been amended to include a re-pricing to 73.5p and an extension of the expiry date to 30 June 2008. The costs
of refinancing, including external advisers’ and bank arrangement fees, are estimated at £2.5m, which will be amortised over
the term of the new facilities.  
On 29 June 2005, an Extraordinary General Meeting approved an increase in the authorised share capital of the Company to
£18,830,000. On 30 June 2005, the Company issued 25,850,340 ordinary shares for gross proceeds of £19.0m and the
associated costs of the issue are estimated at £1.5m.
58812 Volex Rep & Accs 17-43  19/7/05  10:07 am  Page 43 Independent Auditors’ Report to the
Members of Volex Group plc
We have audited the financial statements of Volex Group plc for the financial year ended 3 April 2005 which comprise the profit
and loss account, the consolidated statement of total recognised gains and losses, reconciliation of movements in consolidated
shareholders’ funds, the balance sheets, the consolidated cash flow statement and the related notes 1 to 29 and the statement 
of accounting policies. These financial statements have been prepared under the accounting policies set out therein. We have also
audited the information in the part of the Directors’ remuneration report that is described as having been audited.
This report is made solely to the Company’s members, as a body, in accordance with section 235 of the Companies Act 1985.
Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state 
to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the Company’s members as a body, for our audit work, for this report or 
for the opinions we have formed.
Respective responsibilities of Directors and auditors
As described in the statement of Directors’ responsibilities, the Company’s Directors are responsible for the preparation of the
financial statements in accordance with applicable United Kingdom law and accounting standards. They are also responsible 
for the preparation of the other information contained in the annual report including the Directors’ remuneration report. Our
responsibility is to audit the financial statements and the part of the Directors’ remuneration report described as having been
audited in accordance with relevant United Kingdom legal and regulatory requirements and auditing standards.
We report to you our opinion as to whether the financial statements give a true and fair view and whether the financial statements
and the part of the Directors’ remuneration report described as having been audited have been properly prepared in accordance
with the Companies Act 1985. We also report to you if, in our opinion, the Directors’ report is not consistent with the financial
statements, if the Company has not kept proper accounting records, if we have not received all the information and explanations
we require for our audit or if information specified by law regarding Directors’ remuneration and transactions with the Company
and other members of the Group is not disclosed.
We review whether the corporate governance statement reflects the Company’s compliance with the nine provisions of the 
July 2003 FRC Combined Code specified for our review by the Listing Rules of the Financial Services Authority and we report if 
it does not. We are not required to consider whether the Board’s statements on internal control cover all risks and controls, or 
form an opinion on the effectiveness of the Group’s corporate governance procedures or its risk and control procedures.
We read the Directors’ report and the other information contained in the annual report for the above year as described in the
contents section including the unaudited part of the Directors’ remuneration report and consider the implications for our report 
if we become aware of any apparent misstatements or material inconsistencies with the financial statements. 
Basis of audit opinion
We conducted our audit in accordance with United Kingdom auditing standards issued by the Auditing Practices Board. An audit
includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements and the part
of the Directors’ remuneration report described as having been audited. It also includes an assessment of the significant estimates
and judgements made by the Directors in the preparation of the financial statements and of whether the accounting policies are
appropriate to the circumstances of the Company and the Group, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in 
order to provide us with sufficient evidence to give reasonable assurance that the financial statements and the part of the
Directors’ remuneration report described as having been audited are free from material misstatement, whether caused by fraud 
or other irregularity or error. In forming our opinion, we also evaluated the overall adequacy of the presentation of information in the
financial statements and the part of the Directors’ remuneration report described as having been audited.
Opinion
In our opinion: the financial statements give a true and fair view of the state of affairs of the Company and the Group as at 3 April
2005 and of the loss of the Group for the financial year then ended; and the financial statements and the part of the Directors’
remuneration report described as having been audited have been properly prepared in accordance with the Companies Act 1985.
Deloitte & Touche LLP
Chartered Accountants and Registered Auditors
Manchester
30 June 2005
44
58812 Volex R & A 44-64.qxd  19/7/05  10:10 am  Page 44 Corporate Governance
Report
The Board is responsible for the governance of the Company, governance being the systems and procedures by which the
Company is directed and controlled. It is recognised that a presented set of rules does not itself determine good governance 
or stewardship of a Company and the Directors believe that in fulfilling their responsibilities, they govern the Company in the 
best interests of the shareholders, whilst having regard to the interests of other stakeholders of the Company.
During the year the Board has reviewed its procedures with a view to achieving substantial compliance with the provisions of
Section 1 of the Revised Combined Code on Corporate Governance, issued by the Financial Reporting Council in July 2003
(“Revised Combined Code”).
Statement of compliance with the Code of Best Practice
In the opinion of the Directors the Company has complied with the provisions of section 1 of the Revised Combined Code
throughout the financial year (the “year”) and up to the date of reporting except for the following matters. Up until 5 November
2004, Mr. Payzant was a non-executive Director and a member of the Remuneration, Audit and Nominations Committees. 
Mr. Payzant may not have been regarded as independent strictly in terms of the Revised Combined Code (section A.3.1) in view 
of the fact that he had served on the Board as a non-executive Director for more than nine years. With effect from 5 November
2004, Mr. Payzant became President of Volex Inc. and took on an executive role on the Board of Volex Group plc, relinquishing 
his role as a non-executive Director and his membership of the Board Committees referred to above. Mr. Molloy is a member of
the Remuneration Committee although he may not be regarded as independent strictly in the terms of the Revised Combined
Code (section A.3.1), in view of his previous employment as Chief Executive of the Group. All the other members of the
Remuneration Committee during the year were independent and in valuing Mr. Molloy’s contribution consider that he acts
independently and professionally at all times. Mr. Molloy will resign from the Committee upon leaving the Board at close of
business 30 June 2005. On 30 June 2005, Mr. Mullett was appointed as a non-executive Director of the Board. The Company
has also entered into a consultancy agreement with Mr. Mullett’s company, Branison Group LLC, to provide consultancy services
to the Company. Accordingly, Mr. Mullett would not be viewed as independent within the meaning of the Revised Code due to the
fact that he has a material business relationship with the Company.
The Board and its Committees
Following the resignation of Mr. Molloy as Chairman on 30 June 2005, the Board of Directors will consist of four non-executive
Directors, one of whom, David Beever, will take up the role of Chairman on an interim basis pending the recruitment of a permanent
non-executive Chairman, and five executive members. There has been a strong non-executive presence on the Board for many
years and the Board aims to maintain this balance, which is illustrated by the appointment of Mr. Arkle in April 2005 and Mr. Mullett
in June 2005. The Board considers that upon the appointment of a new Chairman the size of the Board will be satisfactory in that
the balance of skills and experience is appropriate for the business of the Company. The roles of the Chairman and Chief Executive
are performed by separate individuals and there is a clear distinction in their responsibilities. The Chairman is primarily responsible
for managing the business of the Board and ensuring all issues or concerns are addressed, whereas the Chief Executive is
responsible for running the business and implementing Board strategy and policy. 
The Board considers each of the non-executive Directors other than Mr. Molloy and Mr. Mullett to be independent within the
meaning of the Revised Combined Code in that they are free from any business or other relationship that could compromise their
judgement. The Chairman was an executive with the Group until July 2002 but the Board considers that he is independent in
character and judgement. Mr. Mullett, having been appointed on 30 June 2005, has a material business relationship with the
Company. 
On 22 October 2004, Mr. Walter was appointed Group Finance Director, following the resignation of his predecessor Mr. Hudson.
On 20 April 2005, Mr. Arkle was appointed a non-executive Director of the Board. On 30 June 2005, Mr. Chae was appointed in
an executive capacity of Chief Operations Officer and Mr. Mullett was appointed as a non-executive Director. 
