Pre-Close Trading Update

Thursday 24 July 2025

Volution Group plc

Pre-close Trading Update for the Financial Year ending 31 July 2025

Continued good progress; expect adjusted EPS slightly ahead of current market consensus

Volution Group plc ("Volution" or "the Group" or "the Company", LSE: FAN), a leading international designer and manufacturer of energy efficient indoor air quality solutions, provides its scheduled Pre-close Trading Update for the financial year ending 31 July 2025 ("FY25").

Volution has continued to make good progress in FY25 and the Board expects adjusted earnings per share to be slightly ahead of current market consensus (see note 1).

The Board is expecting to deliver organic revenue growth on a constant currency (cc) basis for FY25 of over 5%, up from 4% at the half year. Total Group revenue growth is expected to be over 20%(cc), which includes eight months contribution from Fantech, acquired in December 2024.

On a Regional view:

·    Strong organic growth in the UK has been underpinned by continued growth in residential revenue. Within this our refurbishment demand has remained resilient against a backdrop of generally weak market conditions. Our new residential house building revenue has performed very well, supported by regulations and our leading low carbon product range. Exports to Ireland which are similarly focused on residential new build systems have been strong.  Commercial revenue has returned to growth following a weak first half.

·    Continental European revenue growth is expected to be slightly stronger in the second half than in the first half. Performance in the Nordics has continued broadly in line with the first half, with Swedish refurbishment performing relatively well and weaker demand in the new construction activities. Central Europe has performed strongly in the year, driven by our heat recovery propositions in ClimaRad and ERI, and by VMI in France where we continue to focus on broadening the product range through the introduction of new products from across the Group.

·    In Australasia, second half market conditions and organic revenue performance have continued to remain broadly unchanged from the first half, with a challenging demand picture in New Zealand contrasting with a good performance in Australia. The integration of Fantech into the Group is going very well, with a strong revenue performance in the eight months post-acquisition.

We expect Group adjusted operating margins to be broadly in line with the first half of the year, with operating margins on an organic basis expected to increase modestly, offset by the inorganic dilution from the acquisition of Fantech. Fantech's second half performance has been encouraging, and we are confident in its trajectory to reach the Group's 20% operating margin target in the medium term.

The weakening of overseas currencies, most notably the Australian and New Zealand dollars, has had a negative translation impact in the financial year of approximately £5 million to revenue and just over £1 million to adjusted operating profit.

Operating cash conversion (note 2) is expected to be above our targeted level of 90%, assisted by strong management of inventory and good working capital management across the Group.  The strength of our cash generation gives us good capacity for future investment and earnings accretive acquisitions.

Ronnie George, Volution Chief Executive Officer, commented:

"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 3-5%. The acquisition of Fantech, our largest to date, 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".

"Given our good progress in the second half of the year, the Board now expects adjusted earnings per share to be slightly ahead of current market consensus for FY25."

The full year results for the year ending 31 July 2025 will be announced on Thursday, 9 October 2025.

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Note:

1.       Current market forecasts for the year ending 31 July 2025 (taken from Bloomberg) are:

·    Adjusted earnings per share in the range of 31.6p to 32.5p with a consensus of 32p

2.       Cash conversion defined as: Adjusted operating cash flow / (Adjusted operating profit + amortisation). 

Volution Group plc Legal Entity Identifier: 213800EPT84EQCDHO768.

Note to Editors:

Volution Group plc (LSE: FAN) is a leading international designer and manufacturer of energy efficient indoor air quality solutions.  Volution Group comprises 29 key brands across three regions:

UK: Vent-Axia, Manrose, Diffusion, National Ventilation, Airtech, Breathing Buildings, Torin-Sifan.

Continental Europe: Fresh, PAX, VoltAir, Kair, Air Connection, Rtek, inVENTer, Ventilair, ClimaRad, ERI Corporation, VMI, I-Vent.

Australasia: Simx, Ventair, Manrose, DVS, Fantech, Ideal Air, NCS Acoustics, Air Design, Major Air, Systemaire, Burra Steel.

For more information, please go to: www.volutiongroupplc.com

Cautionary statement regarding forward-looking statements

This document may contain forward-looking statements which are made in good faith and are based on current expectations or beliefs, as well as assumptions about future events. You can sometimes, but not always, identify these statements by the use of a date in the future or such words as "will", "anticipate", "estimate", "expect", "project", "intend", "plan", "should", "may", "assume" and other similar words. By their nature, forward-looking statements are inherently predictive and speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. You should not place undue reliance on these forward-looking statements, which are not a guarantee of future performance and are subject to factors that could cause our actual results to differ materially from those expressed or implied by these statements. The Company undertakes no obligation to update any forward-looking statements contained in this document, whether as a result of new information, future events or otherwise.