Genuit Group Updates on Falling Revenues

GENUIT GROUP plc reports revenue fell to £471.7 million for the 10 months ending on 31 October 2024 – 7.1% lower than the prior year on a like-for-like basis.

The company’s Water Management Solutions division (including the Polypipe, Polydeck brands and recently acquired SkyGarden) was hard hit. Revenues were down by 4.9% on a like-for-like basis in the 4 months ending October 2024. Year to date revenues were £137.7m, representing a year-on-year reduction of 7.4%. This was as a result of several project delays in an uncertain business environment, the business says.

In the Sustainable Building Solutions division (including the Manthorpe brand), sales were down 2% in the 4 months ended October 2024. Year to date revenues of £192.3 million show a reduction of 8.4%, as a result of subdued new housebuilding and RMI activity.

However, the business unit has made strong progress in winning new business, following the withdrawal of a competitor from the UK market, with additional revenues expected in 2025.

Revenues in the Climate Management Solutions division were up 1.7% year on year for the four months period to October 2024. This performance was driven by strong demand in the residential sector of brand Nuaire’s ventilation business and an improvement in sales at Adey. Year to date revenues are £135.4m, a year-on-year reduction of 2.6%. Residential ventilation strength was offset by subdued commercial ventilation and boiler sales, the company says.

Subdued Market

Market conditions are expected to remain subdued for the remainder of 2024 and into 2025. The Group is assessing the impact of the recently announced changes to employer costs. The increases in employer National Insurance contributions and the National Minimum Wage will add c.£5m to the Group’s cost base in 2025. The Group will seek to mitigate this through productivity and supply chain improvements where possible, along with balanced price management.

Genuit says its deployment of the Genuit Business System is making good progress in achieving productivity improvements that help mitigate the impact of lower volumes and increase operational gearing of the Group to drive profitability as volumes return to more normal levels.

The Group says it is encouraged by the UK Government’s commitment to increasing new housebuilding and to built environment decarbonisation. The Group says it remains well positioned to capitalise on these structural drivers. The Board expects full year underlying operating profit to be broadly in-line with expectations of c. £92m.

Joe Vorih, Chief Executive Officer, said: “Genuit has delivered a resilient performance in the face of market conditions that have remained subdued. Against this backdrop, we have made good progress with our strategy and I am delighted the Genuit Business System has continued to build momentum. Our focus on efficiency and productivity continues to support strong margins despite lower volumes.

“The economic and social imperative to increase levels of construction and housebuilding in the UK has never been stronger. At the same time, the need to decarbonise the built environment and adapt to climate change remains clear. I am confident that Genuit’s portfolio of climate friendly, labour saving, and energy efficient solutions will play a key role in supporting sustainable growth in the coming years.”

>> Read more about Genuit Group in the news