Volution Group (FAN)

Sector:

Construction and Building Materials

Index:

FTSE 250

434.60p
   
  • Change Today:
      7.00p
  • 52 Week High: 448.00
  • 52 Week Low: 336.60
  • Currency: UK Pounds
  • Shares Issued: 197.79m
  • Volume: 288,104
  • Market Cap: £859.61m
  • RiskGrade: 270

Volution sees FY ahead of expectations, shares rally

By Michele Maatouk

Date: Thursday 22 Jul 2021

LONDON (ShareCast) - (Sharecast News) - Volution rallied on Thursday as it said revenue and earnings for the full year were set to be ahead of market expectations after strong second-half trading.
In a pre-close update for the year to the end of July, the company - which manufacturers ventilation equipment - said group revenue is expected to be above £270m, up around 25% from the previous year and 15% higher compared to the pre-pandemic 2019 level.

At constant currency, organic revenue is set to rise by more than 20% on the prior year, supplemented by inorganic growth from its acquisitions in the year.

Adjusted earnings per share are expected to come in at around 20.5p, above Volution's expectations.

UK revenue is set to grow by more than 20% on the year, with second half growth of almost 50% compared to the second half of 2020, which was hit by the Covid-19 crisis.

Volution said residential refurbishment has performed particularly strongly in the year, with upselling of low carbon and silent solutions increasing their share of this category. Meanwhile, a "strong" housing market with increased transactions, householders spending more time at home and greater awareness of the importance of indoor air quality has further supported the division, it said.

Residential new build activity has been stronger in recent months as housebuilders have increased output to meet demand and Volution said its commercial project orderbook is "healthy" going into the new financial year.

In Continental Europe, the company expects revenue to be up 20% on the year, or 12% on an organic constant basis. Australasian revenues are set to rise 35% on a constant currency basis.

Volution said the inflationary pressures that have affected the industry throughout the second half have had an impact on its business, with its key input materials and inbound freight costs rising sharply.

"We have largely mitigated this cost pressure, with our strong trade brands and pricing power allowing price increases such that we expect full year adjusted operating margin to be broadly in line with the circa 21% delivered in the first half of the year," it said.

Chief executive Ronnie George said: "It has been a hugely rewarding year, with three acquisitions completed, promotion to the FTSE 250 in June 2021 and the award of the London Stock Exchange Green Economy Mark validating our market leading position.

"Increasing awareness of the importance of indoor air quality, coupled with ever tightening regulations relating to energy efficiency and carbon reduction from buildings, will continue to provide supportive long-term tailwinds for our business."

At 0915 BST, the shares were up 6% at 480p.



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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Volution Group Market Data

Currency UK Pounds
Share Price 434.60p
Change Today 7.00p
% Change 1.64 %
52 Week High 448.00
52 Week Low 336.60
Volume 288,104
Shares Issued 197.79m
Market Cap £859.61m
RiskGrade 270

Volution Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
96.56% below the market average96.56% below the market average96.56% below the market average96.56% below the market average96.56% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average
Price Trend
67.66% above the market average67.66% above the market average67.66% above the market average67.66% above the market average67.66% above the market average
60.98% above the sector average60.98% above the sector average60.98% above the sector average60.98% above the sector average60.98% above the sector average
Income
77.55% below the market average77.55% below the market average77.55% below the market average77.55% below the market average77.55% below the market average
94.12% below the sector average94.12% below the sector average94.12% below the sector average94.12% below the sector average94.12% below the sector average
Growth
8.86% above the market average8.86% above the market average8.86% above the market average8.86% above the market average8.86% above the market average
21.95% above the sector average21.95% above the sector average21.95% above the sector average21.95% above the sector average21.95% above the sector average

What The Brokers Say

Strong Buy 4
Buy 2
Neutral 3
Sell 0
Strong Sell 0
Total 9
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Volution Group Dividends

  Latest Previous
  Interim Final
Ex-Div 28-Mar-24 23-Nov-23
Paid 07-May-24 19-Dec-23
Amount 2.80p 5.50p

Trades for 28-Mar-2024

Time Volume / Share Price
16:35 4,355 @ 434.60p
16:35 252 @ 434.60p
16:35 112,018 @ 434.60p
16:35 210 @ 434.60p
16:35 206 @ 434.60p

Volution Group Key Personnel

CEO Ronnie George
CFO Andy O'Brien
Chair Nigel Lingwood

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