Volution Group plc Annual Report 2021
Healthy air, sustainably
Our energy efficient indoor air quality solutions are part of the global green economy
Strategic Report
- At a Glance
- 2021 Highlights
- Delivering Sustainable Growth
- Our Purpose
- Our Values
- Our Strategy
- Our Investment Case
- Our Business Model
- Chairman's Statement
- Chief Executive Officer's Review
- ClimaRad Acquisition
- Global Megatrends
- Regulatory Shifts
- Innovation in our DNA
- Stakeholder Engagement
- Sustainability
- Finance Review
- Key Performance Indicators
- Risk Management and Principal Risks
- Non-FinancialInformation Statement
Governance Report
- Chairman's Introduction
- Board of Directors
- Governance Framework
- 2021 Board Activities
- Governance Report
- Nomination Committee Report
- Audit Committee Report
- Directors' Remuneration Report
- Directors' Report
- Directors' Responsibility Statement
Financial Statements
121 Independent Auditor's Report
130 Consolidated Statement of Comprehensive Income
131 Consolidated Statement
of Financial Position
132 Consolidated Statement
of Changes in Equity
133 Consolidated Statement of Cash Flows
134 Notes to the Consolidated Financial Statements
- Parent Company Statement of Financial Position
- Parent Company Statement of Changes in Equity
- Parent Company Statement of Cash Flows
- Notes to the Parent Company Financial Statements
Additional Information
183 Glossary of Technical Terms
184 Shareholder Information
At a Glance
We are market leaders in residential and commercial ventilation solutions
Our regional coverage
United Kingdom | Continental Europe | Australasia |
Report Strategic
• New Build Residential, RMI (Public and | • Nordics, Germany, Belgium | • | New Zealand and Australia |
Private), Commercial, Export and OEM | and the Netherlands | • | New Build Residential and RMI |
- Bosnia and Herzegovina (production facilities only)
- New Build Residential, RMI, Commercial and OEM
- of Volution Group revenue by region
United Kingdom 49.9% | Continental Europe 35.0% | Australasia 15.1% | ||||||||||||||||||||||
£135.9m | £95.5m | £41.2m | ||||||||||||||||||||||
Annual Report 2021 Volution Group plc | 1 |
with significant achievement adjusted operating
target and delivering agenda.
Operational highlights
growth up £56.0 million to £272.6 million 2019: £235.7 million) including organic (20.5% at cc) and inorganic growth from the
in the year of 3.8% (3.9% at cc)
20% adjusted operating margin target six months with adjusted operating margin of 20.9%
2019: 17.8%) despite ongoing supply chain and inflationary pressures faced by the Group
profit before tax £30.0 million (2020: £14.6 million)
remains highly cash generative with operating up 31.2% to £56.9 million (2020: £43.4 million),
cash conversion of 97%, as a result of our asset model
.2 million invested in three acquisitions in the Netherlands, and Finland further enhancing our product range and
-carbon credentials
debt (excluding lease liabilities) stable at £53.8 million (2020: £51.1 million) with leverage (measured as net debt excluding lease liabilities divided by adjusted EBITDA) ending the year at 0.9x (2020: 1.3x)
- Adjusted earnings per share of 21.0 pence and delivering a compounded annual growth rate of 13.2% since IPO in 2014
-
Dividends resumed, with total dividend for the year of
6.3 pence per share reflecting strong profitability, free cash generation and confidence in our business model to deliver continued growth
- The safety and wellbeing of our employees through the ongoing Covid-19 pandemic remains our number one priority with some of our regions still experiencing local 'lockdowns'
- Three acquisitions completed in the year, ClimaRad in the Netherlands, Klimatfabriken in Sweden, and Rtek in Finland with a fourth transaction to acquire ERI Corporation signed during the year with completion in early FY22
-
Relocated our principal factory in Sweden to a more energy efficient and well-invested facility in Växjö with considerable capacity headroom to support our ambitions for growth
in the region - Continued investment in the most innovative and energy efficient ventilation solutions for our markets to meet the growing needs and awareness of how ventilation in buildings is critical to health and the reduction of Covid-19 transmission risks
Healthy air, sustainably
- Awarded the LSE Green Economy Mark - our products save energy, reduce carbon emissions and help to build healthy, sustainable homes and buildings
- Our business is committed to a net zero roadmap and is carbon neutral for scope 1 and 2 emissions this year
- Good progress against our key sustainability targets with 59.7% of plastic used in our own manufacturing facilities from recycled sources and 62.1% of our revenue from low-carbon, energy saving products
- £150 million Sustainability Linked Revolving Credit Facility established, further underlining our commitment to delivery of ESG targets
2 Volution Group plc Annual Report 2021
Revenue £m
£272.6m
2021 | 272.6 |
2020 | 216.6 |
2019 | 235.7 |
2018 | 205.7 |
2017 | 185.1 |
Adjusted operating profit and adjusted operating profit margin £m (% of revenue)
£56.9m (20.9%)
2021 | 56.9 | 20.9% | |||
2020 | 33.7 | 15.6% | |||
2019 | 42.1 | 17.8% | |||
2018 | 37.1 | 18.0% | |||
2017 | 35.6 | 19.3% |
Report Strategic
Reported profit before tax £m | Adjusted operating cash flow £m | |||
£30.0m | £56.9m | |||
2021 | 30.0 | 2021 | 56.9 | |
2020 | 14.6 | 2020 | 43.4 | |
2019 | 23.1 | 2019 | 36.9 | |
2018 | 16.7 | 2018 | 34.4 | |
2017 | 17.9 | 2017 | 35.9 |
Net debt £m
£79.2m
202153.8279.21
202051.1274.21
2019 | 74.6 |
2018 | 77.2 |
2017 | 37.0 |
- IFRS 16 basis.
- Excluding lease liabilities.
Adjusted EPS pence
21.0p
2021 | 21.0 |
2020 | 12.1 |
2019 | 16.0 |
2018 | 14.5 |
2017 | 13.6 |
Reported EPS pence | Dividend per share pence | |||
10.5p | 6.30p | |||
10.5 | ||||
2021 | 2021 | 6.30 | ||
2020 | 4.9 | 2020 | 0 | |
2019 | 9.2 | 2019 | 4.90 | |
2018 | 6.7 | 2018 | 4.44 | |
2017 | 7.0 | 2017 | 4.15 |
The Group uses some alternative performance measures to track and assess the underlying performance of the business. These measures include adjusted operating profit, adjusted profit before tax, adjusted EPS, adjusted operating cash flow and net debt. For a definition of all the adjusted and non-GAAP measures, please see the glossary of terms in note 35. A reconciliation to reported measures is set out in note 2.
Key performance indicators pages 54 to 57
Annual Report 2021 Volution Group plc | 3 |
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Volution Group plc published this content on 18 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 October 2021 13:33:06 UTC.