Genuit Group PLC Trading Update (9471D)
25 October 2022 - 5:00PM
UK Regulatory
TIDMGEN
RNS Number : 9471D
Genuit Group PLC
25 October 2022
Genuit Group plc
Trading Update
__________________________________________________________________________________
25 October 2022
Genuit Group plc ("Genuit", the "Company" or the "Group"), a
leading provider of sustainable water, climate and ventilation
products for the built environment, today issues an update on
trading for the nine months ended 30 September 2022.
Group revenue for the nine months ended 30 September 2022 was
GBP472 million (2021: GBP451 million) representing growth of 4.7%
on a strong comparative period. On a like-for-like basis, Group
revenue growth was 3.0%.
-- For the nine months, Residential sales were GBP297 million up
6.2% (4.8% on a like-for-like basis) on the prior year and
Commercial & Infrastructure sales were GBP176 million up 2.3%
(0.4% on a like-for-like basis) over the same period.
-- Against a backdrop of increased macro-economic and political
uncertainty, the Group has experienced tougher trading conditions
over recent weeks and has not seen the normal seasonal uplift in
volumes in the latter part of Q3. This has impacted most parts of
the business, and in particular RMI, although the areas that are
driven by the need for energy efficiency are trading well.
-- The Group continues to proactively counter ongoing cost
inflation through robust price leadership and a successful
September price increase has been implemented in parts of our
business to deal with these continued pressures. Measures,
including a planned restructuring, are also actively being taken to
improve the efficiency of our operations and these will deliver
approximately GBP8 million of savings on an annualised basis.
-- Supply chain issues persist and the constraint in the supply
of semiconductors and printed circuit boards in the upstream boiler
market remain, inhibiting customer demand. We remain vigilant that
further challenges to our supply chain such as the constraint in
the supply of blowers to our Climate & Ventilation division are
proactively mitigated to the greatest possible extent.
-- The Group remains highly cash generative and net debt has
reduced since the half year. We anticipate that capital expenditure
for the full year will be approximately GBP40 million and the Group
expects to report pre-IFRS16 net debt to EBITDA of circa 1.2x at
the year end, reduced from 1.5x at 30 June 2022.
-- As a consequence of the uncertainty impacting trading in the
latter part of Q3, the Board now expects profit for the year to be
at the lower end of analyst expectations*.
Joe Vorih, Chief Executive Officer, commented:
"The overall trading environment remains challenging, and we are
seeing some slowing in line with pressures on the sector. RMI is
particularly impacted, though some bright spots remain, including
conversion to renewable heating and improvement to existing heating
system efficiency. The Group is well positioned to weather this
uncertainty, with variable manufacturing capacity and we have
already undertaken significant self-help measures with planned
improvements to our cost structure. The medium- and long-term
fundamentals of the Group are strong, as legislative growth
drivers, customer commitments to Net Zero, and the climate-driven
need for low-carbon heating solutions, improved building
ventilation, and resilient stormwater management all play to
Genuit's strengths."
Capital Markets Day
The Group will hold an in-person Capital Markets Day for
investors and analysts on Thursday 10 November 2022 at the Group's
Adey business in Gloucestershire.
Full Year Results
Full year results for the year ending 31 December 2022 will be
announced on 14 March 2023.
* Genuit compiled analyst consensus forecast range for 2022
shows EBIT of GBP96.8 - GBP109.0 million.
Enquiries:
Genuit +44 (0) 113 831 5315
Joe Vorih, Chief Executive Officer
Paul James, Chief Financial Officer
Brunswick +44 (0) 2074 045 959
Nina Coad
Tom Piggot
Notes to Editors:
Genuit Group plc ("Genuit" or the "Group"), a leading provider
of sustainable water and climate management solutions for the built
environment, is the largest manufacturer in the UK, and among the
ten largest manufacturers in Europe, of piping systems for the
residential, commercial, civils and infrastructure sectors by
revenue. It is also a leading designer and manufacturer of energy
efficient ventilation systems in the UK.
The Group operates from 30 facilities in total and manufactures
the UK's widest range of solutions for heating, plumbing, drainage
and ventilation. The Group primarily targets the UK and European
building and construction markets with a presence in Italy, the
Netherlands and the Middle East and sales to specific niches in the
rest of the world.
Genuit Group plc changed its corporate name from Polypipe Group
plc on 6 April 2021. The Group was established in 1980 and has been
listed on the London Stock Exchange since 2014.
END
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