Adjusted Profit is up 10% while shareholders will see Dividend Growth of 9%.
Companies: Volution Group
Volution (LON: FAN) has announced its full-year results for the 12 months to July 31st today, which shows Revenue Growth of 19.8% to £181m, while Adjusted Operating Profit is up 9.6% to £35.6m.
On a reported basis, PBT was 17.9%, down 2.5% on FY16, partly due to the Group's new acquisitions of Breathing Buildings and VoltAir System, as well as "increased amortisation of acquired intangible assets". On an adjusted basis PBT was up 10% to £35m.
As a result, a full-year dividend of 4.15p per share will be issued, up 9.2% on last year.
Shares in FAN were up 2% today off the back of the results.
Management said the Group's acquisitions of Breathing Buildings and VoltAir System in the year enhance the Group's commercial and residential operations respectively.
Volution CEO Ronnie George commented on the Group's year, saying:
"We continued our successful acquisition strategy completing two acquisitions in the year, both of which extended our market reach in existing geographies and we also delivered good organic growth. These strong results translated into excellent operational cash generation with our conversion rate exceeding the already high rate in the prior year."
Corporate broker Liberum put out a note regarding the Group's performance, reiterating their Buy stance on the stock:
"We have left our estimates unchanged for the forecast years, but the outlook statement is quite bright, with management pointing out that organic growth is running at a faster level so far this year than was achieved in 2017. We would expect consensus estimates to increase later in the year if this good start to the year persists."
They also said they see "over 20% TSR upside to our maintained target price of 233p."
The Group has a market cap of £393m and trades at a PE ratio of 14x versus the industry median of 17x. The reported FY17 Revenue of £181m is forecast to grow to £200m and £207m in FY18 and FY19 respectively, while the reported Operating Profit this year of £35.6m is forecast to reach £37.5m and £39m in the next two financial years.