Volution ups dividend as price rises boost profit

Adjusted operating profit rose to £31.9m in the six months to the end of January from £27.7m a year earlier as revenue increased 13.6% to £149.6m. Volution increased its interim dividend by 21% to 2.3p a share.

Pretax profit jumped 50.5% to £21.4m as acquisition costs a year earlier were not repeated.

The company said it acted early to buy extra inventory and raise selling prices in response to "unprecedented levels of input cost inflation". Companies are facing soaring energy and transport costs as well as rising wages with inflation at levels not seen for decades.

Chief executive Ronnie George said: "We continue to focus on customer service, underpinned by good availability in our inventory of key assembly components. Coupled with some slowing of input cost inflation, we are well positioned for the rest of this financial year."