Volution Group (FAN) H2 2024 earnings summary

Executive summary

• Celebrated 10 years as a listed company, achieving 8% revenue growth (constant currency), 11.7% adjusted operating profit growth, and 8.5% adjusted EPS growth year-over-year.

• Asset-light model delivered 107% cash conversion in FY24, with a 10-year average of 97%.

• Only one acquisition (DVS Proven Systems) completed in the year; Fantech acquisition signed post-year-end, set to be the largest to date.

• Advanced sustainability goals: 70.9% of revenue from low-carbon products, 78.1% recycled plastics, and first group-wide employee engagement survey.

Financial highlights

• Revenue reached £347.6m, up 8% (constant currency), with adjusted operating profit at £78.0m (+11.7%) and margin up 120bps to 22.5%.

• Adjusted EPS increased to 28.0p (+8.5%), ahead of market expectations.

• Adjusted operating cash flow was £85.8m (+13.4%), with cash conversion at 107%.

• Proposed dividend of 9.0p per share, up 12.5% from prior year.

• Net debt at £31.5m, the lowest in company history.

Outlook and guidance

• Confident in another year of progress; organic growth continues despite tough markets, with the new year starting ahead of last year in both revenue and profit.

• No material organic recovery assumed in guidance; regulatory drivers and easier comparatives expected to support performance.

• Fantech acquisition expected to complete by year-end, providing further growth opportunities and expected to be earnings accretive.