Interactive Brokers shares jump as it secures spot in S&P 500
Investing.com -- Shares of Volution Group plc (LSE:FAN) climbed 10% today following the release of the company’s first-half financial results, which exceeded market expectations.
The firm reported a revenue increase of 8.9% to £187.8 million for the first half of fiscal year 2025, compared to £172.5 million in the same period last year. This growth was attributed to a combination of 4.0% organic growth, 6.6% from acquisitions, and a 1.7% foreign exchange impact.
The adjusted operating profit for Volution rose by 10.4% year-over-year (YoY) to £42.6 million, up from £38.6 million in the first half of fiscal year 2024. The company’s adjusted operating margin also improved to 22.7%, compared to 22.4% in the prior year, driven by operational efficiencies, the introduction of new products, and a focus on cost management.
Investors were further encouraged by the increase in the interim dividend to 3.4p, marking a 21.4% YoY rise from 2.8p in the first half of fiscal year 2024. Although the return on invested capital (ROIC) decreased slightly to 25.0% from 27.7% in fiscal year 2024, this was largely due to the acquisitions of Fantech and ClimaRad. Excluding these impacts, ROIC saw an increase of 1 percentage point.
The company’s management outlook is optimistic, with expectations to deliver full-year 2025 earnings above the consensus estimate of 30.8p, with forecasts indicating an adjusted earnings per share (EPS) of 30.2p.
The results for the first half of fiscal year 2025, which ended on January 31, showed stronger than anticipated organic growth of approximately 4%, in contrast to the 2.5% forecasted at the December trading update. The UK residential market, where Volution holds a leadership position, remains robust, while the UK commercial sector is showing signs of improvement with increased project orders.
The early closure of the Fantech acquisition in Australasia positions Volution as a market leader in the region, despite ongoing challenges in the New Zealand market. The company’s strong balance sheet, with leverage excluding leases at 1.5 times and a 25% ROIC including the Fantech acquisition, provides ample room for future acquisitions.
In response to the company’s performance, RBC commented, "We expect EPS estimates could be revised upwards on the back of this news, with management expecting full year earnings to be ahead of consensus, currently at 30.3p to 31.3p."
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