There have been no other changes to the constitution of the Board either during the year or since the end of the year.
On appointment, Directors are briefed regarding the activities of the Group and the Chairman and Company Secretary ensure that
a new Director has access to appropriate training or advice in relation to the duties of Directors.
Mr. Roberts is the Senior Independent Director and is available to meet with shareholders from time to time.
Volex Group plc Annual Report & Accounts 2005 45
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Corporate Governance
Report
The Board is scheduled to meet at least nine times a year and during the financial year met twelve times. The Board has a formal
list of matters specifically reserved to it including an overview of the business, all major strategy, policy and investment decisions
affecting the Group and development of Group policies in a number of areas including health & safety and social, environmental
and ethical issues. It also meets, by telephone conference call, to discuss ad hoc issues from time to time. All Directors attended
all Board meetings held during the year (either in person or by telephone conference) with the exception that Mr. Hudson was
unable to attend two meetings and Mr. Roberts was unable to attend three meetings which had been called at short notice. During
the year the Chairman has met with the non-executive Directors without the executive Directors being present. The non-executive
Directors have also met without the Chairman or the executive Directors being present. 
The Group Chief Executive and the Group Finance Director are responsible to the Board for the timeliness and quality of all
financial information submitted to the Board. The Company Secretary is responsible for the timeliness and quality of all other
information submitted to the Board and for advising the Board through the Chairman on governance issues. The normal
procedure is to distribute Board papers one week in advance of meetings. The Chairman is primarily responsible for ensuring 
the Board has adequate information provided to it before making decisions. The Directors have access to the advice and services
of the Company Secretary and the Board has adopted a policy under which the Directors are able to take independent advice at
the Company’s expense.
The Board has carried out a formal and thorough evaluation of its own performance. This process involved the Directors completing
a questionnaire on matters relevant to the Board’s performance following which a Board discussion took place concerning a report
comprising a consolidation of the responses and specific actions were agreed in response to the conclusions of that discussion. It
is the intention of the Board to continue to use performance evaluations on an annual basis. Directors are subject to re-election at
the next Annual General Meeting following the initial date of appointment and then at least every three years. In addition, a Director
is required to vacate his office at the conclusion of the Annual General Meeting commencing next after he attains the age of 70.
As disclosed in the Directors’ Report, Mr. Corcoran (being three years since his last re-appointment) and Mr. Walter, Mr. Arkle, Mr.
Chae and Mr. Mullett (each having been appointed since the last Annual General Meeting) are offering themselves for re-election
and election respectively at the 2005 Annual General Meeting. In accordance with the Revised Combined Code the Board
recommends the re-appointment and appointments of the Directors on the basis that each Director brings business experience
and expertise to the Board which enhances the Board’s ability to respond flexibly and speedily to the needs of the Company. 
Mr. Roberts has indicated his intention to resign as a non-executive Director of the Company from the conclusion of the Annual
General Meeting, having served his second period of three years. 
Board Committees
The Board has appointed an Audit Committee, a Remuneration Committee and a Nominations Committee. Each Committee has
adopted written terms of reference dealing clearly with the Committee’s authority and duties and which can be found on the
Company’s website.
The Audit Committee consists wholly of independent non-executive Directors and is chaired by Mr. Beever. The Committee
monitors the integrity of the financial statements of the Company and any formal announcements in relation to the Company’s
financial performance. It reviews the Company’s internal financial controls and also reviews the scope and effectiveness of the
internal audit function, although the Group’s internal control risk management processes are considered by the Board as a whole.
The Committee considers the scope and results of the external audit and its cost effectiveness. Furthermore, the Committee
monitors the independence and objectivity of the auditors and the nature and extent of non-audit services supplied by the 
external auditors by analysing fees for audit and non-audit work; by receiving from and discussing with the auditors their annual
report regarding their independence policies and procedures; and by receiving from the auditors confirmation that they have
complied with APB Ethical Standards. During the year the Audit Committee met three times and all members of the Committee
were present at each meeting.
The Audit Committee recommends the re-appointment of Deloitte & Touche LLP as auditors to the Company.
58812 Volex R & A 44-64.qxd  19/7/05  10:10 am  Page 46 Corporate Governance
Report
The Nominations Committee is chaired by Mr. Roberts and the majority of members were and are independent non-executive
Directors. Board appointments are discussed initially by the Nominations Committee, which makes recommendations to the 
full Board for further consideration and approval. The Nominations Committee takes advice from a variety of sources including
external recruitment consultants where necessary. During the year the Nominations Committee initiated the search for the Group
Finance Director and a non-executive Director. The roles of each were defined having identified core competencies required by 
the candidate to carry out the role. External recruitment consultants were used in the process of the appointments of Mr. Walter
and Mr. Arkle. The Board seeks to maintain an appropriate balance between executive and non-executive Directors. There is 
an induction process for newly appointed Directors involving the Chairman, the Company Secretary and the executive Directors,
together with visits to the Group’s operations. The Board also has a rolling programme of meetings with senior operational
management throughout the Group in order to further enhance the Board’s understanding of key regional developments. During
the year the Nominations Committee met once and all members of the Committee were present at that meeting.
The structure and business of the Remuneration Committee is summarised in the Directors’ Remuneration Report on pages 51 to 59.
In addition, the Board has established a number of other committees, such as the Finance Committee and the Sealing Committee
and also establishes ad hoc committees from time to time to deal with specific issues. All committees have clear terms of
reference specified by the Board and minutes are recorded by the Company Secretary. 
Directors’ and Officers’ insurance against legal action is in place providing cover for Directors and Officers of the Company and its
subsidiaries.
Internal controls
The Board acknowledges its responsibility for the Group’s system of internal control and for reviewing its effectiveness. It must 
be understood, however, that such a system is designed to manage rather than eliminate the risk of failure to achieve business
objectives and can only provide reasonable and not absolute assurance against material misstatement or loss.
In response to the publication of the Internal Control Guidance, the Board has developed an ongoing process for identifying,
evaluating and managing the significant operational, management and financial risks faced by the Group. This process was in
operation throughout the financial year and up until the approval of the annual report and accounts. The process is built around
the established management systems of the Group and is reviewed on a regular basis. In the third quarter of each financial year
the Group Executive Committee (comprising the executive Directors and senior operational and corporate managers) carries out
an exercise to identify the significant risks currently faced by the business. The conclusions are subsequently reviewed and
approved by the Board. The Group’s business plan for the following financial years is then developed and addresses each of 
these risks by identifying in each case the existing control processes in place to manage those risks and by setting improvement
plans as part of the Group’s continuous improvement programme.
In addition to this process, the policy regarding insurance of risk is a matter reserved to the Board; the Audit Committee monitors
financial control and risk in conjunction with both the internal audit function and external auditors; and the Group finance
department monitors and develops internal financial control systems throughout the Group.
The Board receives with the monthly management accounts a monthly management report covering each of the Group’s
operations and the consolidated results. The Board also receives following the end of each quarter, commentary on the identified
risks and the internal control processes dealing with those risks. This is considered by the Board each quarter. The Board
considers this process satisfies the requirements set out in the Internal Control: Guidance for Directors on the Combined Code.
Whistleblowing policy
The Company has adopted a whistleblowing policy, which has been made available to employees on the Company’s website 
and on site notice boards. The aim of the policy is to encourage all employees, regardless of seniority, to bring matters which
cause them concern to the attention of the Board.
