Change in the air boosts fan maker

SOME parts of the country have been enjoying a mini-heatwave with more promised in the coming days. It makes a refreshing change and should see soaring sales of fans and air conditioning units.

Volution specialises in all manner of ventilation products and brands include Vent-Axia, used by millions of homes across the UK. Midas first recommended the shares in 2014 at £1.55. They have more than doubled since then to £3.71 and City followers believe they have further to run over the next 12 months and beyond.

Ventilation fans have always been a feature of kitchens and bathrooms. Too often, however, units make a lot of noise and do very little. In the past, that was considered just to be a nuisance.

Today, there is an increasing recognition that poor ventilation can cause serious harm and even prove fatal. Last winter, as energy prices soared, consumers were advised to reduce central heating temperatures by one or two degrees.

Struggling families took that advice one stage further, lowering thermostats to just 16 degrees Celsius (61 degrees Fahrenheit) in an effort to cut heating bills.

But cool air retains moisture so those same homes have since suffered a marked increase in mould and condensation, prompting a surge in demand for new, more effective ventilation products. That is where Volution chief executive Ronnie George comes into his own.

With the business since 2008, George took the top job in 2014, since when Volution has honed its reputation as a key player in the provision of clean, healthy air for homes, schools, hospitals and office buildings.

Products have become increasingly sophisticated in recent years. Ensuring that fresh air blows into a building is one thing but, in the depths of winter, that can mean the loss of precious heat.

Volution has devised clever equipment that introduces clean air from outside while keeping rooms warm, so saving costs and reducing energy use. There is a focus on noise reduction too, with the most sophisticated kit barely making a sound.

Government regulation is growing with regard to clean air in social housing and public buildings, and Volution is reaping the benefits.

The group’s financial year runs to July 31 and George revealed last month that earnings would be at the top end of expectations, as housing associations install modern kit in existing homes and contractors select top-of-the-range technology for new properties.

Schools are keen customers too. Stuffy classrooms breed sleepy children so stale air is good for neither health nor attention to lessons.

Under George’s stewardship, Volution has expanded overseas, with customers in Continental

Europe, Australia and New Zealand. Similar dynamics are at work across all these regions, as governments strive to ensure that homes and commercial buildings benefit from clean air, while keeping energy usage to a minimum.

Such forces are helping Volution to make progress, even when economic conditions are challenging and housebuilders are under pressure.

Brokers expect a 6.5 per cent increase in annual sales to £328 million, with profits up 4.5 per cent to £64million and a dividend of 7.7p, compared to 7.3p last year. Further increases in sales, profits and dividends are forecast for several years to come.