Shares in Volution Group PLC (LSE:FAN) climbed over 5% after the company reported strong trading in the second half and predicted that full-year profits would come in at the higher end of analysts' expectations.
Revenue grew by 17.6% at constant currency in the third quarter, including an 8.8% rise in organic growth, the maker of ventilation equipment said in a trading update.
The FTSE 250 company described UK residential revenue as particularly encouraging, with growth rates accelerating in the second half, boosted by good growth in new build residential systems and strong public demand for repair, maintenance and improvement (RMI).
Volution said it has managed the challenges caused by supply chain constraints by keeping higher levels of inventory and broadening its range of supply options.
With regards to inflationary pressures, the company said it has maintained operating margins through modest price increases in the second half.
“Whilst the macro-economic environment is uncertain, our order books and activity levels, coupled with the regulatory and customer focus on improving energy efficiency in buildings, should continue to support demand,” it said.
“We therefore expect our earnings to be towards the upper end of market expectations for the current financial year.”
Shares were up 5.06% at 373.50p in midmorning trade, having risen as high as 383p earlier.