Volex Group plc Annual Report & Accounts 2005 47
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Corporate Governance
Report
Relations with shareholders
The Directors seek to build on a mutual understanding of objectives between the Company and its institutional shareholders 
by making annual and half-year presentations to institutional investors and stockbroking analysts, meeting existing and potential
institutional shareholders and organising occasional factory tours. Individual shareholders have the opportunity to discuss issues
with the Directors on an informal basis at the time of the Annual General Meeting and are welcome to communicate with any
Director at any time during the year. It is the Company’s policy that all Directors attend the Annual General Meeting.
Statement of Directors’ responsibilities
United Kingdom Company law requires the Directors to prepare accounts for each financial year which give a true and fair view 
of the state of affairs of the Company and Group and of the profit or loss of the Group for that period. 
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the
financial position of the Company and Group and enable them to ensure that the accounts comply with the Companies Act 1985.
They are also responsible for safeguarding the assets of the Company and Group and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
After making enquiries, the Directors have a reasonable expectation that the Company and the Group have adequate resources 
to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in
preparing the accounts.
In preparing the accounts the Directors are required to select suitable accounting policies and then apply them consistently, make
judgements and estimates that are reasonable and prudent and state whether applicable accounting standards have been
followed.
58812 Volex R & A 44-64.qxd  19/7/05  10:10 am  Page 48 Social, Ethical and
Environmental Report
The Board has adopted a Statement of Social, Ethical and Environmental Policy (the “Policy Statement”) which applies to the 
entire Volex Group of companies. It is circulated through the unit Managing Directors to all employees via the normal regional
communication channels and is available on our web site www.volex.com and in hard copy from the Company Secretary.
We are committed to:
• Respecting the rule of law, conducting our business with integrity and showing respect for the rights of the individuals. 
• Creating mutual advantage in all our relationships so that people both inside and outside the Group trust us and want to work 
with us.
• Demonstrating respect for the environment and working continuously to improve business processes and practices to reduce 
the impact of our operations.
• Managing our financial performance to maximise long-term value for our shareholders.
This Policy Statement is the foundation on which we build and conduct our business and we expect all Volex employees to
support all elements of the policy.
The Policy Statement is based on the commitments set out above and outlines specific minimum standards in respect of five
particular areas. These deal with corporate conduct regarding our employees; health & safety; the environment; relationships 
with various stakeholder groups; and the personal conduct of everyone employed by the Group. The Policy Statement concludes
with the outline of a compliance process, which reflects our normal management structures.
Corporate conduct and employment practices
In all aspects of our business we seek to operate in compliance with the law, rules and regulations of the country of operation.
This applies to all areas of our Policy Statement. However, in a number of areas we look to establish specific minimum standards,
which will override any lower legal requirements. For example, in our employment practices we will not use indentured or forced
labour, we will not employ anyone below 16 years old and we do not discriminate on the basis of sex, colour, race or belief. 
Health & safety
In matters of health & safety we will provide a safe and clean working environment with systems and procedures of a standard 
at least equivalent to those of comparable manufacturing companies of good reputation in the geographical area of operation. 
The Board receives reports on health & safety performance throughout the Group. Our regional operations have adopted formal
health & safety policy statements and are implementing specific health & safety programmes to improve identified risks. We collect
and review various performance data ranging from monthly key performance indicators to annual insurance claims records and
use these to identify areas for further improvement.
Environment
We are committed to meeting the needs of our customers in an environmentally sound and sustainable manner through
continuous improvement in all activities, using the best available technology not entailing excessive cost. 
At Volex we work towards the requirements stated in the ISO 14001 Environmental Management System. As part of this system
we review our environmental objectives and targets on a regular basis and ensure continuous improvement. Our plan is to achieve
the international environmental standard ISO 14001 in all our manufacturing locations over a number of years. At the date of this
report, certification has been achieved at each of our three facilities in China, at our two facilities in Indonesia, at facilities in India,
Thailand, Vietnam, Brazil, Ireland, Croatia, Poland and at two facilities in the UK. These sites are now maintaining and improving
their environmental management systems to retain their ISO 14001 certification status. A number of other locations are developing
their systems with a view to applying for certification in the future.
Volex Group plc Annual Report & Accounts 2005 49
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Social, Ethical and 
Environmental Report
In the electronics industry the production of environmentally friendly products has become increasingly important with the
introduction of the Waste Electrical and Electronic Equipment (WEEE) directive and the Restriction on Hazardous Substances
(RoHS) directive issued by the European Union. These directives are aimed at reducing the hazardous materials content in
electronic products as well as increasing the recycling of these products. RoHS will be implemented in the UK on 1 July 2006. 
To support our customers’ compliance with RoHS, Volex has initiated a project working with our customers and our extensive
supply base and aims to be fully compliant with RoHS by the end of the calendar year 2005. In addition, we aim to design our
products in such a way that reduces their environmental impacts in production, use and disposal and will look to comply with the
WEEE directive either prior to or upon implementation. 
Relationships with stakeholder groups
The standards we set ourselves in our relationships with our various groups of stakeholders are typified by the values of 
honesty, respect, integrity, diligence and professionalism. These values are the common thread linking our communications 
with shareholders, our business relationships with customers, suppliers, sub-contractors and agents, our interaction with local
communities around the world and all our dealings with employees.
Standards of personal conduct
The Group relies on its employees as individuals to practise the highest moral and ethical standards in all their business activities.
While we fully respect the privacy of employees’ personal lives, we expect all employees to conduct their personal affairs so that
the performance of their obligations to the Group is not prejudiced and the reputation of the Group is maintained. Strict adherence
to the Policy Statement is a condition of employment in the Group.
58812 Volex R & A 44-64.qxd  19/7/05  10:11 am  Page 50 Directors’ Remuneration
Report
Introduction
This report has been prepared in accordance with Schedule 7A to the Companies Act 1985 introduced by the Directors’
Remuneration Report Regulations 2002. The report also meets the relevant requirements of the Listing Rules of the Financial
Services Authority and describes how the Board has applied the Principles of Good Governance relating to Directors’
remuneration as required by the Act. A resolution to approve the report will be proposed at the Annual General Meeting of the
Company at which the financial statements will be approved.
The Act requires the auditors to report to the Company’s members on the “auditable part” of the Directors’ Remuneration Report
and to state whether in their opinion that part of the report has been properly prepared in accordance with the Companies Act
1985 (as amended by Schedule 7A). The report has therefore been divided into separate sections for audited and unaudited
information.
Unaudited information
Remuneration Committee
The Remuneration Committee is a well-established part of the Company’s governance structures. The members of the Committee
during the financial year were Mr. Roberts, Mr. Beever and Mr. Molloy. Mr. Payzant was also a member of the Committee up until 
5 November 2004 when he relinquished his non-executive role and took up the executive post of President of Volex Inc. Since 
the year end an independent non-executive Director, Mr. Arkle, has been appointed an additional member of the Committee on 
20 April 2005. The Committee has been and is constituted in accordance with the recommendations of the Combined Code
except that Mr. Molloy, who was appointed a member of the Committee upon his appointment as Chairman of the Company in
July 2002, may not be regarded as an independent non-executive Director in view of his previous employment as Chief Executive. 
The other members of the Remuneration Committee, who are all independent, value his contribution and consider that Mr. Molloy
is independent in character and judgement. The Committee is chaired by Mr. Roberts. The Company Secretary acts as Secretary
to the Committee. During the year the Remuneration Committee met seven times and all members of the Committee were present
at each meeting.
None of the Committee members have any personal financial interest (other than as shareholders and in the case of Mr. Molloy,
share options granted to him during his period as an executive of the Company), conflicts of interests arising from cross-
directorships or day-to-day involvement in running the business and no Director plays a part in any discussion about his own
remuneration.
