Volution to beat earnings estimates after strong UK trading

Ventilation products group Volution expects to beat profit forecasts after a strong performance across the board in the first four months of the financial year.

The company said that all three of its geographic regions increased earnings over the four months to 30 November, but the strongest performance came from UK residential activities.

Regulatory drivers for energy-efficient ventilation solutions have helped, along with strong demand by customers refurbing properties to resolve mould and condensation issues.

Group revenues were up 8% year-on-year in the four-month period at £121m, representing 2.9% organic growth at constant currency. Across the group over two-thirds of revenue comes from the refurbishment market.

"Whilst new build market conditions remain challenging, our refurbishment activities continue to benefit from strong regulatory drivers and consumer focus on eliminating the damaging health impacts of mould and condensation in buildings," the company said in a statement.

"Our strong start to the financial year, together with the tailwind from the three acquisitions completed in the calendar year, gives the board confidence in delivering earnings ahead of the current range of market expectations for the financial year."

Current market forecasts are pointing to adjusted earnings per share of 25.3-26.3p for the year to 31 July 2024, compared with 25.8p the previous year.