- Ventilation product supplier Volution Group said Thursday profits slipped as double-digit revenue growth was mainly offset by higher exceptional costs, lower margins and a stronger pound.

For the 12 months ended 31 July 2018, reported profit before tax fell 6.5% to £16.7m and revenue increased by 11.1% to £205.7m.

Profits were weighed down by a £5m owing to higher-than-expected costs from the relocation and operational disruption of moving to a new factory in Reading, UK, the company said.

'We have made excellent progress with our strategy, with four acquisitions completed in the second half of the year. Two acquisitions in the Nordics have increased our market exposure to this attractive region as well as further enriching our product portfolio, said Ronnie George, Chief Executive Officer.

'The acquisition of our long term partner in Australasia, Simx, has integrated well with several new product launches under way and has further diversified our geographic spread of markets. In the UK, the factory rationalisation project moving from two existing facilities into our new purpose built factory in Reading, resulted in a significant level of disruption to our customer service and additional cost; however, the move was substantially completed in July and efficiency improvements continue.'

'I believe that with this new facility we have substantial capacity headroom to underpin our further organic growth, specifically relating to the residential markets. Despite the extra costs incurred for this project, we delivered another year of good cash generation.'

At 10:20am: [LON:FAN] Volution Group Plc share price was -8.5p at 171.5p

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