Strong revenue growth of 18.6%; four acquisitions completed
Volution Group plc (LSE: FAN; “the Group” or “Volution”), a leading supplier of ventilation products to the residential and commercial construction markets, today announces a Trading Update, following the completion of its financial year on 31st July, 2016.
Revenue in the 12 month period was £154 million, an 18.6% increase compared with the prior year (18.4% on a constant currency basis). This comprised 3.0% organic growth (2.8% on a constant currency basis), with 15.6% the result of acquisitions completed in the year.
Organic growth was helped by a very strong performance in the Nordics where revenue for the year grew by 9.8% on a constant currency basis. This was supported by several new product launches, in particular the world’s first “app” controlled extractor fan, which we will be introducing progressively to our other geographic markets.
In the UK, residential new build revenue grew organically by 7.2%, with the order intake growing more than revenue. RMI trends improved slightly from the first half with a decline of 3.1% (an organic decline of 4.5%); revenues will benefit further from the recent acquisition of NVA Services in the UK.
Supplementing the good organic growth of the business in the period, Volution also completed four acquisitions in the year, with the most recent completing in May. The integration of each acquisition is progressing well, in line with our expectations. Each acquisition will be earnings accretive in the coming year.
The Group anticipates that its full-year results for the financial year 2016 will be in line with the Board’s expectations.
Ronnie George, Chief Executive Officer of Volution Group plc, said:
"This has been another exciting year of progress for the Group, as we have again delivered both organic and acquisition led growth in line with our strategy. The four acquisitions completed in the year are progressing well and provide us with a wider geographic and market exposure. Whilst there is obvious uncertainty in the UK market post the EU referendum, our most recent acquisitions and geographic diversity give us confidence for the year ahead."
The full year results for 2016 will be announced on 11th October 2016. This announcement contains inside information.
Volution Group plc
Ronnie George, Chief Executive Officer
+44 (0) 1293 441501
Ian Dew, Chief Financial Officer
+44 (0) 1293 441536
+44 (0) 207 353 4200
James Macey White
Notes to Editors
Volution Group plc (LSE: FAN) is a leading supplier of ventilation products to the residential and commercial construction market in the UK and northern Europe.
The Group sold approximately 22 million ventilation products and accessories in the twelve months ended 31 July 2016. The Volution Group operates through two divisions: the Ventilation Group and the OEM (Torin-Sifan) division. The Ventilation Group consists of 11 key brands - Vent-Axia, Manrose, Diffusion, National Ventilation, Airtech, Fresh, PAX, Welair, inVENTer, Brüggemann and Ventilair, focused primarily on the UK, Nordic and central European ventilation markets. The Ventilation Group principally supplies ventilation products for residential and commercial ventilation applications. The OEM (Torin-Sifan) division, supplies motors, fans and blowers to OEMs of heating and ventilation products for both residential and commercial construction applications in Europe.
For more information, please go to: http://www.volutiongroupplc.com/
Cautionary statement regarding forward-looking statements
Certain statements made in this announcement may be forward-looking statements. Such statements are based on current expectations and assumptions and are subject to a number of known and unknown risks and uncertainties that may cause actual events or results to differ materially from any expected future events or results expressed or implied in these forward-looking statements. Persons receiving this announcement should not place undue reliance on forward-looking statements. Unless otherwise required by applicable law, regulation or accounting standard, the Group does not undertake to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.