Volution FY earnings seen at top end of market expectations

Ventilation equipment manufacturer Volution said on Thursday that full-year earnings had come in at the top end of market expectations, with strong sales growth and margins maintained throughout the year.

Volution expects to deliver "another strong performance" in the financial year, with revenue expected to have grown 13% to £308.0m and organic revenue growth at constant currency expected to be over 7%.

UK revenue was expected to grow more than 6%, while revenues from Continental Europe were predicted to close the year approximately 30% ahead of the prior year on a constant currency basis and Australasia was projected to deliver constant currency revenue growth of approximately 10%.

In addition to its improved revenue performance, Volution said adjusted earnings per share were pegged to be in the range of 22.9-23.8p per share and noted that group operating margins had been maintained at 21%.

Chief executive Ronnie George 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.

"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."

As of 0830 BST, Volution shares were up 5.53% at 391.50p.

Reporting by Iain Gilbert at Sharecast.com