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magazineFind out why Volution’s shares have fanned higher
Shares in Volution (FAN) have jumped 18%, from 355p to 419p, since the indoor ventilation firm posted strong first results (9 March) and said current trading remains robust.
This builds on the strength the share price has shown since last autumn and has been sustained despite the recent volatility in markets.
Positive trading momentum continued into the half to January 2023, with all three regions - the UK, continental Europe and Australasia - showing growth. Volution highlighted strong UK residential repair, maintenance and improvement (RMI) demand, which is in marked contrast to the rest of the sector.
The designer and manufacturer of energy efficient indoor air quality solutions is bucking a weak construction sector whilst benefiting from environmental and health regulations, driven by the need to decarbonise buildings, drive improvements in air quality and reduce damp and mould in residential homes, which are stoking demand for its products.
Berenberg upgraded its earnings per share estimates for the next three years following the results and believes Volution is ‘very well positioned given its sector-leading pricing power, regulatory tailwinds, an increasing focus on indoor air quality, and its strong balance sheet’.
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