Volution reports 15% EPS growth despite weak UK housing market

Volution Group, a British ventilation manufacturer, reported a 15% increase in adjusted earnings per share and an 18.5% boost to its dividend, backed by acquisitions and growth in Europe and Australia, despite a weak UK housing market. The company disclosed that its adjusted earnings per share for the fiscal year ending July 31, 2026, was 38.2 pence, marking a 15.4% increase from the previous year's 33.1 pence.

The total dividend rose to 12.8 pence from 10.8 pence, with the final dividend of 8.8 pence awaiting shareholder approval at the Dec. 9 annual meeting. Revenue grew by 15.7% to £484.8 million, driven by the acquisition of AC Industries in Australia, with acquisitions contributing 11% of the growth and currency fluctuations adding 1.9%.

Organic growth, which excludes acquisitions and currency effects, stood at 2.8%. In Continental Europe, organic growth was 5.9%, while in Australasia, it was 3.3%. Despite a challenging market, particularly in the UK, the company's UK operating margin increased by 230 basis points. Adjusted operating profit rose by 20.2% to £112.4 million, and the adjusted operating margin improved to 23.2% from 22.3%.

The company's reported profit before tax was £82.1 million, up from £54.5 million. Operating cash flow reached £122.8 million, an increase from £104.5 million. Net debt, excluding lease liabilities, amounted to £184.2 million at year-end, compared to £126.0 million the prior year. Volution completed the acquisition of getAir in Germany after the year.

Australia marked its first orders for ventilation and cooling systems for data centers. The new year began with organic growth and a contribution from AC Industries. While challenges persist in the UK market, particularly in new-build residential, the board anticipates continued progress.