Volution expects to beat profit forecasts after a strong performance across the board in the first four months of its fiscal year.
The ventilation products group said all three of its geographic regions enjoyed higher earnings in the four months to 30 November, but the strongest performance came from UK residential activities thanks to a jump in renovations.
Group revenues jumped 8 per cent year-on-year in the period to £121million, representing 2.9 per cent organic growth on a constant currency basis.
Upbeat: Volution expects to beat profit forecasts after a strong performance across the board
Volution said regulatory drivers for energy-efficient ventilation solutions boosted its operations, along with solid demand by customers refurbing properties to resolve mould and condensation issues.
On its UK arm, it said: ‘Both public and private refurbishment in the UK has been supported by greater customer awareness of indoor air quality, and resolution of mould and condensation issues.’
Across the group, over two-thirds of revenue stems from the refurbishment market.
The group said in a stock market update: ‘Whilst new build market conditions remain challenging, our refurbishment activities continue to benefit from strong regulatory drivers and consumer focus on eliminating the damaging health impacts of mould and condensation in buildings.
‘Our strong start to the financial year, together with the tailwind from the three acquisitions completed in the calendar year, gives the board confidence in delivering earnings ahead of the current range of market expectations for the financial year.’
Current market forecasts are pointing to adjusted earnings per share of 25.3 to 26.3p for the year to 31 July 2024, against 25.8p the previous year.
Volution shares were up 5.83 per cent or 23.20p to 421.40p on Wednesday.
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