REG - Volution Group plc - Pre-Close Trading Update

VolutionAnnouncement

24/07/2025 07:00

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RNS Number : 3161S  Volution Group plc  24 July 2025

 

Thursday 24 July 2025

 

Volution Group plc

 

Pre-close Trading Update for the Financial Year ending 31 July 2025

Continued good progress; expect adjusted EPS slightly ahead of current market
consensus

 

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, provides its scheduled Pre-close Trading Update for the
financial year ending 31 July 2025 ("FY25").

 

Volution has continued to make good progress in FY25 and the Board expects
adjusted earnings per share to be slightly ahead of current market consensus
(see note 1).

 

The Board is expecting to deliver organic revenue growth on a constant
currency (cc) basis for FY25 of over 5%, up from 4% at the half year. Total
Group revenue growth is expected to be over 20%(cc), which includes eight
months contribution from Fantech, acquired in December 2024.

 

On a Regional view:

·    Strong organic growth in the UK has been underpinned by continued
growth in residential revenue. Within this our refurbishment demand has
remained resilient against a backdrop of generally weak market conditions. Our
new residential house building revenue has performed very well, supported by
regulations and our leading low carbon product range. Exports to Ireland which
are similarly focused on residential new build systems have been strong.
Commercial revenue has returned to growth following a weak first half.

·    Continental European revenue growth is expected to be slightly
stronger in the second half than in the first half. Performance in the Nordics
has continued broadly in line with the first half, with Swedish refurbishment
performing relatively well and weaker demand in the new construction
activities. Central Europe has performed strongly in the year, driven by our
heat recovery propositions in ClimaRad and ERI, and by VMI in France where we
continue to focus on broadening the product range through the introduction of
new products from across the Group.

·    In Australasia, second half market conditions and organic revenue
performance have continued to remain broadly unchanged from the first half,
with a challenging demand picture in New Zealand contrasting with a good
performance in Australia. The integration of Fantech into the Group is going
very well, with a strong revenue performance in the eight months
post-acquisition.

 

We expect Group adjusted operating margins to be broadly in line with the
first half of the year, with operating margins on an organic basis expected to
increase modestly, offset by the inorganic dilution from the acquisition of
Fantech. Fantech's second half performance has been encouraging, and we are
confident in its trajectory to reach the Group's 20% operating margin target
in the medium term.

 

The weakening of overseas currencies, most notably the Australian and New
Zealand dollars, has had a negative translation impact in the financial year
of approximately £5 million to revenue and just over £1 million to adjusted
operating profit.

 

Operating cash conversion (note 2) is expected to be above our targeted level
of 90%, assisted by strong management of inventory and good working capital
management across the Group.  The strength of our cash generation gives us
good capacity for future investment and earnings accretive acquisitions.

 

Ronnie George, Volution Chief Executive Officer, commented:

"Volution has delivered good progress during the second half of the year with
organic growth expected to be slightly ahead of our target range of 3-5%. The
acquisition of Fantech, our largest to date, is going well, and integration
has progressed in line with our expectations. I am hugely grateful to all our
local teams' endeavours in supplying leading air quality solutions and
providing our customers with "healthy air, sustainably".

"Given our good progress in the second half of the year, the Board now expects
adjusted earnings per share to be slightly ahead of current market consensus
for FY25."

The full year results for the year ending 31 July 2025 will be announced on
Thursday, 9 October 2025.

 

-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

Note:

1.       Current market forecasts for the year ending 31 July 2025
(taken from Bloomberg) are:

·    Adjusted earnings per share in the range of 31.6p to 32.5p with a
consensus of 32p

2.       Cash conversion defined as: Adjusted operating cash flow /
(Adjusted operating profit + amortisation).

 

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 29 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, Fantech, Ideal Air, NCS Acoustics,
Air Design, Major Air, Systemaire, Burra Steel.

 

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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