DAVY VIEW

Once again Volution has announced an impressive set of results. The results, which cover the six months to end-January, indicate that the group continues to increase earnings while maintaining a best-in-class operating margin. The prospects for Volution remain promising, especially with Fantech adding a new growth lever. We expect to increase our adjusted EPS forecast by circa 5-6% following the update, which highlights Volution’s continuing positive momentum. The stock’s correction leaves it keenly valued at current levels and the earnings upgrade should be well received.