Volution Group, a leading ventilation-equipment maker, announced on Thursday that it anticipates reporting adjusted earnings per share for fiscal 2023 at the higher end of market expectations. This impressive performance can be attributed to robust organic growth in the U.K. region, which successfully offset weaker market areas.
According to current market forecasts for the year ending July 31, the estimated adjusted earnings per share range from 23.7 pence to 25.6 pence, with a consensus of 24.4 pence.
The London-listed group is confident that it will achieve an overall organic revenue growth rate of approximately 5% for the year, measured on a constant currency basis. Furthermore, an operating margin of roughly 21% is anticipated.
Excitingly, Volution Group has also reached an agreement to acquire DVS, New Zealand’s leading supplier of home ventilation systems. The initial consideration for this transaction amounts to 18 million New Zealand dollars ($11.3 million), with the potential for an additional NZD9 million based on exceeding future earnings targets. The closing of this acquisition is expected to take place in August.
“The group’s structural growth drivers remain supportive, and despite a somewhat subdued sentiment in general end markets, we continue to witness significant interest in our extensive range of low carbon ventilation solutions,” commented Chief Executive Ronnie George. He further attributed this ongoing interest to growing consumer awareness regarding indoor air quality and the regulatory emphasis on decarbonizing buildings.