The Remuneration Committee agrees with the Board the broad policy for the remuneration of the Directors and those other senior
executives of the Group reporting directly to the Group Chief Executive (the “Senior Executive Team”). In the context of that broad
policy the Remuneration Committee then determines, and reviews at least annually, the specific remuneration packages of each of
the Senior Executive Team. In addition, the Remuneration Committee approves the terms of all service agreements for the Senior
Executive Team and determines the grant of all discretionary share options within the Group.
In determining the Directors’ remuneration for the year, the Committee consulted with New Bridge Street Consultants, who
submitted a benchmarking report in the final quarter of the financial year. Mr. Corcoran (Chief Executive) and Mr. Ashcroft 
(Director of Corporate Affairs and Company Secretary) were also consulted by the Committee about its proposals.
The balance of this Remuneration Report deals solely with the remuneration and terms of service of the Directors.
Remuneration policy
The policy of the Committee is to maintain remuneration packages sufficient to attract, retain and motivate executives of the
calibre and experience necessary to provide a successful future for the Group. 
The objective is to provide a balanced remuneration package which includes an appropriate level of basic salary and benefits in
kind (including pension provision where appropriate), together with both short term and long term incentives. Short term incentives
are linked to challenging targets which support and reinforce the long term objectives of the Company. The long term incentives,
currently being options granted under the Company’s share option schemes, focus the executives on the sustained development
of the Company and align their interests with those of the shareholders. The remuneration of the non-executive Directors is
determined by the Board within limits set out in the Articles of Association.
Volex Group plc Annual Report & Accounts 2005 51
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There are four main elements of the remuneration package for executive Directors:
• Basic annual salary (including Directors’ fees) and benefits;
• Annual bonus payments;
• Long term share related incentives; and
• Pension arrangements.
The Remuneration Committee have considered the future provision of long term share related incentives and have determined 
that a long term incentive plan would in future be more appropriate than the current share option scheme. A resolution proposing
the adoption of a long term incentive plan will be put to the Annual General Meeting and is detailed in the accompanying circular. 
The Company’s policy is that a substantial proportion of the remuneration of the executive Directors should be performance
related in the form of annual bonus payments and periodic grants of share options.
Basic salary
In deciding and reviewing appropriate remuneration packages, the Remuneration Committee considers:
- the positioning of the Group relative to other companies;
- the positioning of individual Directors relative to positions in other companies;
- remuneration expectations in the geographical area of operation;
- surveys published by leading remuneration consultants supplemented by occasional specific advice and benchmarking 
exercises by external consultants and the knowledge and experience of the members of the Committee;
- remuneration relativities within the Group;
- the competition, risks, challenges, complexity, diversity and international spread of the Group’s business; and
- the particular expertise and understanding required of the Director concerned.
Executive Directors’ basic salaries are determined by the Committee annually, with adjustments being made with effect from 
1 April, and when an individual changes position or responsibility. 
In addition to basic salary and pension benefits, the executive Directors receive certain benefits-in-kind, principally 
the fully expensed use of a car (or alternative cash allowance and fuel costs), private medical insurance, permanent health
insurance and life assurance.
Annual bonus payments
A discretionary annual cash bonus scheme represents the short-term incentive element of the overall remuneration package for
executive Directors. The Committee establishes the objectives that must be met in each financial year if a cash bonus is to be
paid, reflecting the strategic objectives set by the Board for the year in question. The bonus plan for the financial year to 3 April
2005 rewarded performance relative to the Group’s profit before tax, cash generation and specific personal objectives. Details of
the bonuses payable in respect of performance during the financial year ended 3 April 2005 are set out in the table on page 56.
Maximum bonus levels are set annually, currently at 75% of basic salary for the Group Chief Executive and the Chief Operating
Officer, 60% of basic salary for the Group Finance Director and the Group Director of Corporate Affairs and 50% for the President
of Volex Inc.
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Share options
The executive Directors hold options to purchase ordinary shares granted pursuant to the Volex 1994 Share Option Scheme 
and the Volex 2001 Share Option Plan (the “Option Schemes”). These Option Schemes are the Company’s long term incentive
plans for Directors and other senior executives. They are discretionary share option schemes and are intended to align executives’
financial interests directly with those of the shareholders. Following the restrictions on Inland Revenue approved options introduced
by the Finance Act 1996 the majority of options under the 1994 Scheme and 2001 Plan have been issued under the unapproved
sections.
The exercise of options granted under the Option Schemes since June 1995 is subject to the satisfaction of a financial
performance condition set by the Remuneration Committee at the time of each grant. The performance condition attached to
options granted in June 2004 was that earnings per share (“EPS”) increase over the performance period to no less than 22p per
share increased by the percentage movement in the Retail Prices Index (“RPI”) plus 6% per annum from April 2005 to the end of
the performance period. The performance condition attached to options granted in July 2003 was that the EPS increase over the
performance period to no less than 13p per share increased by the percentage movement in the RPI plus 3% per annum from
April 2004 to the end of the performance period. The performance condition attached to options granted in July 2002 was that
EPS increase over the performance period to no less than 30p per share increased by the percentage movement in the RPI plus
3% per annum from April 2003 to the end of the performance period. The performance condition attached to grants of options
from 1998 to 2001 was that EPS increase from the date of grant by no less than the movement in the RPI plus 3% per annum
over a minimum of three years. Grants made prior to 1998 required 2% per annum real increase EPS. At the time of the grant of
options the Remuneration Committee considered that the performance condition selected was the accepted norm for such
schemes generally and appropriate given the Company’s size and character. In the case of the 2004, 2003 and 2002 grants of
options the Committee adapted its previous practice in view of the negative earnings per share for the financial years ending 31
March 2002, 2003 and 2004. EPS here means the headline earnings per share published in each Annual Report and Accounts,
subject to the discretion of the Remuneration Committee to make such adjustments to “normalise” the figures as they see fit. This
approach to the calculation of EPS has been chosen since the base figure is independently audited, consistent and transparent,
whilst reserving to the Committee the appropriate level of discretion. Options granted up to and including 2001 allow for annual re-
testing of the performance condition from the fixed base of the date of grant. Options granted in 2003 and 2002 allow for such
testing only in the third, fourth and fifth years after grant. Options granted in 2004 had a single testing period of three years and
did not allow for retesting. Once the performance condition attaching to any of the options has been satisfied, the option may be
exercised at any time during the rest of its ten year life without further test. The exercise price of each of the options granted under
the Option Schemes is equal to the market value of the Company’s shares at the time when the options are granted.
In addition, the executive Directors were eligible to apply for options pursuant to the Volex 1994 Share Savings Scheme (the
“Employee Share Savings Scheme”) which was open to all UK employees upon general invitation by the Company. This is an all
employee plan to which performance conditions do not apply. The Scheme is now closed and no further invitations are possible
under the Scheme.
Mr. Ashcroft and Mr. Molloy participate in the Volex 1994 Share Option Scheme. Mr. Ashcroft and Mr. Corcoran participate in the
Volex 2001 Share Option Plan. Mr. Ashcroft also participates in the Volex 1994 Share Savings Scheme. Mr. Hudson also
participated in the Volex 1994 Share Option Scheme and the Volex 1994 Share Savings Scheme; however, upon his resignation all
such options lapsed.
Subject to the aggregate and individual limits built into the rules of the Option Schemes, the Committee’s policy is to grant options
to executive Directors on an annual basis, thereby building option holdings progressively over a period of time. Executive Directors
are not normally granted in any one year options over shares with a market value greater than 100% of basic salary. However, in
exceptional circumstances grants of up to 3 times basic salary may be made. In addition, executive Directors are encouraged to
retain shares following the exercise of options, after allowing for sales to fund the exercise and related tax liabilities.
