LONDON (ShareCast) - (Sharecast News) - Volution Group said on Friday that full-year earnings per share were set to be ahead of consensus after a "strong" first half.
In the six months to the end of January 2024, adjusted pre-tax profit increased to £35m from £31.8m in the same period a year earlier, with revenue up 6.3% to £172.5m.

The company, which designs and manufactures energy efficient indoor air quality solutions, lifted its interim dividend to 2.8p a share from 2.5p.

Volution said a strong performance from acquisitions and UK residential - where revenue was up 19.4% - offset weaker results in UK OEM and Continental Europe.

Chief executive Ronnie George said: "We made strong progress in the first half of the year, against a backdrop of higher interest rates and weaker new build demand. UK residential was once again the standout performer, with tighter regulation and strong social housing demand continuing to drive activity levels.

"Our greater exposure to refurbishment supported organic revenue growth in the period, and inorganic growth was strong due to a good performance from our recent acquisitions. Continued strong execution of our operational excellence model enabled us to expand group adjusted operating margins and grow earnings in all three geographic regions.

"The excellent operating cash generation further strengthened our balance sheet and positions us favourably to continue to invest in future growth, both organic and through acquisitions."

George said the strong performance in the first half, along with tailwinds from its three recent acquisitions, gives the board confidence in delivering adjusted EPS for the current financial year "slightly ahead" of consensus expectations of 26.1p.

"With our diversified geographic and end-market positioning, and agile business model, along with favourable regulatory trends and the increasing importance of indoor air quality, Volution remains well positioned to continue growing shareholder value into the future," he said.

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