TIDMFAN
RNS Number : 4032X
Volution Group plc
10 August 2018
Friday 10 August 2018
Volution Group plc
Trading Update for the Financial Year ending 31 July 2018
Revenue growth of 11.3%; four acquisitions completed
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 2018.
The Group anticipates that results for the financial year 2018,
aided by acquisitions, will be in line with the Board's
expectations.
Revenue in the 12 month period was GBP206 million, an 11.3%
increase (11.2% on a constant currency basis) compared with the
prior year. This comprised 2.9% organic growth (2.5% on a constant
currency basis), with 8.4% the result of new acquisitions.
Organic growth benefitted from a stronger performance in our UK
sector, most notably in Residential New Build with growth of 13.3%,
significantly ahead of growth in residential new build completions,
and Exports from the UK growing at 22.6% compared to the prior
year: another period of substantial growth. Private Residential RMI
growth was 3.3% in the year despite the disruption caused by the
commissioning of our new manufacturing facility in Reading. As
anticipated, due to the ongoing difficult market conditions, our
Public Residential RMI revenue declined 10.4% in 2018. Volution
remains committed to this important market sector and new product
innovations brought to market in 2018 are now starting to gain
momentum with specifiers and will assist with the turnaround of
this revenue stream in our new financial year. Commercial revenue
grew by 2.3% as a result of the full year effect of prior year
acquisitions, organic revenue declined by 3.4% mainly as a result
of weaker RMI markets; however, the new build commercial projects
order intake was stronger in the second half of the year.
Revenue in the Nordics grew by 19.2%, 20.4% on a constant
currency basis, of which organic growth was 2.9%. Central Europe
revenue grew by 3.7%, 1.0% at constant currency. In this area we
have re-profiled our product range in Belgium and in the
Netherlands; in Germany we launched our new leading range of
Xenion(TM) decentralised heat recovery products which have been
well received by the market.
Revenue in Australasia contributed 4.4% to our growth, with the
integration of Simx progressing very well.
Torin-Sifan (our OEM segment) grew organically during the year
by 2.8%, 1.8% on a constant currency basis and the new range of EC3
motorised impellors gained significant momentum with customers in
the second half of the year.
New factory in Reading
In January 2018, we commenced production in our new purpose
built injection moulding and fan assembly facility in Reading, UK.
At our half year we reported that the full transition to this new
facility would be complete by the end of July 2018; however the
project has taken longer than anticipated and has caused additional
cost to be incurred which will be reported separately in the full
year results. Customer service in the second half has been below
our usual high level but has now been restored to more normal
levels of performance and we expect further improvements in the
near future. Over the coming months we will finalise this project,
and once fully completed, it will provide us with the anticipated
significant increase in injection moulding, ducting extrusion and
fan assembly capacity to further underpin future growth.
M&A strategy
Volution completed four acquisitions during the year which
further broadened and strengthened our market and geographical
diversity: Simx in New Zealand, Oy Pamon Ab in Finland, Air
Connection ApS in Denmark and AirFan B.V. (now renamed Vent-Axia
B.V.) in the Netherlands. The integration of the acquisitions is
progressing in line with our expectations and the businesses will
be earnings enhancing in FY 2019.
Ronnie George, Chief Executive Officer of Volution Group plc,
said:
"The Group made good progress with an 11.3% increase in revenue
and the completion of four acquisitions. We completed our largest
acquisition to date, Simx in New Zealand, widening Volution's
capability in new, geographically distinct markets with the leading
residential ventilation products supplier in the region. The two
acquisitions in the Nordics, Oy Pamon in Finland and Air Connection
in Denmark, will strengthen and enlarge our presence in that
region. Whilst there is continuing uncertainty in the UK economy as
a consequence of plans to leave the EU, our increasing market and
geographical diversity, together with significant investment in new
product innovation, gives us confidence for the year ahead."
The full year results for the financial year ended 31 July 2018
will be announced on 11 October 2018.
-Ends-
For further information:
Enquiries:
Volution Group plc
Ronnie George, Chief Executive
Officer +44 (0) 1293 441501
Ian Dew, 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 Ian Dew, Chief Financial
Officer.
Legal Entity Identifier: 213800EPT84EQCDHO768.
Note to Editors:
Volution Group plc (LSE: FAN) is a leading supplier of
ventilation products to the residential and commercial construction
markets in the UK, the Nordics, Central Europe and Australasia.
The Volution Group operates through two divisions: the
Ventilation Group and the OEM (Torin-Sifan) division. The
Ventilation Group consists of 16 key brands - Vent-Axia, Manrose,
Diffusion, National Ventilation, Airtech, Breathing Buildings,
Fresh, PAX, VoltAir, Welair, Kair, Pilpit, Air Connection,
inVENTer, Ventilair and Simx 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.
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
TSTFKCDDFBKDOFK
(END) Dow Jones Newswires
August 10, 2018 02:00 ET (06:00 GMT)
Volution (LSE:FAN)
Historical Stock Chart
From Apr 2024 to May 2024
Volution (LSE:FAN)
Historical Stock Chart
From May 2023 to May 2024