TIDMFAN
RNS Number : 7946I
Volution Group plc
13 August 2019
Embargoed until 07:00
Tuesday 13 August 2019
Volution Group plc
Trading Update for the Financial Year ended 31 July 2019
Revenue growth of 14.6%. Reading facility upgrade and
acquisition of Ventair both complete.
Volution Group plc (LSE: FAN; "the Group" or "Volution"), a
leading supplier of ventilation products to the residential and
commercial construction markets, today announces a Trading Update,
following the completion of its financial year on 31 July 2019.
The Group anticipates that results for the financial year 2019,
will be in line with expectations.
Revenue in the year was GBP236 million, a 14.6% increase (15.7%
on a constant currency basis) of which 12.0% was the result of
acquisitions. Organic growth was 2.6% (3.6% on a constant currency
basis) with an improving trend through the year (first half 3.2%,
second half 3.9%).
In the UK, we benefitted from a return to growth in Public
Residential RMI of 5.3%, partly as a result of the significant
enhancement we have made to our product portfolio and sales
processes in the last two years. Private Residential RMI grew by
1.7% for the year with accelerating growth in the second half of
3.8%. Residential New Build Systems grew by 8.6%, supported by
regulatory drivers relating to carbon efficient residential
dwellings. Commercial revenue grew by 4.1% supported by our new
product introductions for natural and hybrid ventilation. Overall
we delivered growth for the year in the UK of 3.3%.
Our project in the UK to rationalise two older facilities in to
one new purpose-built facility in Reading is now complete. Service
levels have returned to normal leaving us with substantial capacity
headroom to support future growth.
Revenue in the Nordics grew by 28.1% (32.6% on a constant
currency basis) primarily as a result of acquisitions completed in
July 2018. The new build construction market in Sweden has been
weak for over twelve months and, whilst our exposure in Sweden is
primarily to the refurbishment market, this has also continued to
slow, resulting in an organic decline of 6.6% (decline of 2.3% on a
constant currency basis). Our Kair brand in Finland, acquired in
July 2018, has delivered strong revenue growth during the year
under our ownership.
Revenue in Central Europe grew by 8.9% (9.3% on a constant
currency basis) supported by new product introductions in Germany
and the considerable increase in cross selling of new and existing
products from across the Group in to Belgium and the
Netherlands.
Revenue in Australasia grew by 172% (176% on a constant currency
basis) driven by a full year of trading from Simx and the
acquisition of Ventair. Organic revenue grew by 8.7% (10.0% on a
constant currency basis). We now have a leading market position in
residential ventilation in our Australasian market and have
successfully launched many Volution products there, new to both
Australia and New Zealand, in the last four months.
Torin-Sifan, our OEM segment, grew organically during the year
by 4.5% (4.8% on a constant currency basis), and the sales of the
new range of EC3 motorised impellers continued to gain momentum in
the second half of the year. As previously reported, our operations
in Torin-Sifan were adversely impacted during the first half of the
year by procurement issues which manifested in higher input costs
for electronic components, however we are confident these issues
have now been substantially resolved.
M&A strategy
Growing by acquisition is a core tenet of our strategy, and
Volution's acquisition in March 2019 of Ventair in Australia
complements our presence in Australasia with Simx in New Zealand
whilst further broadening and strengthening the Group's market
reach and geographical diversity. The four acquisitions completed
in the previous year are now fully integrated and progressing in
line with our expectations.
Ronnie George, Chief Executive Officer of Volution Group plc,
said:
"The Group made good progress again in the year with a 14.6%
revenue growth and an improving organic growth of 2.6% (3.6% on a
constant currency basis). We're pleased the project to rationalise
two older production facilities in to one new purpose built
future-proofed facility in Reading in the UK is now complete, and
are delighted to have acquired Ventair in Australia, further
increasing our geographic diversity and market reach. Whilst there
continues to be significant uncertainty in the UK economy as a
consequence of plans to leave the EU, our considerable investment
in new products, our leading brands, our increasing geographic
diversity and the breadth of our product portfolio, gives us
confidence in the future."
The full year results for the financial year ended 31 July 2019
will be announced on 9 October 2019.
-Ends-
For further information:
Enquiries:
Volution Group plc
Ronnie George, Chief Executive
Officer +44 (0) 1293 441501
Andy O'Brien, Chief Financial
Officer +44 (0) 1293 441536
+44 (0) 207 353
Tulchan Communications 4200
James Macey White
David Ison
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No. 596/2014) prior to its release as part of this
announcement. The person responsible for arranging the release of
this announcement on behalf of Volution is Andy O'Brien, Chief
Financial Officer.
Legal Entity Identifier: 213800EPT84EQCDHO768.
Note to Editors:
The Volution Group operates through two divisions: the
Ventilation Group and the OEM (Torin-Sifan) division. The
Ventilation Group comprises 16 key brands - Vent-Axia, Manrose,
Diffusion, National Ventilation, Airtech, Breathing Buildings,
Fresh, PAX, VoltAir, Welair, Kair, Air Connection, inVENTer,
Ventilair, Simx and Ventair, focused primarily on the UK, the
Nordic, Central European and Australasian ventilation markets. The
Ventilation Group principally supplies ventilation products for
residential and commercial ventilation applications. The OEM
(Torin-Sifan) division supplies motors, fans and blowers to OEMs of
heating and ventilation products for both residential and
commercial construction applications in Europe. For more
information, please go to: www.volutiongroupplc.com
Cautionary statement regarding forward-looking statements
Certain statements made in this announcement may be
forward-looking statements. Such statements are based on current
expectations and assumptions and are subject to a number of known
and unknown risks and uncertainties that may cause actual events or
results to differ materially from any expected future events or
results expressed or implied in these forward-looking statements.
Persons receiving this announcement should not place undue reliance
on forward-looking statements. Unless otherwise required by
applicable law, regulation or accounting standard, the Group does
not undertake to update or revise any forward-looking statements,
whether as a result of new information, future developments or
otherwise.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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