Volution Group plc Trading Update (9660Z)
17 December 2014 - 6:00PM
UK Regulatory
TIDMFAN
RNS Number : 9660Z
Volution Group plc
17 December 2014
Date: 17(th) December 2014
Volution Group plc - Trading Update
Volution Group plc ("Volution" or the "Group", LSE: FAN) a
leading supplier of ventilation products to the residential
construction market, and in advance of the Group's Annual General
Meeting to be held at 11:00 a.m. today, reports on current
trading.
The Group is comprised of the Ventilation Group - serving the
UK, Nordic and German markets - and the OEM division, which trades
under the Torin-Sifan brand.
Trading performance
Performance in the first quarter of our financial year has been
in line with our expectations. We continue to see good levels of
growth in our UK and Nordic Ventilation businesses, together with
increasing demand for our higher value-added fans and systems. As
described on 23(rd) October 2014, with our FY2014 results, overall
sales in Germany declined, however, we have remedial actions in
hand. In OEM (Torin-Sifan), sales of boiler spares have remained
soft as a result of the unseasonably mild start to the winter.
Group margins have continued to improve as a result of a more
favourable product mix and price increases in the Ventilation
Group, compensating the modestly lower overall organic revenue
growth.
On a constant currency basis, Group revenue increased by 14.1%
compared to the same period last year. On a reported basis, Group
revenues increased by 11.0% to GBP33.1 million, after allowing for
an adverse currency translation effect caused by the weakening of
the Swedish Krone.
Organic revenue growth on a constant currency basis was positive
at 1.0% (-1.1% lower on a reported basis), which comprised of 3.2%
(0.6% on a reported basis) growth from our Ventilation Group and a
contraction of 9.7% within our OEM division (-9.7% on a reported
basis).
Within UK Ventilation, we saw strong growth in gross sales(1)
for the New Build Residential systems sector of 15% partly as a
result of the increased penetration of central system ventilation
for use in new housing applications. This sector continues to be
buoyed by regular project wins examples of which we announced
earlier this year for "Saffron Square" and "One The Elephant."
Financial position
Our financial position remains strong with continuing cash
generation, resulting in a small reduction in net debt since the
FY2014 year end.
Ronnie George, Group Chief Executive, commented:
"The Group has continued to perform well, with increased demand
for our products and the benefit of the profitable acquisitions
that we made in the prior year. We are taking action to address the
temporary softness in Germany where we have appointed additional
sales agents to help improve our sales effort, whilst in the OEM
division we are developing our product offering to make us less
dependent on boiler spares.
We continue to pursue attractive acquisition opportunities in
the ventilation sector, and our expectations for continued overall
growth at attractive margins in FY2015 remain unchanged."
-Ends-
Enquiries:
Volution Group plc
Ronnie George, Chief Executive Officer +44 (0) 1293 441501
Ian Dew, Chief Financial Officer +44 (0) 1293 441536
Brunswick +44 (0) 20 7404 5959
volution@brunswickgroup.com
Craig Breheny, Simone Selzer, Chris Buscombe
Notes to Editors
1. Gross sales are stated before deduction of rebates and settlement discounts.
2. In this update, and going forward, Organic growth is
calculated as a like-for-like measure of business performance,
calculated at constant currency to eliminate translation effects on
consolidation. It includes the growth of recent acquisitions over
the like-for-like performance of the acquired business in our
ownership, in the corresponding period since acquisition, expressed
as a percentage of prior year reported revenue.
3. Volution Group plc (LSE: FAN) is a leading supplier of
ventilation products to the residential construction market in the
UK, Sweden and Germany.
The Group sold approximately 20 million ventilation products and
accessories in the financial year ended 31 July 2014. It consists
of five key brands, focused primarily on the UK, Swedish and German
ventilation markets - Vent-Axia, Manrose, Fresh, PAX and inVENTer -
and operates through two divisions: the Ventilation Group, which
principally supplies ventilation products for residential
construction applications in the UK, Sweden and Germany and
ventilation products for commercial construction applications in
the UK; and OEM (Torin-Sifan), which 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:
http://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 company news service from the London Stock Exchange
END
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