The Company does not currently operate any long term incentive schemes for Directors, other than the share option schemes
described above. No significant amendments are proposed to be made to the terms and conditions of any entitlement of a
Director to share options. However, the Remuneration Committee has made proposals to establish a new long term incentive plan
(“LTIP”) and a resolution relating to this is to be put to the 2005 Annual General Meeting. 
Volex Group plc Annual Report & Accounts 2005 53
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Directors’ Remuneration
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Pension arrangements
The provision of pension benefits for executive Directors is considered in the context of the overall remuneration package and in
the light of the executives’ particular circumstances. During his period as Group Chief Executive Mr. Molloy accrued defined
contribution benefits via an Irish pension arrangement. Similar benefits are accruing for Mr. Corcoran, with a Company contribution
of 20% of basic salary. Since 1 April 2003 Mr. Ashcroft and Mr. Hudson have each accrued defined contribution pension benefits
via UK approved pension arrangements with a Company contribution of 20% of basic salary. In addition they each have deferred
pension benefits within two contributory defined benefit schemes in respect of earlier periods of service. These are the Volex No.1
Pension Scheme (30ths of final salary accrual rate) and the Volex Executive Pension Scheme (60ths of final salary accrual rate)
both of which closed to future accrual of pension benefits on 31 March 2003. Mr. Corcoran’s pension benefits are affected by the
pensions cap applied by the Irish Revenue Authorities. None of the other Directors pension benefits are affected by the Inland
Revenue pensions cap. Mr. Walter received a pension allowance equivalent to 20% of basic salary in the period from his
appointment until the end of the fiscal year. In future years he will receive contributions to a UK approved pension arrangement
equivalent to 20% of his basic salary. Mr. Payzant is a member of the Volex Inc. 401K Employee Retirement Plan and the Group
contributes up to 1.5% of Mr. Payzant’s basic salary. Only basic salary is pensionable in all cases.
Performance graph
The following graph shows the Company’s performance, measured by total shareholder return, compared with the performance 
of the FTSE All Share Index and the FTSE Electronic and Electrical Equipment sector, both also measured by total shareholder
return. These indices have been selected for this comparison because they represent the general and specific markets/sectors 
in which the Company is listed on the London Stock Exchange.
5 Year Volex Total Shareholder Return Index against the FTSE All Share Index
and FTSE Electronic and Electrical Equipment Sector
58812 Volex R & A 44-64.qxd  19/7/05  10:11 am  Page 54 Directors’ Remuneration
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Directors’ contracts
It is the Company’s policy that the service contract for each executive Director continues until the Director’s contractual retirement
date (or such date as agreed between the Director and the Company) unless terminated earlier by either party, subject to the
contractual notice period of no more than one year. However, it may be necessary occasionally to offer longer notice periods or
initial terms to new Directors. Mr. Payzant’s executive appointment is subject to six months’ notice from either party. Mr. Chae’s
appointment is for an initial period of twelve months and is then subject to a six months’ notice period. Mr. Corcoran, Mr. Ashcroft
and Mr. Walter have service contracts which are subject to twelve months’ notice from either party.
The Company’s policy for non-executive Directors is to have contracts for services with an initial period of appointment of three
years, renewable by agreement for successive periods.
Under the Articles of Association of the Company at each annual general meeting any Director then in office who has been
appointed by the Board since the previous annual general meeting and any Director then in office who at the date of the notice
convening the annual general meeting had held office for more than thirty months since he was appointed or last 
re-appointed by the Company in general meeting, is required to retire from office but is eligible for re-appointment.
Pursuant to these provisions, Mr. Chae and Mr. Walter (executive Directors) and Mr. Arkle and Mr. Mullett (non-executive Directors) are
proposed for election at the 2005 Annual General Meeting and Mr. Corcoran (executive Director) is proposed for re-election at that meeting.
The details of the Directors’ contracts are summarised in the table below:
Name of Director Date of contract Unexpired Notice
or letter of term* period
appointment
Executive Directors
Mr. M. Ashcroft 06.06.01 N/A 12 months
Mr. H.R. Chae 30.06.05 12 months 6 months
Mr. J. Corcoran 10.07.02 N/A 12 months
Mr. D.B. Hudson 19.03.03 N/A 12 months 
Mr. D.C. Payzant 01.06.05 N/A 6 months
Mr. D.E.P. Walter 22.10.04 N/A 12 months
Non-executive Directors
Mr. R.M. Arkle 20.04.05 2 years 9 months 3 months
Mr. D.M.M. Beever 19.06.02 1 month none
Mr. D.J. Molloy 16.07.02 1 year 1 month none
Mr. C.R. Mullett 30.06.05 3 years 3 months
Mr. J.E. Roberts 21.04.05 2 months none
* Measured from the date of this report. Term is subject to re-election by the shareholders from time to time in accordance with 
the Articles of Association of the Company.
** Contract terminated upon Mr. Hudson’s resignation on 22 October 2004.
*** Six months’ notice applies after the initial period of appointment of twelve months.
The Directors’ contracts do not include any specific provisions relating to compensation in the event of early termination. In the
event of early termination of an executive Director’s service agreement the Company would serve notice on the executive Director
and/or make payment in lieu of notice, with due allowance in appropriate circumstances for the Director’s duty to mitigate his loss.
During the year, the Company made a payment to Mr. Hudson in lieu of notice upon termination of his service agreement in the
sum of £98,269.
Executive Directors’ contracts of service (and/or memoranda of the main terms thereof) which include details of remuneration, together
with copies of the non-executive Directors’ letters of appointment, will be available for inspection at the Annual General Meeting.
*** 
**
Volex Group plc Annual Report & Accounts 2005 55
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Outside appointments
None of the executive Directors hold outside Director appointments. 
Non-executive Directors
All non-executive Directors have specific terms of engagement and their remuneration is determined by the Board within the 
limits set by the Articles of Association and based on independent surveys of fees paid to non-executive Directors of similar
companies. The fee paid to each non-executive Director in the year is set out in the table below entitled “Directors’ emoluments”.
Non-executive Directors cannot participate in any of the Company’s share option schemes and are not eligible to join the
Company’s pension scheme. However, options granted to Mr. Molloy during his period of executive employment remain in place
and may be exercised subject to the terms and conditions of grant. Mr. Molloy also has the benefit of defined contribution pension
entitlements accrued during the period of his executive employment.
Audited information
Aggregate Directors’ remuneration
The total amounts for Directors’ remuneration were as follows: 2005 2004
£ £
Emoluments 961,934 630,625
Money purchase pension contributions 83,394 81,790
1,045,328 712,415
Directors’ emoluments
Name of Director Fees/Basic Benefits Annual Compensation 2005 2004
salary in kind bonuses for loss of office Total Total
££ £ £ £
Executive
Mr. M. Ashcroft 118,000 15,561 11,800 - 145,361 119,777
Mr. J. Corcoran 230,000 43,156 57,500 - 330,656 213,332
Mr. D.E.P. Walter 
(1)
55,162 18,156 11,250 - 84,568 -
(appointed 22.10.04)
Mr. D.B. Hudson 61,250 10,259 - 98,269 169,778 122,849
(resigned 22.10.04)
Mr. D.C. Payzant 
(2)
88,193 1,212 - - 89,405 -
Non-Executive
Mr. D.M.M. Beever 26,000 - - - 26,000 26,000
Mr. D.J. Molloy 75,000 - - - 75,000 96,667
Mr. D.C. Payzant 
(2)
15,166 - - 15,166 26,000
Mr. J.E. Roberts 26,000 - - - 26,000 26,000
Aggregate emoluments 694,771 88,344 80,550 98,269 961,934 630,625
(1)
Included within benefits for Mr. D.E.P. Walter is an amount of £11,032, which he has received in lieu of employer pension 
contributions. With effect from 6 April 2005, these monies will no longer be paid directly to Mr. Walter but will be contributed 
to his pension arrangements.
