StockMarketWire.com - Volution Group saw strong revenue growth in the year to the end of July and said it anticipated results in line with the board's forecasts.

The group - a leading supplier of ventilation products to the residential and commercial construction markets - said that revenue in the 12 month period was £185 million, a 20% increase (15% on a constant currency basis) compared with the prior year.

This comprised 7.6% organic growth (2.4% on a constant currency basis), with 13% the result of new acquisitions.

A trading update said: "Organic growth was helped by a strong performance in the Nordics where revenue for the year grew by 5.1% on a constant currency basis and in our UK Residential New Build sector where revenue grew by 8.3%, along with continuing growth in the order book.

"UK RMI trends improved compared to the first half of the year with full year growth of 8.6% (an organic decline of 3.7%).

"We were pleased with Private Residential RMI delivering organic growth of 1.6% in the second half of the year. UK Commercial revenue grew by 52% mainly as a result of acquisitions, with 1.1% organic growth.

"Exports from the UK grew 31%, 21% on a constant currency basis, helped by acquisitions and strong constant currency organic growth of 11%, mostly resulting from strong sales of our market leading heat recovery systems and fan coil units in Eire.

"Revenue in Central Europe grew organically by 16% (1.7% on a constant currency basis) and Torin-Sifan (our OEM segment) grew organically during the year by 2.8% on a constant currency basis."

Volution also completed two acquisitions during the period which further broadened and strengthened our market and geographical diversity: Breathing Buildings in the UK (December 2016) and VoltAir System in Sweden (May 2017).

It said that since acquisition, VoltAir System had delivered a significant project order intake.

It said the integration of the acquisitions was progressing in line with expectations and both businesses would be earnings enhancing in FY 2018.

Chief executive Ronnie George said: "I am delighted with the progress that the Group has made during the year.

"The challenges in UK Residential RMI, most notably in the public sector, have continued in the year just ended but we have delivered good organic growth in our other market sectors.

"Private RMI returned to growth in the second half, underpinned by various sales and product initiatives with further developments underway for the 2018 financial year in both the public and private market sectors.

"Integration of the two acquisitions in the year is progressing well, increasing our exposure to the new construction markets in both the Nordics and in the UK.

"Whilst uncertainty continues in the UK economy as a consequence of plans to leave the EU, our increasing market and geographical diversity gives us confidence for the year ahead."





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