Volution (FAN) delivered a workmanlike performance in the six months to 31 January, and while all the geographical sectors recorded an improvement, tough trading conditions are expected to continue into the second half, according to chief executive Ronnie George.
Spending in the UK public housing sector was steered towards areas such as cladding, and this led to a decline in demand for ventilation products. However, this was more than offset by solid growth in residential repair, maintenance and improvement, as well as demand from residential new-build. Exports were also strongly ahead, rising 42 per cent thanks to a large contract in Japan as well as more business in mainland Europe.
During the year, Volution acquired Voltair System and Breathing Buildings, and has also bought Simx, a leading supplier of residential ventilation products in New Zealand, which will provide access to new markets there. Sales in the Nordic region grew by over a quarter, thanks mainly to the VoltAir acquisition, although organic growth was solid enough at 8.7 per cent.
Analysts at Peel Hunt are forecasting adjusted pre-tax profits for the year to July 2018 of £36.7m and EPS of 14.5p (from £34.6m and 13.6p in 2017).
| VOLUTION (FAN) | ||||
| ORD PRICE: | 198p | MARKET VALUE: | £394m | |
| TOUCH: | 198-206p | 12-MONTH HIGH: | 224p | LOW: 172p |
| DIVIDEND YIELD: | 2.2% | PE RATIO: | 26 | |
| NET ASSET VALUE: | 82p* | NET DEBT: | 21% | |
| Half-year to 31 Jan | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 | 88.5 | 8.8 | 3.6 | 1.35 |
| 2017 | 98.7 | 10.1 | 4.2 | 1.46 |
| % change | +12 | +14 | +15 | +8 |
| Ex-div: | 29 Mar | |||
| Payment: | 3 May | |||
| *Including intangible assets of £174m, or 88p a share | ||||
