FTSE 250 shares round-up: ‘remarkable’ margins and a mid-cap debut

The mid-cap debut of Greenland minerals firm Amaroq Ltd (LSE:AMRQ) and more strong results from compounder Volution Group (LSE:FAN) were among the highlights in a tough day for the FTSE 250 index.

The benchmark traded below 24,000 for the first time since mid-September, with ex-dividend pressure on Taylor Wimpey (LSE:TW.) and a downbeat reaction to a UNITE Group (LSE:UTG) trading update among the factors in the decline.

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Ventilation products firm Volution Group rose 7p to 659p but remains below February’s pre-war record level of 712p and the targets of City firms Berenberg and Jefferies at 880p and 850p.

The shares were 562p in mid-March before a recovery as recent trading updates have shown the business is navigating geopolitical turmoil and a tougher UK residential market.

This was shown in today’s annual results after revenues rose 15.7% to £484.8 million and pre-tax profits lifted 18.2% to £99.2 million. The company said plans for a 8.8p a share dividend on 15 December showed its confidence as it lifted the total for the year by 18.5% to 12.8p.

The year included February’s £75.8 million acquisition of Australia’s AC Industries, which marked Volution’s strategic entry into underground mining ventilation.

The business, whose high-efficiency ducting systems help copper and gold mining customers reduce their energy cost, performed well in its first six months of ownership.

Australasia accounted for 32.6% of group revenues in 2025-26 and is expected to be an important driver of growth, including through its recent orders for ventilation and cooling fans for data centres.

The UK division held revenues at £176.1 million, but Berenberg said the margin performance had been “remarkable” after an increase of 230 basis points to 28.3%.

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This drove an 8.7% rise in UK operating profit to £49.9 million, despite a challenging demand backdrop, material cost inflation and supply chain disruption. Resilience in residential refits offset weaker new build demand and a “disappointing” result in commercial ventilation.

Chief executive Ronnie George, who joined Volution in 2008, has overseen compound earnings per share growth of 13% in the 12 years since he led the company on to the stock market.

This record of organic growth, acquisitions and margin expansion includes a rise of 15.4% to 38.2p in today’s 2025-26 results.

George said that decarbonisation and electrification, health and air quality and overheating in buildings were “all clear and strengthening” long-term growth tailwinds.

City firm Jefferies said Volution was successfully identifying and exploiting new growth vectors and that the first data centre-related contract in Australia should capture the market’s attention.

The bank added: “The residential UK market has toughened, but the results and commentary indicate that Volution is increasingly able to offset headwinds like this, especially by pushing harder into new markets.”

The FTSE 250 inclusion of Amaroq, which moved from AIM to the main market at the end of July, was met with a lacklustre response after an opening day fall of 4p to 119p. The stock has rallied from 81p at the start of July but had been as high as 149p in January.

The company’s cornerstone asset is its 100%-owned high-grade Nalunaq gold mine in southern Greenland, which entered production in 2024.

Cash flow generated from the project enables Amaroq to continue with the exploration and development of strategic minerals in support of the global energy transition. Its portfolio includes opportunities in gold, copper, nickel and rare earth elements across South Greenland as well as zinc, lead, silver, germanium and gallium at its West Greenland hub.

The company said earlier this week that Nalunaq had achieved its quarterly production goal of 12,000 ounces (koz) earlier than planned. Its full-year guidance for 25-35 koz is unchanged.

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Third-quarter results due on 12 November will show whether this higher production has been accompanied by lower unit costs and therefore stronger cash generation.

Panmure Liberum, which has a price target of 161p, said that FTSE 250 inclusion should broaden the company’s institutional reach, index visibility and liquidity at a time when Nalunaq’s ramp-up is gaining momentum.

And in light of last month’s US-Denmark security deal, the house broker said Amaroq was in pole position to benefit from renewed interest in Greenland and its critical minerals.

It pointed out recently that Greenland hosts 25 of the European Union’s 34 critical raw materials yet has just two operating mines. “The constraint has never been geology, rather it’s financing/logistics, and Amaroq now has a track record here.

“We estimate more than $2 billion of mining investment could be made in Greenland over the next five years, with 20 plus companies exploring and at least seven advanced/operating projects.”