Preliminary Results 2014



Volution Group plc (“Volution” or “the Group” or “the Company”, LSE: FAN), a leading supplier of ventilation products to the residential construction market, today announces its audited financial results for the 12 months to 31 July 2014.

Highlights 2014 2013 Change
Revenue (£m) 120.7 102.3 18.0%
Adjusted EBITDA 1 (£m) 28.5 23.8 19.8%
Adjusted operating profit 1 (£m) 26.5 22.2 19.4%
Adjusted profit before tax 1 (£m) 14.0 9.2 51.9%
Reported loss before tax (£m) (15.5) (4.2) -
Basic and diluted EPS 2 (p) (14.0) (2.3) -
Adjusted operating cash flow 3 (£m) 22.8 20.9 9.1%
Net debt 4 (£m) 42.9 172.7 £(129.8)m


The Group uses some alternative performance measures to track and assess the underlying performance of the business. These measures include adjusted EBITDA, adjusted operating profit, adjusted profit before tax and adjusted operating cash flow.


1. Details of adjusted EBITDA, adjusted operating profit and adjusted profit before tax can be found in note 8.
2. Details of earnings per share can be found in note 10.
3. Adjusted operating cash flow is defined as adjusted EBITDA plus or minus movements in operating working capital, less net investments in property plant and equipment and intangible assets (including cash held in escrow).
4. Net debt is defined as bank borrowings less cash and cash equivalents.

Financial highlights

  • Strong growth. Results in line with expectations.
  • Revenue in the year was £120.7 million, an 18.0% increase compared with the prior year.
  • Revenue growth comprised of 3.2% organic revenue growth (5.2% on a like-for-like currency basis), with inorganic revenue growth of 14.8% as a result of acquisitions.
  • Adjusted EBITDA increased by 19.8% to £28.5 million representing 23.6% of revenues (2013: 23.3%).
  • The Group’s reported pre-tax loss of £15.5 million (2013: loss of £4.2 million), was impacted by:
    • Exceptional items totaling £7.8 million (2013: £2.8 million). These related primarily to acquisition costs and IPO costs incurred during the period.
    • Amortisation and impairment of intangible fixed assets (customer base and trademarks) recognised at fair value on acquisition of the Group and of our subsidiaries of £13.1 million (2013: £10.1 million).
    • The write off of unamortised cost from three refinancing exercises of £8.3 million (2013: £0.6 million).
    • Finance expenses relating to the previous, higher level of gearing in the eleven months prior to listing.


  • Net debt reduced by £129.8 million mainly as a result of the conversion of investor debt to equity and the repayment of some bank debt from the proceeds of the new shares issued.

Strategic highlights


  • Acquisition of PAX in Sweden in August 2013, giving the Company a leading position in Swedish residential ventilation refurbishment market.
  • Acquisition of inVENTer in Germany in April 2014; its integration is progressing in line with the anticipated timetable.
  • Organic revenue growth was helped by an increase in new build residential systems sales in the UK, where the Group enjoyed an 11.2% growth.
  • Strong demand for products, especially newer, higher value added ventilation systems.
  • Major new project wins including the contract for Vent-Axia to supply Sentinel Kinetic Plus ventilation system units for the 414 apartments in the Saffron Square development in Croydon, London.
  • The current financial year has started in line with our expectations.

Dividend policy

  • The Board initially intends to target a dividend of approximately 30% of the Company’s adjusted net income for each financial year. It is expected that the first dividend will be payable following publication of the Company’s results for the six months ending 31 January 2015.

Commenting on the Group’s results, Ronnie George, Chief Executive Officer, said:

"The financial year saw the Company listed on the London Stock Exchange, as well as make important strategic acquisitions in Sweden and Germany. Our results for 2014 were strong, reflecting growth both organically and through acquisitions. Revenue was up year-on-year by 18.0% at £120.7 million and adjusted EBITDA grew strongly to £28.5 million or 23.6% of revenue, up 19.8% compared with 2013. Building on this platform, we will continue to strengthen our position as one of the leading players in the European market for ventilation products, including heat recovery systems.”