REG - Volution Group plc - AGM Trading Update

VolutionAnnouncement

13/12/2023 07:15

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RNS Number : 5575W  Volution Group plc  13 December 2023

 

 

 

Wednesday 13 December 2023

 

 

Volution Group plc

AGM Trading Update for 4 months ended 30 November 2023

Strong start to FY 2024

 

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 which ended 30 November 2023.

 

Trading update

 

Revenue for the four months which ended 30 November 2023 was c. £121 million,
up 8.0% versus the prior year.  Organic growth at constant currency was 2.9%
and inorganic growth was 7.7%. The foreign exchange translation impact was
2.6% adverse.

 

All three geographic regions grew earnings in the period with the strongest
performance coming from our UK residential activities. Both public and private
refurbishment in the UK has been supported by greater customer awareness of
indoor air quality, and resolution of mould and condensation issues. Across
the Group over two-thirds of revenue is derived from the refurbishment
market.  Despite the significant reduction in new build completions, this
market benefits from regulatory drivers moving demand towards higher value
energy efficient ventilation solutions.

 

Similar energy efficiency supportive trends have assisted us in other markets,
notably decentralised heat recovery in the Netherlands and the move towards
low energy consuming ceiling fans in Australia. Where our exposure is more
weighted towards new build activity, notably in Germany and in our OEM
activity, we have experienced weaker performance as higher interest and
mortgage rates have led to subdued demand.

 

Gross and operating profit margins have improved compared to FY23 due to
strong pricing discipline, an ongoing focus on our operational excellence
programme, including material value engineering initiatives, and the
introduction of new products.

 

Our recent acquisitions in France, Slovenia and New Zealand are progressing
well.

 

Full year outlook ahead of expectations

 

Whilst new build market conditions remain challenging, our refurbishment
activities continue to benefit from strong regulatory drivers and consumer
focus on eliminating the damaging health impacts of mould and condensation in
buildings. Our strong start to the financial year, together with the tailwind
from the three acquisitions completed in the calendar year, gives the Board
confidence in delivering earnings ahead of the current range of market
expectations for the financial year(1).

 

 

 

-Ends-

 

 

Note:

1.    The Board believes current market forecasts for the year ending 31
July 2024 to be adjusted earnings per share in the range of 25.3p to 26.3p

 

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 22 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, VMI, I-Vent.

Australasia: Simx, Ventair, Manrose, DVS.

 

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",
"anticipate", "estimate", "expect", "project", "intend", "plan", "should",
"may", "assume" and other similar words. By their nature, forward-looking
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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