Preliminary Results 2015



Volution Group plc (“Volution” or “the Group” or “the Company”, LSE: FAN), a leading supplier of ventilation products to the residential and commercial construction market, today announces its audited financial results for the 12 months to 31 July 2015.

Highlights 2015   2014   Change Change
Revenue (£m) 130.2   120.7   7.9% 12.4%
Adjusted EBITDA (£m) 32.1 1 28.5 1 12.6% 17.8%
Adjusted operating profit (£m) 29.4 1 26.5 1 10.9% 18.8%
Adjusted profit before tax (£m) 27.5 1 14.0 1 96.4% 111.4%
Reported profit/(loss) before tax (£m) 15.5   (15.5)      
Basic and diluted EPS (p) 5.9   (14.0)      
Adjusted basic and diluted EPS (p) 11.0 1 8.8 1,2,3 25.0%  
Adjusted operating cash flow (£m) 27.6 1 22.8 1 21.1%  
Dividend per share (p) 3.30 4 n/a      
Net debt (£m) 21.2 5 42.9 5    


The Group uses 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. 

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

“In our first full financial year as a listed company we made good progress. Revenue was £130.2 million up 12.4% at a constant currency, reflecting both organic growth of 4.9%, and inorganic growth from the acquisition of Brüggemann and inVENTer. Our adjusted EPS of 11.0p is a 25% increase versus the prior year pro-forma EPS of 8.8p.

I am particularly pleased with our cash flow performance, which reduced net debt from £42.9 million to £21.2 million. Our strong cash flow coupled with the refinanced banking facilities completed in February 2015, provides significant flexibility for further accretive acquisitions. The integration of our most recent acquisition, Ventilair Group, acquired in August 2015, is progressing well.”


The year has started positively with a very strong performance in the Nordics helped by new product launches, but with mixed results in the UK as softness in the residential RMI market was partly offset by growth in residential new build.

We remain focussed on delivering profitable growth and making further value enhancing acquisitions during this financial year.



  • Results ahead of our expectations despite significant currency headwinds.
  • Revenue growth of 7.9% (12.4% at constant currency) comprised of:
    • Organic revenue growth of 1.0% (4.9% at constant currency).
    • Inorganic revenue growth of 6.9% (7.5% at constant currency) mainly as a result of the full year effect of the acquisition of inVENTer in April 2014.
  • Ventilation Group revenue growth was 10.0% (14.9% at constant currency) including UK Residential New Build growth of 17.7%.
  • OEM (Torin-Sifan) revenue fell slightly due to a difficult end market for boiler spares during the mild winter.
  • Adjusted operating profit increased by 10.9% to £29.4 million from £26.5 million in 2014 (18.8% at constant currency) a margin of 22.6% of revenues (2014: 22.0%).
  • The Group’s reported profit before tax of £15.5 million (2014: loss of £15.5 million) improved significantly, helped by lower finance costs of £2.0 million (2014: £21.2 million) and lower exceptional items of £0.7 million (2014: £7.8 million).
  • Continued strong cash generation reduced year end net debt to £21.2 million (2014: £42.9 million).
  • Final dividend proposed of 2.25 pence per share.


  • Acquisition of Brüggemann Energiekonzepte GmbH based in Germany, for £1.6 million, completed in April 2015.
  • Integration of inVENTer completed and a number of new sales agent appointments in Germany are gaining traction with sales.  Integration of Brüggemann is progressing.
  • OEM (Torin-Sifan) electrically commutated direct current (EC/DC) motorised impeller manufacturing site commissioned and operational in October 2014.
  • New Group bank facility of £90 million, reducing gross debt and financing costs as well as providing more flexibility for potential acquisitions.

Strategic development after financial year end:

  • Acquisition of Ventilair Group International BVBA based in Belgium and the Netherlands, for £11.6 million, completed on 5 August 2015 (not consolidated into the Volution Group plc financial statements for this financial year).


1 Details of adjusted EBITDA, adjusted operating profit and adjusted profit before tax can be found in note 9. For a definition of all adjusted measures see the glossary of terms at note 20.

2 To provide a more meaningful comparison of our performance in the current period with that of the prior period we have presented the prior period after making pro-forma adjustments to reflect the higher cost of public ownership and to reflect the lower cost of our current debt structure. These are set out and explained in note 9.

3 On 23 June 2014, a share for share exchange converted the entire share capital (after reorganisation) of Windmill Topco Limited to new ordinary shares of Volution Group plc. The weighted number of shares has been calculated assuming the share for share exchange took place as from 1 August 2013. The pro-forma EPS assumes the same weighted average number of shares in the year ended 31 July 2014 as in the year ended 31 July 2015 to ensure we are showing a consistent comparison.

4 Interim dividend of 1.05 pence per share paid on 14 May 2015 and proposed final dividend for 2014/15 of 2.25 pence per share.

5 Net debt is defined as interest-bearing loans and borrowings less cash and cash equivalents.

6 For a definition of all adjusted measures see the glossary of terms in note 20 to the consolidated financial statements.