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• Revenue Growth: Up 8.9% at the half year, with organic growth of 4% on a constant currency basis.

• Adjusted Operating Profit: Increased by over 10% to GBP42.6 million.

• Cash Conversion: Achieved 110% cash conversion, exceeding the 90% target.

• Adjusted EPS: Up almost 12%.

• Operating Margin: Increased to 22.7%.

• Return on Invested Capital: 25%, down from 27.5% a year ago due to acquisition dilution.

• Dividend: Interim dividend increased to 3.4p per share, up from 2.8p last year.

• Leverage: Ended the period at 1.5 times pro forma leverage.

• Fantech Acquisition: AUD280 million acquisition, contributing to revenue growth.

• UK Revenue Growth: 7% growth, with strong performance in residential new build.

• Continental Europe Revenue Growth: 2.4% growth, with strong performance in Central Europe.

• Australasia Revenue Growth: Small organic reduction of 1.7%, with strong performance in Australia.

• Low Carbon Revenue: Remained stable at 70.4%.

• Recycled Plastics Initiative: Increased recycled content to 84.6% from 77% last year.

• Warning! GuruFocus has detected 3 Warning Signs with DTRUY.

Release Date: March 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Volution Group PLC (FRA:VO1) reported a group revenue increase of 8.9% for the half year, with organic growth of 4% on a constant currency basis.

• The company completed its largest acquisition to date, Fantech, which has strengthened its leadership position in Australia and New Zealand.

• Adjusted operating profit rose by over 10% to GBP42.6 million, indicating strong financial performance.

• The company has maintained a strong cash conversion rate of 110%, supporting its M&A strategy and maintaining a comfortable balance sheet.

• Volution Group PLC (FRA:VO1) has set ambitious sustainability targets, including a 90% recycled plastics initiative, and has made significant progress in this area.

Negative Points

• The integration of Fantech has resulted in some dilution of the company's low carbon revenue, as Fantech's current low carbon content is lower than the group's average.

• The New Zealand market has been challenging, with a small organic reduction in revenue, contrasting with stronger performance in Australia.

• Currency fluctuations have posed a headwind, with adverse impacts on revenue and profit due to unfavorable exchange rates, particularly in Australia and New Zealand.

• The company's OEM segment experienced a 5.7% decline, although efforts are underway to consolidate and improve this area.

• Despite strong overall performance, the commercial segment in the UK saw a 5.5% decline, although there are positive indicators for future improvement.