(2)
Mr. D.C. Payzant held non-executive employment until 5 November 2004 at which point he was appointed President of 
Volex Inc. on a full time executive basis.
The Directors do not receive general expense allowances but are reimbursed specific reasonable expenses incurred in connection
with the Company’s business.
58812 Volex R & A 44-64.qxd  19/7/05  10:11 am  Page 56 Directors’ Remuneration
Report
Directors’ share options
Aggregate emoluments disclosed above do not include any amounts for the value of options to acquire ordinary shares in the
Company granted to or held by the Directors. Details of options for Directors who served during the year and granted since the
date of their appointment, are set out below:
Name of Director Option 4 April Granted Lapsed 3 April Exercise Date from Expiry
Scheme 2004 2005 price (£) which date
(or date of exercisable
resignation)
Mr. M. Ashcroft Scheme 1 20,000 - - 20,000 7.88 18.06.04 18.06.11
Scheme 2 10,000 - - 10,000 1.38 23.07.05 23.07.12
Scheme 2 37,500 - - 37,500 0.87 20.06.06 20.06.13
Scheme 3 962 - - 962 6.31 01.09.06 28.02.07
Scheme 2 - 40,000 - 40,000 1.475 21.06.07 21.06.14
68,462 40,000 - 108,462
Mr. J. Corcoran Scheme 2 20,000 - - 20,000 1.38 23.07.05 23.07.12
Scheme 2 100,000 - - 100,000 0.87 20.06.06 20.06.13
Scheme 2 - 50,000 - 50,000 1.475 21.06.07 21.06.14
120,000 50,000 - 170,000
Mr. D.B. Hudson Scheme 2 37,500 - (37,500) - 0.87 N/A N/A
Mr. D.J. Molloy Scheme 1 50,000 - - 50,000 4.55 23.07.99 23.07.06
Scheme 1 12,000 - - 12,000 4.10 14.07.00 14.07.07
Scheme 1 8,000 - - 8,000 4.855 18.12.00 18.12.07
Scheme 1 28,500 - - 28,500 6.10 21.07.01 21.07.08
Scheme 1 30,000 - - 30,000 6.225 08.07.02 08.07.09
Scheme 1 30,225 - - 30,225 14.75 03.07.03 03.07.10
Scheme 1 30,000 - - 30,000 7.88 18.06.04 18.06.11
188,725 - - 188,725
Option Schemes:
Scheme 1 = Volex 1994 Share Option Scheme
Scheme 2 = Volex 2001 Share Option Plan 
Scheme 3 = Volex 1994 Share Savings Scheme
There were no exercises of options by Directors during the year and therefore no gains were made by the Directors. There have
been no variations to the terms and conditions or performance criteria for share options during the financial year.
Details of performance conditions and periods of testing and exercise are set out on page 53.
No options were held during the year by Mr. Beever, Mr. Payzant, Mr. Roberts or Mr. Walter.
The market price of the ordinary shares at 3 April 2005 was 76.5p (4 April 2004: 150.5p) and the range during the year was 
53.0p to 181.0p.
Volex Group plc Annual Report & Accounts 2005 57
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Directors’ pension entitlements
As at the end of the year Mr. Ashcroft and Mr. Hudson had deferred pension entitlements under the Volex No.1 Pension Scheme
and under the Volex Executive Pension Scheme, which are both defined benefit schemes, and had accrued entitlements under the
schemes as follows:
Accrued pension Increase in accrued Accrued pension
4 April pension in the year 3 April
2004 excluding inflation* 2005
££ £
Mr. M. Ashcroft 30,092 36 31,064
Mr. D.B. Hudson 20,598 19 21,258
* These amounts reflect the difference in inflation factors used for the purposes of the Guaranteed Minimum Pension element of 
pension entitlement arising from the Executive Pension Scheme compared to the Limited Price Indexation rate otherwise used 
for the purposes of this note.
The pension entitlements shown above are those which would be paid annually on retirement based on service and final
pensionable salary at the end of the year.
The following table sets out the transfer value of the Directors’ accrued benefits under the schemes calculated in a manner
consistent with “Retirement Benefit Schemes – Transfer Values (GN 11)” published by the Institute of Actuaries and the Faculty 
of Actuaries.
Transfer value Contributions Increase in transfer Transfer value
4 April made by the value in the year 3 April
2004 Director net of contributions 2005
££ £ £
Mr. M. Ashcroft 217,697 - 19,774 237,471
Mr. D.B. Hudson 115,507 - 13,761 129,268
The transfer values disclosed above do not represent a sum paid or payable to the individual Director. They represent a potential
liability of the pension scheme and they cannot meaningfully be added to annual remuneration.
The Volex No.1 Pension Scheme and the Volex Executive Pension Scheme were both closed to future accrual of benefits on 
31 March 2003. They have been replaced by defined contribution pension arrangements with the individuals concerned, with a
Company contribution of 20% of basic salary in the case of the two affected executive Directors. Members of the schemes have the
option to pay Additional Voluntary Contributions; neither the contributions nor the resulting benefits are included in the above tables.
As at the year end Mr. Corcoran, Mr. Ashcroft, Mr. Hudson and Mr. Payzant are members of money purchase schemes and the
contributions paid or payable during the year by the Group in respect of those individuals were as follows:
2005 2004 
£ £
Mr. M. Ashcroft 23,600 20,790
Mr. J. Corcoran 46,000 40,000
Mr. D.B. Hudson 12,250 21,000
Mr. D.C. Payzant 1,544 -
83,394 81,790
As noted on page 56, Mr. Walter has received £11,032 in lieu of employer pension contributions during the year equivalent to 20%
of basic salary. With effect from 6 April 2005, the Company will be contributing to Mr. Walter’s pension arrangement.
58812 Volex R & A 44-64.qxd  19/7/05  10:11 am  Page 58 Directors’ Remuneration
Report
Directors’ interests
The interests in the share capital of the Company of those Directors who were in office at 3 April 2005, together with their
shareholding at 4 April 2004, or date of appointment if later, are detailed below. The table details separately beneficial interests 
and share options issued to the Directors (both prior to and upon their appointment), under the Company’s discretionary and all
employee share option schemes. All interests relate solely to 25p ordinary shares. 
Shares Shares Options Options
2005 2004 2005 2004
Mr. D.J. Molloy 45,793 45,793 188,725 188,725
Mr. J. Corcoran 10,000 10,000 202,000 152,000
Mr. M. Ashcroft 10,872 10,872 131,000 92,461
Mr. D.M.M. Beever 20,000 20,000 - -
Mr. D.C. Payzant 149,075 149,075 - -
Mr. J.E. Roberts 10,000 10,000 - -
Mr. D.E.P. Walter - - - -
None of the Directors held non-beneficial interests.
Since the year end the Directors have increased the number of shares in which they are interested through participation in the firm
placing and placing and open offer of shares proposed in the Prospectus issued by the Company on 6 June 2005. The interests
of the current Directors are as follows:
Shares
Mr. D.J. Molloy 57,843
Mr. J. Corcoran 19,432
Mr. R.M. Arkle 34,000
Mr. M. Ashcroft 13,732
Mr. D.M.M. Beever 25,263
Mr. H.R. Chae 1,090,000
Mr. C.R. Mullett 68,000
Mr. D.C. Payzant 521,635
Mr. J.E. Roberts 12,631
Mr. D.E.P. Walter 6,800
No Director had at any time during the year an interest in the share capital of any of the Company’s subsidiary undertakings.
Save as disclosed none of the Directors had a material interest in any contract of significance with the Company or with any other
related party.
