Volution Group Plc (LON:FAN) has provided its scheduled pre-close trading update for the financial year ending 31 July 2026.
Volution has delivered another strong year of progress in FY26, and the Board now expects adjusted earnings per share (EPS) of approximately 38.0p, 4% ahead of the current market consensus1. This represents adjusted EPS growth of 15% versus the prior year, building on Volution’s track record of delivering strong and consistent compounding earnings growth (adjusted EPS CAGR c.12% over the 12 years since listing).
We expect to deliver total revenue growth of c.15%, supported by the recent acquisition of AC Industries (ACI) in Australasia, which gives the Company exposure to new and fast-growing end-markets in gold and copper mining. Organic growth is expected to be c.3% constant currency (cc), demonstrating the resilience of Volution’s geographically diversified end-markets and the benefits of its disciplined commercial execution, despite generally challenging market conditions, particularly in the United Kingdom.
· Our strongest organic growth of 5.5%-6% cc is expected to be in Continental Europe, reflecting a sustained recovery in the Nordics, and strong demand for heat recovery solutions in both ClimaRad in the Netherlands and ERI (North Macedonia).
· In Australasia, trading has continued in line with our first half year performance, and we expect to deliver organic growth in the 3.0-3.5% cc range. ACI has performed well in the first six months since acquisition, and we are excited by both the growth outlook and the integration progress to date.
· In the UK, our residential refurbishment activity has been resilient, with social housing performance particularly strong, benefiting from regulations aimed at improving energy performance of buildings and indoor air quality. This has helped offset ongoing weaker residential new build and commercial markets, with full year revenue expected to be broadly flat, against a strong prior year comparator period.
Adjusted operating margin performance has been strong, with all three regions expanding organic operating margins. This reflects the strength of Volution’s operational model, including disciplined price and cost management; improving factory efficiencies; procurement and value engineering product cost initiatives; new product introductions and upselling. Margin performance was particularly strong in the UK, while the addition of ACI was beneficial to Group margins in the second half.
Operating cash conversion2 is expected to be above our targeted level of 90%, reflecting disciplined inventory control and good working capital management across the Group. We expect leverage at 31 July 2026 to be approximately 1.6x on an ex-leases basis, preserving balance sheet flexibility to support continued inorganic investment and disciplined growth initiatives.
Ronnie George, Volution Chief Executive Officer, commented:
“We are pleased to update the market on another strong year of progress for Volution which extends the Group’s track record of delivering strong and consistent compounding earnings growth. Our enhanced geographic and end-market diversity has underpinned another year of organic growth and, across the business, our continued commitment to operational excellence and continuous improvement initiatives has enabled us to deliver strong profit growth.
“I am reminded every day that none of this would have been possible without the commitment, dedication and focus of our valued colleagues. I am immensely grateful for their continued support and the important role they have played in delivering these strong results.”
The full year results for the year ending 31 July 2026 will be announced on Thursday 8 October 2026.
Note:
1. Current market forecasts for the year ending 31 July 2026 (taken from Bloomberg) are
adjusted earnings per share in the range of 35.2p to 37.1p with a consensus of 36.4p.
2. Cash conversion defined as: Adjusted operating cash flow / Adjusted operating profit + amortisation.
