Volution Group plc Volution announces new reporting structure (5807E)

TIDMFAN

RNS Number : 5807E

Volution Group plc

02 March 2020

Monday 2 March 2020

Volution Group plc

Volution announces new reporting structure

Volution Group plc ("Volution" or "the Group" or "the Company", LSE: FAN), a leading supplier of ventilation products to the residential and commercial construction markets in the UK, Continental Europe and Australasia, today announces a change to its reportable operating segments.

On listing in June 2014, Volution was present in three countries (UK, Sweden and Germany) and generated 77% of its revenue from the UK. Our subsequent growth strategy has seen us acquire ten market leading brands across eight countries since listing, providing greater geographic diversity and moving the Group to one which now generates 52% of its revenue outside of the UK.

We have therefore decided to move to a reporting structure based around our three core geographies of the UK, Continental Europe and Australasia, commencing with our interim results for the six months ended 31(st) January 2020, which we will be announcing on 16(th) March. Included below are the previously reported interim results for the six months ended 31(st) January 2019 and the full year ended 31(st) July 2019 under the new geographic segmental structure.

We believe this new segmental reporting will improve performance visibility across the Group, as we continue to focus on delivering our strategy.

 
                                               Continental                         Central 
                                          UK        Europe   Australasia    / Eliminations   Consolidated 
 6 months ended 31 January 
  2019                                GBP000        GBP000        GBP000            GBP000         GBP000 
----------------------------------  --------  ------------  ------------  ----------------  ------------- 
 Revenue 
 External customers                   66,660        39,955         8,232                 -        114,847 
 Inter-segment                         6,226         5,085             -          (11,311)              - 
----------------------------------  --------  ------------  ------------  ---------------- 
 Total Revenue                        72,886        45,040         8,232          (11,311)        114,847 
----------------------------------  --------  ------------  ------------  ----------------  ------------- 
 Gross profit                         28,633        20,136         4,572                 -         53,341 
----------------------------------  --------  ------------  ------------  ----------------  ------------- 
 Results 
 Adjusted segment EBITDA              12,732         9,108         1,376             (799)         22,417 
 Depreciation and amortisation 
  of development costs, 
  software & patents                 (1,120)         (685)          (67)             (311)        (2,183) 
----------------------------------  --------  ------------  ------------  ----------------  ------------- 
 Adjusted operating profit/(loss)     11,612         8,423         1,309           (1,110)         20,234 
 Amortisation of intangibles 
  acquired                           (5,379)       (1,971)         (382)                 -        (7,732) 
 Exceptional items                         -             -             -           (1,216)        (1,216) 
----------------------------------  --------  ------------  ------------  ----------------  ------------- 
 Operating profit/(loss)               6,233         6,452           927           (2,326)         11,286 
 Unallocated expenses 
 Net finance cost                          -             -             -           (1,058)        (1,058) 
----------------------------------  --------  ------------  ------------  ----------------  ------------- 
 Profit/(loss) before 
  tax                                  6,233         6,452           927           (3,384)         10,228 
----------------------------------  --------  ------------  ------------  ----------------  ------------- 
 
 Operating Profit Margin               17.4%         21.1%         15.9%                            17.6% 
 
 
                                                Continental                         Central 
                                           UK        Europe   Australasia    / Eliminations   Consolidated 
 Year ended 31 July 2019               GBP000        GBP000        GBP000            GBP000         GBP000 
----------------------------------  ---------  ------------  ------------  ----------------  ------------- 
 Revenue 
 External customers                   135,536        77,985        22,177                 -        235,698 
 Inter-segment                         13,924         9,983             -          (23,907)              - 
----------------------------------  ---------  ------------  ------------  ---------------- 
 Total Revenue                        149,460        87,968        22,177          (23,907)        235,698 
----------------------------------  ---------  ------------  ------------  ----------------  ------------- 
 Gross profit                          58,529        40,592        11,958                 -        111,079 
----------------------------------  ---------  ------------  ------------  ----------------  ------------- 
 Results 
 Adjusted segment EBITDA               26,373        18,040         4,119           (2,053)         46,479 
 Depreciation and amortisation 
  of development costs, 
  software & patents                  (2,245)       (1,386)         (199)             (597)        (4,427) 
----------------------------------  ---------  ------------  ------------  ----------------  ------------- 
 Adjusted operating profit/(loss)      24,128        16,654         3,920           (2,650)         42,052 
 Amortisation of intangibles 
  acquired                           (10,759)       (3,750)         (931)                 -       (15,439) 
 Exceptional items                    (1,171)         (546)          (84)                 -        (1,801) 
 CFO succession costs                       -             -             -             (150)          (150) 
----------------------------------  ---------  ------------  ------------  ----------------  ------------- 
 Operating profit/(loss)               12,198        12,358         2,905           (2,800)         24,662 
 Unallocated expenses 
 Net finance cost                           -             -             -           (1,522)        (1,522) 
----------------------------------  ---------  ------------  ------------  ----------------  ------------- 
 Profit/(loss) before 
  tax                                  12,198        12,358         2,905           (4,322)         23,140 
----------------------------------  ---------  ------------  ------------  ----------------  ------------- 
 
 Operating Profit Margin                17.8%         21.4%         17.7%                            17.8% 
 

-Ends-

For further information:

 
 Enquiries: 
 Volution Group plc 
 Ronnie George, Chief Executive 
  Officer                          [phone] 
 Andy O'Brien, Chief Financial 
  Officer                          [phone] 
 
                                   [phone] 
 Liberum Capital Limited            2222 
 Neil Patel 
 Richard Bootle 
 Edward Phillips 
 
                                   [phone] 
 Tulchan Communications             4200 
 James Macey White 
 David Allchurch 
 Giles Kernick 
 

Legal Entity Identifier: 213800EPT84EQCDHO768.

Note to Editors:

Volution Group plc (LSE: FAN) is a leading supplier of ventilation systems and products to both the residential and commercial construction markets in the UK, Continental Europe and Australasia.

Volution Group comprises 16 key brands across the three regions:

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

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

Australasia: Simx, Ventair.

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

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March 02, 2020 02:00 ET (07:00 GMT)