Shares of Volution Group witnessed a significant surge following the company’s announcement of a pretax profit increase during fiscal year 2023. The growth can be attributed to improved revenue from the refurbishment market and the company’s efforts towards geographic diversification. As a result, Volution Group has also decided to raise its dividend payout.
As of 0707 GMT, shares were up by 8.3% or 28.0 pence, reaching 364.6 pence.
Volution Group, a U.K.-listed manufacturer of ventilation equipment, revealed that their pretax profit for the year ending on July 31 reached £48.8 million ($59.2 million). This was a notable increase from £47.2 million in the previous year. Additionally, the company’s revenue grew to £328.0 million from £307.7 million, with 60% now coming from non-U.K. customers.
Despite inflationary pressures, Volution Group managed to increase operating margins through their commitment to maintaining price discipline, implementing robust cost control measures, and improving factory efficiency.
The company stated, “The group’s resilience is underpinned by our strong local brands, our increasingly wide geographic end market diversity, and the greater proportion of our revenue generated from the refurbishment market.”
To acknowledge their positive performance and confidence in the year ahead, Volution Group’s board has declared a dividend payout of 8.0 pence per share, up from 7.3 pence.