Volution revenue rises 15.7% as acquisitions drive growth

Ventilation manufacturer Volution Group has reported revenue of £484.8m for the year ended 31 July 2026, an increase of 15.7%, as acquisitions provided the largest contribution to growth and operating margins improved.

The company’s 8 October results show adjusted operating profit rising 20.2% to £112.4m, from £93.5m a year earlier. Its adjusted operating margin increased from 22.3% to 23.2%, while statutory operating profit climbed from £67.3m to £95.9m. The latter is a distinct accounting measure and should not be substituted for the adjusted figure.

Revenue rose from £419.1m to £484.8m. Volution attributed 11.0 percentage points of the increase to acquisitions, 2.8% to organic growth at constant currency and 1.9 percentage points to favourable foreign-exchange movements. That breakdown is more informative than the headline growth rate when assessing underlying demand.

The company designs and manufactures ventilation and indoor air quality products used in residential and commercial buildings across the UK, continental Europe and Australasia. The contribution from acquired operations reflects the expansion of that footprint as much as growth from existing customers.

Organic revenue increased 5.9% at constant currency in continental Europe and 3.3% in Australasia. By comparison, the UK recorded growth of just 0.1%, illustrating the uneven conditions across Volution’s main markets. Management described the British market as challenging even as group-level results benefited from international operations.

The acquisition of AC Industries in Australasia broadened the company’s activities into additional applications, including ventilation associated with mining. The full-year contribution from Fantech also supported sales, while the acquisition of German ventilation specialist getAir was completed after the financial year ended and should not be counted as part of the reported period’s acquisition revenue.

Profitability improved alongside portfolio expansion. Volution reported statutory profit before tax of £82.1m, against £54.5m in 2025, while adjusted profit before tax reached £99.2m. These figures differ because the group excludes specified items from alternative performance measures, which it defines in its financial statements.

Statutory basic earnings per share increased from 21.0p to 31.5p. Adjusted basic earnings per share rose 15.4% to 38.2p, while the proposed dividend increased 18.5% to 12.8p per share. Comparing statutory and adjusted earnings directly without identifying the basis would risk overstating or obscuring performance.

Cash generation provides another perspective on the year’s results. The company reported adjusted operating cash flow of £122.8m and adjusted operating cash conversion of 107%, compared with 109% a year earlier. Capital expenditure was £8.1m, broadly similar to £8.4m in the previous period.

Volution’s return on invested capital increased from 25.2% to 25.4%, despite further acquisitions. The measure is particularly relevant to a group pursuing portfolio expansion, because paying for growth only creates lasting value if acquired operations generate adequate returns after integration and ongoing investment.

Demand is influenced by building activity, refurbishment and regulations concerning energy efficiency and indoor air quality. Stronger ventilation requirements can support equipment sales, but their commercial effects vary by market and do not remove exposure to construction cycles, financing conditions and customer budgets.

The group also identified geopolitical disruption and longer supply routes as sources of component delays during the year. Such pressures can affect inventory and production planning even where customer demand remains healthy, making procurement and operational efficiency important to protecting margins.

Volution expects to pursue further organic growth and acquisitions. Recent orders connected with Australian data centres point to another application for its products, although the company has not quantified that opportunity in the headline results. The next trading periods will show whether improvements in existing businesses can make a larger contribution alongside continuing portfolio expansion. The contrast between near-flat UK organic sales and stronger overseas growth also provides a useful benchmark for future performance by region.