Volution Group confident after first half performance
By Josh White
Date: Thursday 12 Mar 2026
(Sharecast News) - Volution Group reported strong growth in the first half of its financial year on Thursday, driven by organic expansion and contributions from acquisitions, as the ventilation specialist said full-year earnings are now expected to reach the top end of market forecasts.
The FTSE 250 designer and manufacturer of energy-efficient indoor air quality products said revenue rose 21.7% to £228.7m in the six months ended 31 January, from £187.8m a year earlier.
It said the increase included 4.2% organic growth at constant currency, a 16.4% contribution from acquisitions and a 1.1% favourable currency impact.
Adjusted operating profit rose 21.1% to £51.6m from £42.6m, leaving the adjusted operating margin broadly stable at 22.6%, compared with 22.7% a year earlier.
Statutory operating profit increased 39.1% to £44m, while profit before tax rose 20.7% to £46.5m on an adjusted basis and 46.5% to £37.6m on a statutory basis.
Adjusted basic earnings per share increased 19% to 18.2p, while statutory EPS climbed 52.6% to 14.5p.
Operating cash flow rose to £51.6m from £47.9m, with operating cash conversion of 98%.
Net debt leverage stood at 1.3 times EBITDA.
The board declared an interim dividend of 4p per share, up 17.6% from 3.4p a year earlier, reflecting confidence in the group's outlook.
Volution said organic growth was volume-led and was achieved across all three regions - the UK, continental Europe and Australasia.
Organic margin expansion of 40 basis points was partly offset by the expected dilution from the integration of Australian ventilation business Fantech, acquired last year.
The group also completed the acquisition of AC Industries on 2 February, expanding its presence in Australasia and providing exposure to ventilation systems used in underground gold and copper mining operations.
Capital expenditure during the period increased to £4.3m, including investment in injection moulding capacity in the UK, metal fabrication capabilities in the Nordics and expansion of its facility in North Macedonia.
Low-carbon products accounted for 72.1% of revenue in the period, supported by growing demand for heat recovery and continuous-running ventilation solutions.
"I am delighted to report another strong performance in the first half of 2026, extending our track record of delivering sustainable double-digit compounding growth," said chief executive Ronnie George.
"All three regions achieved constant currency organic revenue growth in line with or ahead of our 3% to 5% target range, alongside organic operating margin expansion driven by positive sales mix, sourcing and engineering initiatives, and continued operational efficiencies."
George said the company remained encouraged by its near-term outlook despite uncertainty in some markets.
"The short to medium-term outlook for the group remains very encouraging, supported by favourable regulatory tailwinds and market dynamics.
"Whilst end markets remain uncertain, with for example the slower than expected recovery in UK construction volumes, our geographic diversity continues to provide resilience."
Following the strong first-half performance, Volution said it now expected adjusted earnings per share for the full year ending 31 July to come in at the top end of current market forecasts, which range between 35p and 36.5p, according to Bloomberg data.
At 0924 GMT, shares in Volution Group were down 2.08% at 611p.
Reporting by Josh White for Sharecast.com.
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