TIDMFAN

RNS Number : 3468H

Volution Group plc

03 December 2020

Thursday 3(rd) December 2020

Volution Group plc

Sustainability Linked Revolving Credit Facility

New and expanded GBP150m revolving credit facility with rates linked to delivery of

Group's sustainability targets

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, is pleased to announce the signing of a GBP150 million multi-currency "Sustainability Linked Revolving Credit Facility" plus GBP30 million accordion facility ("Facility").

The Facility, which replaces the Group's previous GBP120 million revolving credit facility, runs for three years to December 2023 with an option to extend for up to two additional years with the agreement of the four participant banks. Financial covenants relating to leverage (below 3.0x excluding leases) and interest cover (greater than or equal to 4.0x) remain consistent with our previous facility.

The Facility, which is aligned with the Loan Market Association "Sustainability Linked Loan Principles", incorporates two sustainability performance targets which are central to Volution's strategy of providing products and solutions which deliver "Healthy air, sustainably":

-- Percentage of sales revenue from low-carbon products (2025 target: 70%, 2020 actual: 59%); and

-- Percentage of plastic processed in owned factories from recycled sources (2025 target: 90%, 2020 actual: 56%).

Successful achievement of the annual targets, which are also disclosed in the Group's 2020 Annual Report and Accounts, results in the earning of a discount on margin which would then be used by Volution to invest in its sustainability initiatives and programmes. The Facility is provided by four lenders; HSBC UK (also acting as agent), Royal Bank of Scotland, Danske Bank and Bank of Ireland.

Andy O'Brien, Chief Financial Officer commented:

"Incorporating sustainability principles and performance targets into our financing facilities is a further example of Volution's commitment to sustainability and demonstrates how it is embedded in all aspects of our business. I am delighted that this new facility, coupled with our continuing excellent cash generation, will also provide good headroom in support of the Group's strategic focus on acquisitions."

Following on from the positive trends seen in August and September and referred to in our preliminary results announcement of 8(th) October, we have seen a continuation of strong organic growth and margin performance through October and November. A more comprehensive trading update will be provided on the day of our Annual General Meeting on 11(th) December 2020.

-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 
 
                                   +44 (0) 207 353 
 Tulchan Communications             4200 
 James Macey White 
 David Allchurch 
 Giles Kernick

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 16 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, inVENTer, Ventilair.

Australasia: Simx, Ventair.

For more information, please go to: www.volutiongroupplc.com

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