LONDON (Alliance News) - Ventilation product supplier Volution Group PLC on Thursday reported an increase in revenue for its last financial year, driven by recent acquisitions, but said its pretax loss significantly widened, due to costs associated with those acquisitions and impairments.
The company reported a pretax loss of GBP15.5 million for the year ended July 31, compared with the GBP4.2 million loss it reported the prior year, as it booked a total of GBP29.5 million in exceptional items, costs and impairments, compared with only GBP13.4 million the year before.
Its said GBP7.8 million of that was associated with IPO and acquisition costs, GBP8.6 million to do with amortisation of financing costs, and GBP13.1 million on impairments. Volution listed on the London Main Market in June.
Stripping out movements in operating working capital, investment costs and equipment and intangible assets, Volution posted a pretax profit of GBP14.0 million, up 52% on the prior year's GBP9.2 million profit.
Revenue grew by 18% to GBP120.7 million from GBP102.3 million a year earlier. It said the revenue growth comprised of 3.2% organic revenue growth, with inorganic revenue growth of 14.8% driven by acquisitions.
"The group's trading benefited in the year from the full-year effect of the acquisition of Fresh in Sweden, acquired in October 2012, and from the acquisitions in the year of PAX in Sweden and inVENTer in Germany," Volution said.
The company said it is enjoying strong demand for its ventilation products, especially newer, higher-value added ventilation systems. It said organic growth in the business was helped by an increase in new build residential systems sales in the UK.
"Building on this platform, we will continue to strengthen our position as one of the leading players in the European market for ventilation products, including heat recovery systems," said Chief Executive Ronnie George in a statement.
Volution shares were trading 0.3% lower Thursday morning, at 136.40 pence.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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Volution Group PLS (FAN)