Approval
This report was approved by the Board of Directors on 30 June 2005 and signed on its behalf by:
Mark Ashcroft
Director & Company Secretary
30 June 2005
Volex Group plc Annual Report & Accounts 2005 59
58812 Volex R & A 44-64.qxd  19/7/05  10:11 am  Page 59 60
Directors’ Report
The Directors present their annual report on the affairs of the Group together with the accounts and independent auditors’ report
for the financial year ended 3 April 2005.
Principal activities and summary business review
(a) Activities
Volex Group is a leading independent producer of electronic and fibre optic cable assemblies and electrical power cords. The
Group currently operates from over forty facilities located strategically in Asia, Europe and North and South America, providing
global support to leading producers of computers, telecommunication systems and networking devices. In addition, the Group
assembles wiring assemblies and harnesses for consumer electronics and appliances, medical and industrial applications and for
transportation, defence and aerospace industries.
The Company operates through overseas subsidiary companies in Asia, Europe, North and South America and through a divisional
structure for its UK based wiring harness businesses. The subsidiary undertakings principally affecting the profits or net assets of
the Group in the year are listed in note 15 to the accounts. Post balance sheet events are detailed in note 29.
(b) Summary review of operations
Summary results from operations were as follows: 2005 2004 
£’000 £’000 
Operating profit pre goodwill amortisation, 
impairment and exceptional operating items 1,528 2,486
Exceptional operating items (8,532) (6,680)    
Amortisation of goodwill (302) (328)
Profit on sale of properties 1,918 -
Finance charges:
- interest (net) (3,184) (3,140)
- refinancing costs and amortisation of debt issue costs (932) (683)
Loss on ordinary activities before tax (9,504) (8,345)
The reviews on pages 6 to 15 provide greater details on the Group’s operations for the financial year to 3 April 2005.
(c) Results
Group results are as follows: 2005 2004
£’000 £’000
Group loss for the financial year before tax (9,504) (8,345)
Taxation (4,424) (2,861)
Loss for the financial year (13,928) (11,206)
(d) Research and development 
The Group has demonstrated competence in product design, especially where the functionality and design of the assembly is not
dependent on customer specified componentry. The Group continues to place great emphasis on product and process research
and development to satisfy its customer demands and to ensure world class manufacturing standards are achieved. Each
operating unit allocates considerable time and financial resources for these purposes. Further details are set out in note 8 to the
accounts on page 26. 
(e) Continuous improvement
The Group continues to use a range of management tools, such as the model of the European Foundation For Quality Management,
as frameworks to achieve a culture of continuous improvement throughout its operations. Continuous improvement processes are
in place throughout the Group and are reported upon to senior management and the Board on a quarterly basis.
58812 Volex R & A 44-64.qxd  19/7/05  10:11 am  Page 60 Directors’ Report
Directors and their interests
(a) Directors
The Directors who served during the year were as follows:
Mr. D.J. Molloy
Mr. J. Corcoran
Mr. M. Ashcroft
Mr. D.M.M. Beever
Mr. D.B. Hudson (resigned 22.10.2004)
Mr. D.C. Payzant*
Mr. J.E. Roberts
Mr. D.E.P. Walter (appointed 22.10.2004)
*On 5 November 2004, Mr. Payzant became President of Volex Inc. and consequently took an executive role on the Board,
thereby relinquishing his role as a non-executive Director. 
Since the end of year, Mr. Arkle (20 April 2005) and Mr. Mullett (30 June 2005) have been appointed as additional non-executive
Directors and Mr. Chae (30 June 2005) has been appointed to the Board as Chief Operating Officer.
Mr. Molloy has indicated his intention to resign from the Board and its Committees following which Mr. Beever will take up the role
of Chairman on an interim basis pending the recruitment of a permanent non-executive Chairman.
(b) Election and re-election of Directors
Mr. Arkle, Mr. Chae, Mr. Mullett and Mr. Walter, each having been appointed to the Board since the 2004 Annual General Meeting,
will each retire at the 2005 Annual General Meeting in accordance with the provisions of the Articles of Association of the Company.
Being eligible, they each offer themselves for election and the Board recommends each of their appointments. Mr. Arkle and 
Mr. Mullett do not have service agreements as they are non-executive Directors. However, the Company has entered into a
consultancy agreement with Mr. Mullett’s company, Branison Group LLC. Mr. Walter has a service agreement with the Company,
which is terminable by twelve months’ notice. Mr. Chae has a service agreement with the Company for an initial period of twelve
months which will continue thereafter until terminated by either party giving six months’ notice. 
Mr. Corcoran, having been last elected by the Company in general meeting more than 30 months prior to the date of notice of 
the 2005 Annual General Meeting, retires in accordance with the Articles of Association of the Company at that meeting. Being
eligible, he offers himself for re-election and the Board recommends his re-appointment. Mr. Corcoran has a service agreement
with the Company which is terminable by twelve months’ notice. 
The biographical details of each of the Directors are available on page 16.
The Board makes its recommendation to appoint and re-appoint the Directors seeking election or re-election on the basis that
having evaluated each Director either upon appointment or through the performance evaluation process, it considers that each
Director brings business experience and expertise to the Board which enhances the Board’s ability to respond flexibly and 
speedily to the needs of the Company.
Mr. Roberts has indicated his intention to resign as a non-executive Director of the Company from the conclusion of the Annual
General Meeting, having served his second period of three years on the Board.
(c) Directors’ interests and remuneration
Details of the Directors’ interests in the share capital of the Company and their remuneration are disclosed in the Directors’
Remuneration Report on pages 51 to 59.
Volex Group plc Annual Report & Accounts 2005 61
58812 Volex R & A 44-64.qxd  19/7/05  10:11 am  Page 61 62
Directors’ Report
Small related party transactions
As a result of a firm placing of shares and a placing and open offer of shares by the Company which completed on 30 June 2005,
there were three transactions with related parties requiring disclosure in accordance with 9.8.4(3)R of the Listing Rules of the
Financial Services Authority. Unicorn Asset Management Ltd (including the interests of Eaglet Investment Trust plc and Unicorn
Investment Funds ICVC - a holder of more than 10% of the issued share capital of the Company) subscribed for 1,238,151
ordinary shares, Mr. Chae (a Director of the Company) subscribed for 1,090,000 ordinary shares and Mr. Payzant (a Director of the
Company) subscribed for 372,560 ordinary shares. In each case, the subscriber was a related party and the number of shares
represented less than 5% but more than 0.25% of the market capitalisation of the Company.
Substantial shareholdings
As at 30 June 2005 the Company had been notified, in accordance with sections 198 to 208 of the Companies Act 1985, of the
following interests in the ordinary share capital of the Company.
Number of Percentage
Name of holder ordinary shares held
Australian Mutual Provident Group 973,220 3.29
Britannic Assurance plc 1,525,000 5.16
Cycladic Capital Management plc 3,710,000 12.56
Goldman Sachs Group Inc.
Including the interests of:
Goldman Sachs International 2,920,000 9.88
Halifax Group plc 911,025 3.08
Platinum Investment Trust plc 2,100,000 7.11
Sterling Investment Group Limited 1,425,000 4.82
Unicorn Asset Management Ltd
Including the interests of:
Eaglet Investment Trust plc 2,774,753 9.39
Unicorn Investment Funds ICVC 892,546 3.02
The above numbers do not reflect share interests allotted on 29 June 2005 and admitted on 30 June 2005 pursuant to the firm
placing and placing and open offer of shares.
No other interest amounting to 3% or more of the ordinary share capital of the Company had been notified to the Directors as at
30 June 2005.
Charitable and political contributions
During the year the Group made charitable donations of £10,114 (2004 - £4,543). No political donations were made.
