Volution Group set to report earnings at top end of market expectations

By Stephen Emerson

22 July 2022

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Volution CEO Ronnie George

Air quality solutions provider Volution Group plc is to announce a strong set of results with margin levels maintained despite economic headwinds.

The Crawley-based company released a pre-close trading update for the financial year ending 31 July 2022 that said Full year adjusted Earnings Per Share (EPS) are expected to be at the top end of the range of market expectations.

Revenue is expected to grow to approximately £308m, up 13% on the previous year, with group operating margins maintained at 21% due to pricing initiatives.

The company's share price rose by 4% following the pre-close trading update release on Thursday.

Ronnie George, chief executive officer of Volution, said: "Volution expects to deliver another year of strong revenue growth. Our early action to invest in additional inventory to support good levels of customer service, our pricing initiatives, and the agility of our commercial teams in maintaining operating margins will deliver a strong set of results.

"I am particularly proud of progress with our sustainability initiatives and the Group wide engagement of our colleagues in spearheading our low carbon revenue growth and significant increase in the use of recycled materials in our production facilities.

"Whilst we are mindful of the wider macroeconomic backdrop, Volution continues to benefit from a diverse geographic and varied end market sector exposure, as well as increasing regulatory drivers for our energy efficient indoor air quality solutions, which provides us with confidence in making further progress in the year ahead."

The company has said that its 2021 acquisition of Energy Recovery Industries, a producer of heat exchangers for heat recovery ventilation products, was completed and was performing well.

The Group expects to announce its preliminary results for the year ending 31 July 2022 on Thursday, 6 October 2022.

By Stephen Emerson

Stephen Emerson is the Managing Editor of The Business Magazine and is responsible for the publication's print publications and online properties including the newly launched Biz News websites in Hampshire and Dorset.

Stephen has been a journalist for 20 years and has worked at local, regional and national publications and led a team which made The Scotsman website one of the fastest growing news sites in the UK with over eight million monthly users.

He has a keen interest in technology, property and corporate finance and telling the stories of the people behind the successful firms in these sectors.