Half Year 2025 Volution Group PLC Earnings Call Transcript
Key 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.
- 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.
Welcome to Volution Group half-year results. We're delighted to be here this this morning and great to see so many familiar faces. Format's going to be largely similar to what we've done in the past, so quick overview. In actual fact, I'll spend a little bit less time on the overview. I'm looking forward to giving Andy a little bit more time to talk about the financial results and then I'll come back on the business review summary and outlook and then Q&A.
If we get this right, we're looking to spend about half our time taking you through the results. We think they're reasonably self-explanatory and then experience from last time, we had quite a lot of Q&A, a lot of interest around -- in many respects, what happens next, so we'll try and reserve a little bit more time for Q&A.
Key takeaways here. Look, our group revenue is up 8.9% at the half year and good organic growth of 4% on a constant currency basis. Adjusted operating profit is up just over 10% to GBP42.6 million. Of course, we acquired
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