Volution Group plc Acquisition of Klimatfabriken & Trading Update (7819N)

TIDMFAN

RNS Number : 7819N

Volution Group plc

03 February 2021

Wednesday 3 February 2021

Volution Group plc

Acquisition of Nordiska Klimatfabriken and Trading Update

Vo lution Group plc ("Volution" or "the Group" or "the Company", LSE: FAN), a leading international designer and manufacturer of energy efficient indoor air quality solutions, is pleased to announce that it has signed an agreement for the acquisition of Nordiska Klimatfabriken AB ("Klimatfabriken") in Sweden.

Klimatfabriken specialises in the provision of premium low carbon ventilation equipment for the residential refurbishment market in Sweden, which the business designs and manufactures at its facility in Solö just outside Strängnäs in Sweden. Revenue in the year ended 31(st) December 2020 was approximately SEK 12 million. The acquisition will be completed on a debt free, cash free basis for cash consideration of SEK 40 million (approximately GBP3.5 million), to be funded from the Group's existing cash and our recently announced Sustainability Linked Revolving Credit Facility.

The Klimatfabriken business complements our existing market-leading residential refurbishment ventilation position in the Nordics, and integration into our existing infrastructure in the Nordics will be complete by the end of this financial year.

Ronnie George, Volution Chief Executive Officer, commented:

"As a strategically important acquisition, the additional product portfolio from Klimatfabriken provides new cross-selling opportunities for our existing Group companies, and strengthens our market position within the Nordics. Concentrating exclusively on low carbon, energy saving ventilation solutions, they are very well aligned with our strategy of delivering healthy air, sustainably."

Trading Update

The Board continues to be pleased with the strong trading performance of the Group and expects revenue for the half-year to 31(st) January 2021 to be around 8.5% ahead of the comparative period, on a constant currency basis. Whilst COVID-19 disruption and the well-publicised issues around imports and exports through UK ports have created some input material supply challenges, our order intake remains strong, and our asset light and flexible operating model continues to be resilient in servicing demand. The Board is very pleased with our growth in the first half of the financial year and that we will have achieved our operating margin target of 20%.

A more detailed update on the half-year performance will be provided with our interim results.

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For further information:

 
 
 Volution Group plc 
 Ronnie George, Chief Executive 
  Officer                          [phone] 
 Andy O'Brien, Chief Financial 
  Officer                          [phone] 
 
                                   [phone] 
 Tulchan Communications             4200 
 James Macey White 
 David Allchurch 
 Giles Kernick 
 

Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014 as amended by The Market Abuse (Amendment) (EU Exit) Regulations 2019) prior to its release as part of this announcement.

Volution Group plc Legal Entity Identifier: 213800EPT84EQCDHO768.

Note to Editors:

Volution Group plc (LSE: FAN) is a leading international designer and manufacturer of energy efficient indoor air quality solutions. Volution Group comprises 17 key brands across three regions:

UK: Vent-Axia, Manrose, Diffusion, National Ventilation, Airtech, Breathing Buildings, Torin-Sifan.

Continental Europe: Fresh, PAX, VoltAir, Kair, Air Connection, inVENTer, Ventilair, ClimaRad.

Australasia: Simx, Ventair, Manrose.

For more information, please go to: www.volutiongroupplc.com

Cautionary statement regarding forward-looking statements

This document may contain forward-looking statements which are made in good faith and are based on current expectations or beliefs, as well as assumptions about future events. You can sometimes, but not always, identify these statements by the use of a date in the future or such words as "will", "anticipate", "estimate", "expect", "project", "intend", "plan", "should", "may", "assume" and other similar words. By their nature, forward-looking statements are inherently predictive and speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. You should not place undue reliance on these forward-looking statements, which are not a guarantee of future performance and are subject to factors that could cause our actual results to differ materially from those expressed or implied by these statements. The Company undertakes no obligation to update any forward-looking statements contained in this document, whether as a result of new information, future events or otherwise.

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February 03, 2021 02:00 ET (07:00 GMT)