- Volution Group
- 24 July 2025 10:34:35
Source: Sharecast
The FTSE 250 company now anticipated full-year organic revenue growth of over 5% in constant currency terms, improving from 4% at the half-year stage.
Total revenue growth was forecast to exceed 20%, bolstered by the eight-month contribution from Fantech, the group’s largest acquisition to date, completed in December.
“Volution has delivered good progress during the second half of the year with organic growth expected to be slightly ahead of our target range of 3% to 5%,” said chief executive Ronnie George.
“The acquisition of Fantech is going well, and integration has progressed in line with our expectations.
“I am hugely grateful to all our local teams’ endeavours in supplying leading air quality solutions and providing our customers with ‘healthy air, sustainably’.”
In the UK, strong residential performance supported growth, particularly in new housebuilding, which benefited from low-carbon product demand and favourable regulations.
Refurbishment demand remained resilient despite broader market softness, while commercial revenue returned to growth after a weaker first half. Exports to Ireland were also strong.
In continental Europe, growth strengthened in the second half, with solid performances in central Europe and France, particularly through heat recovery offerings and expanded product ranges.
Volution said that in the Nordics, Swedish refurbishment remained firm, though new construction activity remained subdued.
Australasian market conditions remained mixed, with weaker demand in New Zealand offset by a stronger performance in Australia.
The group said Fantech’s integration was proceeding well, adding that its revenue performance since acquisition was encouraging.
Group adjusted operating margins were expected to be broadly in line with the first half, with organic margin improvement offset by modest dilution from the Fantech acquisition.
The company reaffirmed its confidence in Fantech reaching Volution’s 20% operating margin target over the medium term.
A currency translation impact from weaker Australian and New Zealand dollars reduced full-year revenue by £5m and adjusted operating profit by just over £1m.
Operating cash conversion was expected to exceed Volution’s 90% target, supported by strong inventory and working capital management.
The company said its robust cash generation positioned it well for future investment and earnings-accretive acquisitions.
Volution said it would publish its full-year results on 9 October.
At 1014 BST, shares in Volution Group were up 3.32% at 653p.
Reporting by Josh White for Sharecast.com.