Shares in Volution Group PLC (LSE:FAN) topped the FTSE 350 leaderboard on Thursday after the ventilation products specialist posted full-year results from Volution that were modestly better than expected.
Revenue was up 21% to £419.1 million and operating profit gained 20% to £93.4 million, both slightly ahead of consensus forecasts.
Organic revenue growth was 5.7% at constant currency, led by a 9.5% increase in the UK residential segment.
Statutory profit before tax fell by 3.7% to £54.5 million, due to considerations and costs of acquisitions, with £145.7 million spent, including earn-outs and associated fees, as the group completed its largest purchase to date, the Fantech Group in Australasia, which contributed 16.2% revenue growth.
The dividend was raised by 20% to 10.8p per share, as cash conversion remained strong at 109%, and net leverage stood at 1.2 times.
Chief executive officer Ronnie George said: "Volution's leading market positions and products, the excellent service we provide to our customers, and our structural growth drivers, are enabling us to continue to outperform our end markets."
He added: “The new year has started well, with continuing organic revenue growth complemented by the inorganic revenue benefit from the Fantech acquisition.”
Analysts at Peel Hunt said underlying PBT of £83.9 million compared to a consensus forecast of £83 million.
"Organic revenue growth was 5.7% for the year, with a stronger 2H (+7.4%) supported by regulatory drivers in UK residential and a turnaround in UK commercial. Australia was also robust, and New Zealand performed better in 4Q. Central Europe was mixed, with gains in ClimaRad and ERI partly offset by softer market conditions in some areas."
The shares were blown 8% higher to 52.14p in early trading.