Genuit Group: Yorkshire manufacturer delivers revenue and profit growth
Genuit Group, the manufacturer of plastic piping systems, has revealed that it achieved revenue and profit growth over the last half year despite facing challenging market conditions.
The Leeds-headquartered group reported half year revenue of £297.8m, an increase of 9.3 per cent year-on-year on a reported basis and 6.1 per cent on a like-for-like basis.
Underlying operating profit of £44.6m, was an improvement year-on-year of 2.3 per cent, despite the increased costs associated with the National Insurance and National Minimum Wage increases.
Joe Vorih, chief executive, said the group had returned to top line growth in the first half of this year, outperforming a market that “continues to be characterised by weak confidence and broadly flat volumes”.
He added: "In this context, we are pleased to have delivered growth in key segments including ventilation and blue-green roofs, as well as targeted market share gains.
“As we look forward into the second half, we anticipate these challenging market conditions to persist, although with margins benefiting from price actions, cost efficiency and productivity actions already underway, supported by the Genuit Business System.
"We expect underlying operating profit for the year to be in-line with consensus,’’ he added.
“We are confident in our ability to continue to outperform our markets, with supportive regulatory-driven tailwinds emerging, including the Future Homes Standard, where our breadth of offering is supporting our customers' development, and the AMP8 (the next five-year regulatory cycle for the UK water industry) spending cycle, with its focus on stormwater management solutions."
The group is divided into three Business Units; Climate Management Solutions, Water Management Solutions and Sustainable Building Solutions.
Genuit 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.
In a statement, Genuit said its product portfolio is expected to benefit from emerging regulatory changes and sustainability-related growth drivers.
These include the introduction of Awaab's Law later in 2025, which is legislation designed to ensure social landlords promptly address hazards like damp and mould in their properties. This is expected to drive continued demand in residential ventilation for climate management solutions, Genuit said.
The statement added: “The Future Homes Standard will be clarified later in 2025 and implemented over the course of one to two years.
"Major housebuilders are already deploying solutions ahead of formal introduction and the group's breadth of offering is increasing the addressable market for the group.”
It added: “Sky Garden (which specialises in green roofing) is benefiting from growth in the blue-green roof market due to increased requirements for stormwater management, re-greening and biodiversity in developments.”