October 9, 2019 / 7:21 AM / 15 days ago

UPDATE 1-Ventilation products supplier Volution stockpiles ahead of Brexit

(Adds details on Brexit, results)

Oct 9 (Reuters) - Ventilation products supplier Volution Group Plc on Wednesday said it was stocking up on some of its fast-moving items as Britain approaches the deadline for a potential no-deal exit from the European Union.

The company said it did not expect potential tariffs from Brexit to significantly hurt its business, but was increasing inventory in some locations, without divulging more details.

With just over three weeks before the United Kingdom is due to leave the European bloc, the future of Brexit remains deeply uncertain as both London and Brussels position themselves to avoid blame for a delay or a disorderly no-deal Brexit.

Volution Group mainly supplies products for residential and commercial ventilation applications including motors, fans and blowers connected to brand names like Vent-Axia, Manrose and Torin-Sifan. The company said border delays could be a potential source of disruption.

Crawley, Sussex-based Volution said that it did not see a major impact from its primary non-UK supply which comes from China. Beijing and Washington are in the middle of a drawn-out trade spat.

Companies including retailers, drugmakers and supermarket owners expect costly and debilitating delays at Britain’s port of Dover and the Eurotunnel, leading them to stockpile ingredients, raw material, insulin, water and even toilet paper.

Volution on Wednesday also reported a 11.5% rise in annual adjusted pretax profit to 39.9 million pounds ($48.73 million), while revenue rose 14.6% to 235.7 million pounds helped by strong organic growth as its UK market strengthened. The UK accounts for less than half of revenue.

Prime Minister Boris Johnson, who is facing a fresh rebellion in his cabinet according to reports, has promised to take Britain out of the European Union by Oct. 31 come what may, despite parliament passing a law ordering him to seek a delay if he cannot secure a new transition deal. ($1 = 0.8188 pounds) (Reporting by Samantha Machado and Pushkala Aripaka in Bengaluru; Editing by Bernard Orr)

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