DAVY VIEW

There remains much to like about Volution as its track record becomes increasingly embedded (earnings growth now averaging 12% per annum over the last five years). Recent results confirm a business characterised by solid organic growth, invariably supplemented by strategically astute acquisitions, robust operating margins and impressive cash generation. Even more pertinently, the Volution product set – focused on air quality – is of ever-increasing relevance and offers a runway for further success. Added to this is a much more palatable rating, which admittedly acknowledges the immediate possible earnings risk as economic headwinds amplify. We view any further breakdown – most likely due to exogeneous circumstances – as an investment opportunity.