TIDMFAN
RNS Number : 2999I
Volution Group plc
11 December 2020
Embargoed to 07:00
Friday 11(th) December 2020
Volution Group plc
AGM Trading Update for 4 months to 30 November 2020
Earnings significantly ahead of expectations and 20% operating
margin target achieved early
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, today announces an
update on trading covering the four months to 30(th) November
2020.
Trading update
We continue to prioritise the safety and security of our
employees, suppliers and customers, maintaining a full service of
our essential products and services. All of our facilities are
operating fully compliant with local Covid-19 guidelines and whilst
there are a number of employees working remotely from their normal
place of work, we continue to provide good levels of customer
service and responsiveness to the strong demand we are experiencing
in all of our markets.
Group revenues were GBP90.7m in the first four months of the
financial year, an organic growth of 6.8% (at constant currency
("cc")). Group activity has performed consistently well in each of
the four months and this level of activity coupled with the
operational excellence and streamlining initiatives has enabled the
Group to achieve its adjusted operating margin target of 20% a full
eight months earlier than expected. The margin expansion is broad
based and sustainable, with all three of our geographic areas
contributing to a significant improvement over the prior year.
In the UK organic growth for the first four months was 3.1%
(cc), with residential refurbishment delivering an organic growth
of 10.4%. Public residential refurbishment was up 6.6% on the prior
year supported by our innovative product portfolio. Our significant
market share, broad residential product portfolio and launches of a
number of premium ranges have enabled us to deliver very strong
organic growth in this area. Residential new build systems revenue
declined 6%, however sales have steadily progressed since the start
of our new financial year with the order intake in the same period
being in-line with the prior year. In commercial we have seen
revenue decline by 1.2%, however, the order intake is significantly
ahead of the prior period. Our OEM business revenue increased by
9.4% (cc) on the prior year with good take up from new accounts for
our energy efficient EC3 motorised impeller.
Continental Europe has delivered an organic growth of 7.9% (cc)
in the first four months of the new financial year. The Nordics has
delivered growth of 12.9% (cc) with our market leading residential
refurbishment ranges in Sweden being the strongest performer. Over
the last year we have continued to introduce new products into our
existing channels and this coupled with a stronger order book for
new projects has delivered a strong organic growth. In Central
Europe our organic growth is 1.6% (cc), building on a full year
growth in FY20 of 7.5% (cc).
Australasia has delivered the strongest organic growth across
our three geographic regions of 18% (cc). In New Zealand we
continue to benefit from the "Healthy Homes Standards" and in
Australia, since acquiring Ventair in March 2019, we have made
significant headway with market share gains, again utilising the
Group's enriched product portfolio and new product launches to win
new accounts.
On 2(nd) December we completed a sustainability linked GBP150m
revolving credit facility, further underpinning and supporting our
ability to execute our strategy.
Summary
The Board is very pleased with the start to the new financial
year with strong organic growth and considerable operating margin
expansion, and as a result, earnings are significantly ahead of
expectations. The Covid-19 pandemic continues to impact on our
markets and in the UK the ongoing negotiations to finalise an
acceptable trade agreement with the EU are a concern. However, we
believe that the increasing awareness of how indoor air quality
impacts on health, the heightened awareness from local governments
in all of our geographies on the need to tackle carbon emissions
and energy consumption, underpinned by our leading brands, allows
us to benefit from these trends and leaves us well positioned to
make further good progress in the months and years ahead.
Ronnie George, Chief Executive Officer, commented:
"We are delighted with current trading, the strong organic
growth in the first four months of the year and delivering a 20%
operating margin earlier than expected. The organic growth of 6.8%
is a credit to our local leadership teams and the incredible
commitment of our loyal and dedicated employees as we operate our
adapted business model in the face of the ongoing global
pandemic."
-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
Volution Group plc 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
Cautionary statement regarding forward-looking statements
This document may contain forward-looking statements which are
made in good faith and are based on current expectations or
beliefs, as well as assumptions about future events. You can
sometimes, but not always, identify these statements by the use of
a date in the future or such words as "will", "anticipate",
"estimate", "expect", "project", "intend", "plan", "should", "may",
"assume" and other similar words. By their nature, forward-looking
statements are inherently predictive and speculative and involve
risk and uncertainty because they relate to events and depend on
circumstances that will occur in the future. You should not place
undue reliance on these forward-looking statements, which are not a
guarantee of future performance and are subject to factors that
could cause our actual results to differ materially from those
expressed or implied by these statements. The Company undertakes no
obligation to update any forward-looking statements contained in
this document, whether as a result of new information, future
events or otherwise.
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END
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