(Alliance News) - Volution Group PLC on Thursday said it recorded higher interim revenue and profit due to growth across all three geographic regions and lifted its payout to shareholders.
Shares were down 6.0% at 435.50 pence each on Thursday morning in London.
The firm is a Crawley, West Sussex-based designer and manufacturer of energy-efficient indoor air quality products.
In the six months to January 31, Volution generated a pretax profit of GBP21.4 million, up 51% from GBP14.2 million in the comparative period a year before.
Volution explained this was thanks to lower acquisition-related costs that fell to GBP100,000 from GBP3.5 million.
A 15% rise in adjusted operating profit to GBP31.9 million from GBP27.7 million, also contributed to the higher profit, the company said.
This was on revenue growth of 14% to GBP149.6 million from GBP131.7 million a year ago.
Volution credited this to the contributions from acquisitions and growth in all three of its geographic regions, supported by both volume and price increase. The company also noted that its decision to invest in inventory to ensure component and raw material availability for our production facilities and increase selling early on, also supported its results.
Volution declared an interim dividend of 2.3 pence per share. This represents an increase of 21% from the interim payout of 1.9p a year prior.
Looking ahead, the company said it is well-positioned for the rest of financial 2022.
"Our early and decisive action to invest in additional inventory as well as increase selling prices in response to the unprecedented levels of input cost inflation, has enabled us to deliver strong revenue and profit growth in the first half of the year with operating margins increasing to 21%. The agility and experience of our employees has underpinned good levels of customer service and product availability despite the well-publicised supply chain difficulties across the sector," Chief Executive Ronnie George said.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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Volution Group PLS (FAN)