Genuit Group plc Trading Update __________________________________________________________________________________
16 November 2021
Genuit Group plc (“Genuit”, the “Company” or the “Group”), a leading provider of sustainable water and climate management solutions for the built environment, today issues an update on trading for the four months ended 31 October 2021.
Trading update for four months ended 31 October 2021 meets expectations
· 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.
· The Group remains highly cash generative and at 31 October 2021 net debt was £157.4m.
· The Board expects profit to be in the range of analyst expectations*.
We continue to make strong progress against the ESG targets we have communicated previously. In September, Genuit Group signed a commitment to the Business Ambition for 1.5°C and is aligning its carbon reduction targets with the most ambitious aim of the Paris Climate Agreement. As part of this we have also signed up to Science Based Targets with interim milestones.
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”.
Full Year Results
Full year results for year ending 31 December 2021 will be announced on 15 March 2022.
* Genuit compiled analyst consensus forecast range for 2021 shows EBIT of £92.5 – £95.9 million.
Genuit +44 (0) 1138 315380
Martin Payne, Chief Executive Officer
Paul James, Chief Financial Officer
Brunswick +44 (0) 2074 045 959
Notes to Editors:
Genuit Group plc (“Genuit”, the “Company” 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, sustainable underfloor heating solutions and energy efficiency solutions in water-based heating systems in the UK.
The Group operates from 28 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, Ireland and the Middle East, with sales to specific niches in the rest of the world.
Genuit Group plc changed its name from Polypipe Group plc on 6 April 2021. The Group was established in 1980 and has been listed on the premium segment of the London Stock Exchange since 2014.