Volution Group (LSE:FAN), the London-listed designer and manufacturer of energy-efficient indoor air quality solutions, reported revenue of £484.8 million for the year ended 31 July, up 15.7% on the prior year's £419.1 million.
Adjusted operating profit rose 20.2% to £112.4 million, lifting the adjusted operating margin to 23.2% from 22.3%, while adjusted basic earnings per share grew 15.4% to 38.2p.
On a statutory basis, operating profit climbed 42.5% to £95.9 million and basic earnings per share increased to 31.5p from 21.0p. Of the 15.7% total revenue growth, organic growth contributed 2.8% at constant currency, inorganic growth added 11.0%, and favourable currency movements accounted for a further 1.9%.
Continental Europe led organic growth at 5.9% at constant currency, with Central Europe up 5.2% and the Nordics up 7.3%, while Australasia grew 3.3% organically.
UK revenue was broadly flat at £176.3 million, up just 0.1%, with growth in the first half reversing into a decline in the second half; the division nonetheless delivered the strongest margin performance, with adjusted operating profit margin up 230 basis points to 28.3%.
Chief executive Ronnie George said the year demonstrated "the value of the geographic and end-market diversity we have built," with strong growth in Continental Europe and good growth in Australasia helping to offset "well documented weaker market conditions in the UK."
Operating cash conversion came in at 107%, ahead of the group's 90% target, with adjusted operating cash flow rising to £122.8 million from £104.5 million. Net debt excluding lease liabilities rose to £184.2 million from £126.0 million, taking leverage to 1.5x adjusted EBITDA from 1.2x, a level the company said preserves flexibility for further acquisitions.
The dividend per share rose 18.5% to 12.8p from 10.8p.
Volution completed the acquisition of AC Industries in Australasia in February, giving the group exposure to gold and copper mining end-markets through ventilation ducting systems.
After the year-end, Volution completed the acquisition of getAir, a Mönchengladbach-based supplier of decentralised residential heat recovery ventilation systems to German and European OEM customers, for €40 million on a cash and debt-free basis, funded from existing debt facilities.
getAir generated unaudited revenue of €13.9 million and adjusted EBITDA of approximately €4.0 million in the twelve months to 30 June, and will sit within Continental Europe alongside Volution's existing InVENTer brand, taking the group's total brand count to 31.
The company said the new financial year has started well, with organic growth continuing alongside a positive contribution from AC Industries, and cited recent orders for ventilation and cooling systems for data centres in Australia as a new growth opportunity.
Volution said that, while challenges in the UK market remain, "most notably in new-build residential," the group's broad exposure across geographies and end-markets leaves it well positioned, with Continental Europe and Australasia expected to be the main drivers of growth in the year ahead.