Preliminary Results 2016


Strong results with revenue growth of 19% and EPS up 15%

Volution Group plc (“Volution” or “the Group” or “the Company”, LSE: FAN), a leading supplier of ventilation products to the residential and commercial construction markets, today announces its audited financial results for the 12 months ended 31 July 2016.

Highlights 2016 2015 Change Movement in
Revenue (£m) 154.5 130.2 18.7% 18.6%
Adjusted operating profit (£m) 32.5 29.4 10.4% 10.3%
Adjusted profit before tax (£m) 31.3 27.5 13.9% 13.8%
Reported profit before tax (£m) 18.4 15.5 18.3% 18.0%
Basic and diluted EPS (p) 7.8 5.9 32.5% 32.2%
Adjusted basic and diluted EPS (p) 12.6 11.0 14.5% 14.0%
Adjusted operating cash flow (£m) 31.1 27.6 12.6%  
Dividend per share (p) 3.80 3.30 15.2%  
Net debt (£m) 36.1 21.2 14.9  


The Group uses some alternative performance measures to track and assess the underlying performance of the business. These measures include adjusted operating profit, adjusted profit before tax, adjusted basic and diluted EPS and adjusted operating cash flow. For a definition of all adjusted and non-GAAP measures, see the glossary of terms in note 20.

Financial highlights

  • Four acquisitions completed in the year broadening our geographic range and routes to market.
  • Revenue growth of 18.7% (18.6% at constant currency) comprised:
    • organic revenue growth of 3.0% (3.1% at constant currency); and
    • inorganic revenue growth of 15.7% (15.5% at constant currency) as a result of acquisitions.
  • Adjusted operating profit growth of 10.4% to £32.5 million (10.3% at constant currency).
  • As anticipated, adjusted operating profit margin declined by 1.6%, as a consequence of new acquisitions. Like-for-like adjusted operating profit margin improved by 0.2 percentage points to 22.8%.
  • Reported profit before tax of £18.4 million (2015: £15.5 million).
  • Net debt increased as a result of four acquisitions made in the year; adjusted EBITDA ratio of 1.0x.
  • Full year dividend of 3.80 pence per share, up 15.2%.
  • Adjusted EPS growth of 14.5% to 12.6 pence (2015: 11.0 pence).

Strategic highlights

  • We saw an increase in sales of high end products such as quiet, silent and energy-efficient fans and the launch of a range of app-controlled fans in the Group, driving organic growth.
  • Four acquisitions completed during the year with all integration activity progressing as anticipated:
    • Ventilair provides the Group with access to markets in both Belgium and the Netherlands.
    • Energy Technique (trading as Diffusion) complements the Group’s leading position in the UK with its strong position in the niche market of fan coils for heating and cooling of both commercial and residential buildings. Diffusion sells mainly into the new build market.
    • NVA Services (trading as National Ventilation and Airtech) provides the Group with additional brands and routes to the UK market. It supplies ventilation products for both residential and commercial applications.
    • Welair, a small heat recovery manufacturer in Sweden, provides the Nordic business with a wider product portfolio and greater exposure to the new build market.
  • OEM (Torin-Sifan) revenue growth was assisted by growth in the Electronically Commutated (EC) motor sales category in both the heating and ventilation markets.

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

“In our second full financial year since listing, we continued to deliver strong revenue and earnings growth, assisted by the completion of four acquisitions. Total revenue was £154.5 million, an increase of 18.7% compared to the prior year, with the organic highlights being growth in the Nordics of 11.3% and 8.8% in the OEM (Torin-Sifan) segment.

The four acquisitions completed in the year are substantially integrated in to the Group and are opening up access to new markets, with significant product cross selling and swap-out opportunities, all of which will underpin our future growth.”


The new financial year has started well and notwithstanding the ongoing uncertainty in the UK post the EU Referendum, our acquisitions completed in the 2016 financial year, as well as new product launches and the various sales initiatives across the Group, give us confidence in delivering further growth in 2017.