REG - Volution Group plc - AGM Trading Update

VolutionAnnouncement

14/12/2022 07:00

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RNS Number : 6111J  Volution Group plc  14 December 2022

 

 

 

 

 

Embargoed to 07:00

Wednesday 14 December 2022

 

 

 

Volution Group plc

AGM Trading Update for 4 months to 30 November 2022

 

Volution Group plc ("Volution" or "the Group" or "the Company", LSE: FAN), a
leading international designer and manufacturer of energy efficient indoor air
quality solutions, today announces an update on trading covering the four
months to 30 November 2022.

 

Trading update

 

Group revenue for the four months to 30 November 2022 increased by 7%
year-on-year at constant currency ("cc") to c.£112 million with organic
growth of 5.5% (cc), delivered through a combination of both volume and price
increases.  All three geographic regions grew organically.

 

The UK delivered organic revenue growth of 3.8% (cc).  Strong growth in
residential markets and good growth in our OEM revenue stream, more than
offset weaker revenues in commercial. In Continental Europe, organic revenue
growth was 6.4% (cc). Both ClimaRad and ERI performed particularly strongly,
demonstrating the continued attractiveness and growth of our heat recovery
solutions. In Australasia, organic growth of 8.5% (cc) was driven by continued
market share gains in Australia, and good growth in New Zealand.

 

Our excellent levels of customer service, focus on operational excellence,
strong brands, attractive product portfolio and pricing power have all
underpinned our ability to deliver on the Group's operating margin target.
 Given the economic environment it is pleasing that since the year end we
have continued to see sales and profits track ahead of the same period last
year.

 

The Group retains a strong balance sheet, with leverage at historically low
levels, providing us with opportunity for potential earnings enhancing
acquisitions.

 

Regulatory drivers

 

We continue to see strong regulatory initiatives driven by the need to
decarbonise buildings, drive improvements in air quality, and reduce damp and
mould in residential homes.

 

In the UK, the Future Homes Hub has been running a task group to help inform a
planned formal consultation on the 2025 Future Homes Standard.  In addition,
we have had a public consultation on the Decent Home Standard for Private
Rental properties, and the Secretary of State for Housing has written to
council leaders and social housing providers calling for action on housing
conditions, including mould and condensation.

 

In Continental Europe, regulatory improvement from the Energy Performance of
Buildings Directive continues to drive sales of energy efficient continuous
ventilation systems, including heat recovery.  In Australia, recent changes
to the National Construction Code build on existing provisions to further
decrease health risks associated with condensation in new homes.

 

Commenting on the Outlook, Ronnie George, Chief Executive Officer said:

 

"I am immensely proud of the excellent customer service we are maintaining
across all of our markets and the considerable focus from our valued
colleagues in delivering 'Healthy Air, Sustainably'.  Although the wider
macro-economic backdrop remains uncertain, the regulatory, energy efficiency
and indoor air quality drivers have never been stronger.

We are pleased with the start to the new financial year and in our ability to
achieve our margin targets in the face of inflation. With our geographic and
end-market diversity, our ongoing focus on operational excellence, and our
cash generation, we are well positioned to continue to capitalise on the many
structural growth opportunities in the months ahead."

 

-Ends-

 

 

For further information:

 Volution Group plc
 Ronnie George, Chief Executive Officer             +44 (0) 1293 441501
 Andy O'Brien, Chief Financial Officer              +44 (0) 1293 441536

 FTI Consulting                                     +44 (0) 203 727 1340
 Richard Mountain
 Susanne Yule

 

Volution Group plc Legal Entity Identifier: 213800EPT84EQCDHO768.

 

Note to Editors:

 

Volution Group plc (LSE: FAN) is a leading international designer and
manufacturer of energy efficient indoor air quality solutions.  Volution
Group comprises 19 key brands across three regions:

 

UK: Vent-Axia, Manrose, Diffusion, National Ventilation, Airtech, Breathing
Buildings, Torin-Sifan.

Continental Europe: Fresh, PAX, VoltAir, Kair, Air Connection, Rtek, inVENTer,
Ventilair, ClimaRad, ERI Corporation.

Australasia: Simx, Ventair, Manrose.

 

For more information, please go to: www.volutiongroupplc.com
(http://www.volutiongroupplc.com)

 

Cautionary statement regarding forward-looking statements

This document may contain forward-looking statements which are made in good
faith and are based on current expectations or beliefs, as well as assumptions
about future events. You can sometimes, but not always, identify these
statements by the use of a date in the future or such words as "will",
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statements are inherently predictive and speculative and involve risk and
uncertainty because they relate to events and depend on circumstances that
will occur in the future. You should not place undue reliance on these
forward-looking statements, which are not a guarantee of future performance
and are subject to factors that could cause our actual results to differ
materially from those expressed or implied by these statements. The Company
undertakes no obligation to update any forward-looking statements contained in
this document, whether as a result of new information, future events or
otherwise.

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