Strong demand boosts profits at Volution

Volution Group reported a jump in half-year profits on Thursday, boosted by strong demand across the UK residential market.

The FTSE 250 firm, which makes products intended to improve indoor air quality, said revenues in the six months to 31 January rose nearly 9% to £162.3m, while adjusted operating profits were ahead 7% at £34.2m.

Reported pre-tax profits rose 6% to £22.6m.

The performance was driven by strong demand in UK residential repairs, maintenance and improvements, the firm noted, with homeowners and landlords addressing mould and condensation issues in particular. Volution said the energy crisis had caused people to reduce heating, thereby exacerbating both mould and condensation risks.

Ronnie George, chief executive, said: "We delivered a strong first-half performance across our three regions, driven in particular by strong residential RMI.

"We have successfully managed inflationary headwinds and supply chain challenges through pricing discipline and inventory optimisation, and in doing so maintained our operating margin at 21%."

Looking to the second half, George added: "Although mindful of the cautious sentiment in some of our segments, residential RMI demand remains supportive and inflationary pressures and supply chain challenges are easing."

As at 1100 GMT, shares in Volution were ahead 9% at 388p.