3rd Feb 2021 09:03
(Alliance News) -Â Volution Group PLC on Wednesday said it is "pleased" with its strong trading performance and also has agreed to buy Nordiska Klimatfabriken AB.
Shares in the ventilation products supplier were up 4.6% at 306.60 pence in London on Wednesday.
Klimatfabriken specialises in the provision of premium low-carbon ventilation equipment for the residential refurbishment market in Sweden, and generated revenue of around SEK12 million - equivalent to around GBP1 million - in 2020.
Volution will pay SEK40 million, or GBP3.5 million, in cash for Klimatfabriken, to be funded from existing cash and its recently announced sustainability linked revolving credit facility.
"As a strategically important acquisition, the additional product portfolio from Klimatfabriken provides new cross-selling opportunities for our existing group companies, and strengthens our market position within the Nordics. Concentrating exclusively on low carbon, energy saving ventilation solutions, they are very well aligned with our strategy of delivering healthy air, sustainably," said Chief Executive Ronnie George.
Volution added that it "continues to be pleased" with its strong trading performance, and expects revenue for the half-year to January 31 to be around 8.5% ahead of the comparative period on a constant currency basis.
"Whilst Covid-19 disruption and the well-publicised issues around imports and exports through UK ports have created some input material supply challenges, our order intake remains strong, and our asset light and flexible operating model continues to be resilient in servicing demand," the firm said.
It added: "The board is very pleased with our growth in the first half of the financial year and that we will have achieved our operating margin target of 20%."
By Lucy Heming;Â [email protected]
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