UK's Volution FY revenue slightly beats estimates, partly on acquisitions
UK's Volution FY revenue slightly beats estimates, partly on acquisitions
Overview
UK indoor air quality solutions maker's full-year revenue rose 15.7%, slightly beating analyst expectations
Adjusted operating profit and adjusted pretax profit for the year beat analyst estimates
Organic growth driven by Continental Europe and Australasia, offset by weaker UK market
Outlook
Company says FY27 has started with organic growth and positive revenue from AC Industries
Volution expects UK market challenges to persist, especially in new-build residential
Company expects Continental Europe and Australasia to drive growth in FY27
Result Drivers
GEOGRAPHIC MIX - Strong organic growth in Continental Europe and Australasia offset weaker UK market
ACQUISITIONS - Inorganic growth from acquisitions, including AC Industries and Fantech, contributed significantly to revenue
OPERATIONAL EXCELLENCE - Margin expansion attributed to efficiency improvements, disciplined pricing and product mix
Company press release: ID:nRSH0718Ya
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue | Slight Beat* | GBP 484.80 mln | GBP 482.93 mln (7 Analysts) |
FY Adjusted Operating Profit | Beat | GBP 112.40 mln | GBP 100.03 mln (7 Analysts) |
FY Adjusted Pretax Profit | Beat | GBP 99.20 mln | GBP 93.12 mln (7 Analysts) |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electrical components & equipment peer group is "buy"
Wall Street's median 12-month price target for Volution Group PLC is GBp757.50, about 16.2% above its October 7 closing price of GBp652.00
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 16 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)