Robust trading from Leeds-based manufacturing firm Genuit as it manages supply chain shortages

Genuit Group, which provides sustainable water and climate management services for the built environment, has issued an update on trading for the four months ended 31 October 2021.

In a statement, the Genuit said: " The group outperformed a market where demand in the group's core segments of UK residential new build, RMI and infrastructure continued to pull hard with group revenue for the four months ended 31 October 2021, 31.1% higher than the equivalent period in 2019 (10.8% on a like-for-like basis) at £207.6m (2019: £158.4m)."

"The group has acted decisively to counter ongoing cost inflation in the second half, and although the necessary pricing actions have been taken, the normal lag effect means that the operating margin for the second half of the year will be lower than H1 2021. Margins are expected to recover in early 2022 as those lag effects work through."

"Our businesses continue to experience supply chain issues and we are working hard to mitigate the impacts on performance, particularly in our climate and ventilation division."

Martin Payne, Chief Executive Officer, commented: "The group traded robustly in the four months to the end of October with continued strong demand from our UK residential new build, RMI and Infrastructure markets.

"We have reacted well in managing challenging supply chain shortages and ongoing cost inflation and I would like to take this opportunity to thank everyone at Genuit for all their hard work and dedication so far this year.

"The medium-term fundamentals of our markets remain strong with sustainability at the heart of everything we do. We are alert to the ongoing macro related market risks such as continuing supply-chain shortages and cost inflation, but with a clear strategy built around strong environmental growth drivers and backed up with legislation, the group is well-positioned for the future".