REG - Genuit Group PLC - Trading Update

GenuitAnnouncement

28/05/2024 07:00

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RNS Number : 9131P  Genuit Group PLC  28 May 2024

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

 

 

 

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