Volution shares surge following positive financial report
Shares in energy efficient ventilation equipment manufacturer, Volution Group plc, have jumped following a positive trading update from the Crawley-based company.
In its preliminary results posted to the London Stock Exchange, the company reported revenues for the 12 months ending 31 July 2022 of £307.7 million, representing a 12.9 per cent increase on 2021’s £272.6 million.
Volution has reported ‘good’ organic revenue growth in its three markets: the UK, continental Europe and Australasia, along with a rise in its non-UK revenue from 58.7 per cent to 61.6.
Strong cash generation in the second half of the year saw a full year adjusted operating cash flow of £50.4 million.
The company has also reported positive progress in its sustainability goals, sourcing 67.2 per cent of plastic in its manufacturing facilities from recycled sources, and earning 66.1 per cent of its revenue from low-carbon, energy saving products.
Volution has seen its shares rise by 3.55 per cent in the last five days, with an initial surge following the announcement levelling out into an overall increase in share price.
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Chief executive Ronnie George said: "We have again achieved a strong performance, with good organic revenue growth across all three of our geographies and maintaining our operating margin in the face of challenging operating conditions.
"We further increased the group's product and geographic diversification in the year, with non-UK customers now representing 61.6 per cent of our revenue. Our strategic investment in higher levels of component and finished goods inventory, a decision taken over one year ago, has helped underpin excellent service levels.
"Progress with sustainability has been equally strong. Recycled plastics content in our facilities is now up to 67.2 per cent and low carbon content of sales, additionally boosted by the acquisition of Energy Recovery Industries, is now at 66.1 per cent.
"The energy crisis has focused customers' minds on the importance of heat recovery ventilation and this category now accounts for over 30 per cent of group revenue. This desire to reduce heating bills, a tightening of regulations relating to carbon reduction in buildings, as well as heightened awareness of the importance of air quality to health, continues to drive demand for our innovative solutions."
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Featured image credit: Volution Group