Volution Group PLC on Thursday hailed ‘ever tightening regulations’ focused on lowering carbon emissions as boosting demand for its business, as it declared a higher payout after annual profit rose.

For the year ended July 31, the West Sussex-based designer and manufacturer of energy-efficient indoor air quality solutions reported a pretax profit of £48.8 million, up 3.4% from £47.2 million a year prior. Revenue climbed 6.6% to £328.0 million from £307.7 million.

Cost of sales increased 5.3% to £169.1 million from £160.6 million, while administrative expenses increased 3.5% to £100.1 million from £96.7 million.

Noting ‘ever tightening regulations’ as a driver for demand, the company said: ‘Demand in the refurbishment market has been supportive during the year, particularly in the UK where we saw demand in public refurbishment, maintenance and improvement market benefiting from the heightened awareness of health risks associated with mould and condensation. Private RMI proved very resilient.’

Volution declared a final dividend of 5.5 pence per share, up from 5.0p a year prior. This brings the total dividend to 8.0p which is 9.6% higher than 7.3p a year prior.

Looking ahead, Chief Executive Officer Ronnie George said: ‘Whilst we are mindful of the impact of higher interest rates on consumer confidence and new build construction, the regulatory changes in our local markets continue to drive demand for our innovative and well-positioned low carbon product technologies. In addition, our three new acquisitions completed in the last six months; our ongoing focus on operational excellence; and the depth of experience and commitment across our local teams provides resilience and gives us confidence of making further progress in the year ahead.’

Volution shares rose 6.4% to 358.20 pence each on Thursday morning in London.

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