Disabled employees
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant
concerned. In the event of an employee becoming disabled, every effort is made to ensure that his/her employment with the
Group continues and that, where necessary, appropriate re-training is arranged. It is the policy of the Group that the training,
career development and promotion of disabled persons should, as far as possible in the circumstances of each particular case, 
be the same as that of other employees.
Employee consultation
The Group places considerable value on the involvement of its employees and has continued to keep them informed on matters
affecting them as employees and on the various factors affecting the performance of the Group. The Group has continued its
policy and practice of informing and consulting its employees through a system of regular joint meetings between members of 
the operational management teams and the employees themselves and, where appropriate, employee representatives.
58812 Volex R & A 44-64.qxd  19/7/05  10:11 am  Page 62 Directors’ Report
Supplier payment policy
The Group’s policy is to pay suppliers on settlement terms agreed with each supplier. The average number of days outstanding
during the financial year ended 3 April 2005 in respect of trade creditors was approximately 54 days (2004 – 52 days).
Auditors
In accordance with the recommendation of the Audit Committee as disclosed on page 46 and section 384 of the Companies Act
1985, a resolution to re-appoint Deloitte & Touche LLP as the Company’s auditor will be proposed at the forthcoming Annual
General Meeting.
Annual General Meeting
The 2005 Annual General Meeting of the Company will be held on Thursday 8 September 2005. The Notice of Meeting is set out
in a separate circular (the “Circular”) to shareholders dated 29 July 2005. The form of proxy is distributed to shareholders together
with the Circular.
In addition to the ordinary business which will be put to the Annual General Meeting, there will be four items of special business
put to the meeting, full details of which are set out in the Circular. These will be proposed as separate resolutions relating to the
cancellation of the share premium account, the adoption of a new long term incentive plan and also separate resolutions enabling
the Directors to allot relevant securities and to allot ordinary shares for cash under sections 80 and 95 of the Companies Act 1985
respectively.
In accordance with the Articles of Association, and in view of the deferment of payment of dividends in respect of cumulative
preference shares, holders of cumulative preference shares are entitled to attend and vote, either in person or by proxy, at the
Annual General Meeting.
Approval of Directors’ Remuneration Report 2005
In accordance with the Companies Act 1985, Directors of listed companies are required to prepare a detailed Directors’ Remuneration
Report, which must be approved by the shareholders at the Annual General Meeting. The Directors’ Remuneration Report for the
financial year ended 3 April 2005 is set out on pages 51 to 59. An ordinary resolution will be proposed to approve the Directors’
Remuneration Report at that meeting.
On behalf of the Board
Mark Ashcroft
Director & Company Secretary
Dornoch House
Kelvin Close
Birchwood Science Park
Warrington WA3 7JX
30 June 2005 
Volex Group plc Annual Report & Accounts 2005 63
58812 Volex R & A 44-64.qxd  19/7/05  10:11 am  Page 63 64
Five Year 
Summary
2005 2004 2003 2002 2001
£’000 £’000 £’000 £’000 £’000
Turnover 244,551 238,353 230,066 275,696 418,299
Operating profit/(loss) before goodwill amortisation
and exceptional operating items 1,528 2,486 573 (548) 35,219
Goodwill amortisation (302) (328) (933) (871) (899)
Exceptional operating items (8,532) (6,680) (8,652) (1,033) -
Operating (loss)/profit (7,306) (4,522) (9,012) (2,452) 34,320
(Loss)/profit on ordinary activities before taxation,
goodwill amortisation and exceptional items (2,588) (1,337) (4,020) (5,868) 27,427
Exceptional items 1,918 - - (6,278) (3,344)
(Loss)/profit on ordinary activities before taxation (9,504) (8,345) (13,605) (14,050) 26,528
(Loss)/profit on ordinary activities after taxation (13,928) (11,206) (12,657) (10,143) 18,838
Assets employed:
Fixed assets 15,328 27,670 38,218 55,297 64,179
Net current assets 7,740 44,447 54,760 64,759 69,050
Creditors: amounts falling due after more 
than one year (51) (39,586) (47,845) (60,602) (61,612)
Provisions (4,148) - - (139) -
Net assets 18,869 32,531 45,133 59,315 71,617
Financed by:
Shareholders’ funds* 18,869 32,531 45,133 59,315 71,617
*Including non-equity interests of £80,000.
Key statistics
Adjusted (loss)/earnings per share (23.8)p (14.7)p (10.8)p (12.7)p 79.9p
Basic (loss)/earnings per share (47.2)p (39.1)p (44.3)p (35.5)p 66.1p
Average number of ordinary shares 29,540,692 28,650,462 28,602,637 28,592,218 28,487,198
Dividend per share n/a n/a n/a 5.5p 28.0p
Gearing* 162% 97% 86% 85% 82%
Return on average shareholders’ funds** (54%) (29%) (24%) (15%) 29%
Return on average net assets*** (28%) (12%) (18%) (4%) 53%
Share price - high 181p 200p 262p 830p 2,155p
- low 53p 41p 51p 155p 660p
* Net debt excluding debt issue costs/shareholders’ funds
** (Loss)/profit for the financial year/average shareholders’ funds
*** Operating (loss)/profit/average of net assets excluding current asset investments
All activity has arisen from continuing operations.
58812 Volex R & A 44-64.qxd  19/7/05  10:11 am  Page 64 Shareholder
Information
Financial calendar
2004/2005
Unaudited preliminary results announced 6 June 2005
Annual General Meeting 8 September 2005
2005/2006
Interim results published November 2005
Year end 2 April 2006
Preliminary results announced June 2006
Useful web sites:
www.volex.com Includes Company news, press releases, Company information and latest financial reports.
www.capita-irg.com The registrar’s site enables you to view details of your shareholding, address and dividend mandates. 
You can also get guidance on the site, for example on how to change a dividend mandate or address, 
or request replacement documents. You will need your investor code to access your personal details. 
This is on your share certificate or dividend tax voucher.
Registered office
Dornoch House, Kelvin Close, Birchwood Science Park, Warrington WA3 7JX
Registered number
158956 (Registered in England and Wales)
Auditors
Deloitte & Touche LLP
Bankers
Barclays Bank PLC
Bank of America
Royal Bank of Scotland PLC
Registrars
Capita Registrars plc, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU
Solicitors
Allen & Overy
Stockbrokers
Evolution Securities Limited
Registered Office
and Advisers
Volex Group plc Annual Report & Accounts 2005 65
01 Financial Highlights
02 Total Solutions in Cable Assemblies
04 Products and Worldwide Locations
06 Chairman’s Statement
09 Chief Executive’s Review
13 Financial Review
16 Board of Directors
17 Consolidated Profit and Loss Account
18 Consolidated Statement of Total Recognised Gains and Losses
18 Reconciliation of Movements in Consolidated Shareholders’ Funds
19 Balance Sheets
20 Consolidated Cash Flow Statement
21 Statement of Accounting Policies
24 Notes to the Accounts
44 Independent Auditors’ Report to the Members of Volex Group plc
45 Corporate Governance Report
49 Social, Ethical and Environmental Report
51 Directors’ Remuneration Report
60 Directors’ Report
64 Five Year Summary
65 Shareholder Information
65 Registered Office and Advisers
58812 Volex R & A COVER.qxd  14/7/05  7:33 pm  Page 2 Annual Report & Accounts 2005     Volex Group plc
Volex Group plc
Dornoch House
Kelvin Close
Birchwood Science Park
Warrington WA3 7JX
England
T +44 (0)1925 830101
F +44 (0)1925 830141
W www.volex.com
Annual Report
& Accounts 2005
Volex Group plc
58812 Volex R & A COVER.qxd  14/7/05  7:33 pm  Page 1