Volution Group plc Trading Update (6817M)

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RNS Number : 6817M

Volution Group plc

25 May 2022

Embargoed to 07:00

Wednesday 25 May 2022

Volution Group plc

Trading Update

Continued strong performance

Volution Group plc ("Volution" or "the Group" or "the Company", LSE: FAN), a leading international designer and manufacturer of energy efficient indoor air quality solutions, today announces an update on trading covering the period to 30(th) April 2022.

Trading Update

The Group has continued to perform strongly through the second half of our financial year, with third quarter revenue growth of 17.6% at constant currency (cc), of which organic growth was 8.8% (cc). We have been particularly encouraged by our UK residential revenue, where growth rates have accelerated in the second half of the year, underpinned by a good growth in new build residential systems and strong public RMI demand.

Industry-wide there has been an unprecedented period of supply chain disruption over the last 12 to 18 months. Our strategy of holding higher levels of inventory on key, long lead time components, coupled with extensive work by our product engineering and supply chain teams to broaden our range of supply options, has enabled us to manage much of this disruption, and we are continuing to deliver very good levels of customer service in all three of our geographic regions.

Appropriate, decisive and early action on price, with further modest price increases in the second half of this financial year, has ensured that our Group operating margins have been maintained.

Outlook

Whilst the macro-economic environment is uncertain, our order books and activity levels, coupled with the regulatory and customer focus on improving energy efficiency in buildings, should continue to support demand. We therefore expect our earnings to be towards the upper end of market expectations for the current financial year .

Ronnie George, Chief Executive Officer, commented:

"We have continued with the strong progress shown in the first half of our financial year through our third quarter. Our proactive and early initiatives to manage supply chain and to build inventory during the first half of the year continue to underpin very good levels of customer service and our consistently disciplined approach to managing price has ensured we maintain our strong operating margins. I am also very proud of the ongoing focus on our sustainability initiatives, with accelerated progress during the third quarter in our adoption and use of recycled plastics."

-Ends-

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 
 Martin Pengelley 
 

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 19 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, Rtek, inVENTer, Ventilair, ClimaRad, ERI Corporation.

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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May 25, 2022 02:01 ET (06:01 GMT)