28
May 2024
Genuit Group
plc
("Genuit" or "the Company" or
"the Group")
Trading
Update
Genuit, the UK's largest provider of
sustainable water, climate and ventilation solutions for the built
environment, today issues an update on trading for the four months
ended 30 April 2024 ahead of its Annual General Meeting ("AGM"),
which takes place at 13:00hrs (BST) today at 4 Victoria Place,
Holbeck, Leeds LS11 5AE.
Highlights
· Year to
date trading in line with management expectations, with revenue
performance reflecting anticipated market softness
· Continued improvement in underlying operating margin, due to
savings from business simplification and continued deployment of
lean projects under the Genuit Business System (GBS)
· No
change to management's full year earnings expectations
Joe
Vorih, Chief Executive Officer, commented:
"Genuit continued to make encouraging strategic and
operational progress in the first four months of 2024, despite
ongoing market softness, and our expectations for the full year are
unchanged. We are continuing to benefit from our focus on business
simplification, continuous operational improvement and product
innovation which is driving an improved operating margin. Genuit is
in a strong position to benefit from the normalisation of volumes
as markets recover, and we continue to see growth potential in our
markets due to the structural sustainability drivers to which we
are exposed."
Current trading
Group revenue for the four months
ended 30 April 2024 was £183.7m (2023: £201.0m), a year-on-year
reduction of 8.6%.
· Sustainable Building
Solutions (c.41% of Group revenue) -
revenue was 10.6% lower year-on-year, reflecting continued softness
in both new housebuilding and RMI markets, however underlying
operating margin improved slightly.
·
Water Management Solutions (c.28% of Group revenue) - revenue was 12.1% lower
year-on-year, with similar underlying operating margin, as project
revenues were adversely affected by wet weather conditions.
However, the volume and intensity of rainfall in key markets
continues to underline the need for stormwater attenuation
solutions and acts as a structural driver for future
growth.
· Climate Management
Solutions (c.30%* of Group revenue)
- revenue was 2.5% lower year-on-year, as growth in the Nuaire
ventilation business continued to offset weakness in the boiler
market, affecting sales at Adey. The business unit generated a
marginal improvement in operating margin.
The Group completed its business
simplification programme with the closure of the final two out of
six sites, realising £4.8m in cash from freehold sales. Genuit is
on track to deliver the previously announced £15m of annualised
savings from this programme, and will realise further productivity
gains through the ongoing rollout of the GBS.
Notice of Interim Results
The Company will report its interim
results for the six months ending 30 June 2024 on 13 August
2024.
*
The remaining 1% of Group revenue consists of Polypipe Italia,
which is not part of our strategic business
units.
Enquiries:
Joe Vorih, Chief Executive
Officer
Tim Pullen, Chief Financial
Officer
+44 (0) 1138 315315
Headland Consultancy:
|
Andy Rivett-Carnac
|
Telephone: 020 3805 4822
Email:
genuit@headlandconsultancy.com
|
|
Matt Denham
|
|
Chloe Francklin
|
|
About Genuit Group plc
Genuit Group plc is the UK's largest
provider of sustainable water, climate and ventilation products for
the built environment. Genuit's solutions allow customers to
mitigate and adapt to the effects of climate change and meet
evolving sustainability regulations and targets.
The Group is divided into three
Business Units, each of which addresses specific challenges in the
built environment:
· Sustainable Building
Solutions - Providing a range of
construction solutions to reduce the carbon content of the built
environment.
· Water Management
Solutions - Driving climate
adaptation and resilience through integrated surface and drainage
solutions.
·
Climate Management Solutions -
Addressing the drivers for low carbon heating and cooling, and
clean and healthy air ventilation.
Across these divisions, Genuit's
brands are some of the most well-established and innovative in the
industry, including Polypipe, Nuaire and Adey.
The Group primarily serves the UK
and European building and construction markets with a presence in
Italy and the Netherlands and sells to specific niches in the rest
of the world.
END
