Leeds-based piping and ventilation systems firm Genuit Group plc — formerly called Polypipe Group — said on Tuesday its revenue for the year ended December 31, 2022, rose 4.7% to £622.2 million.
However, Genuit Group’s profit before tax fell to £45.4 million from £62.9 million in 2021, “impacted by heightened levels of non-underlying items.”
The firm said these non-underlying items increased to £40 million from £34.1 million.
It said these items “were driven by non-cash amortisation and impairment charges of £30.0m (2021: £14.2m) in respect of intangible assets arising from acquisitions since 2015, £3.3m (2021: £6.6m) of costs related to acquisitions and other M&A costs, a product liability claim of £1.0m (2021: £2.6m), one off costs of £1.2m relating to an isolated cyber incident … and restructuring costs of £9.3m (2021: £1.1m).”
Full year 2022 dividend roses to 12.3p from 12.2p.
In its outlook, Genuit said 2023 has started well and has traded in line with expectations “although we expect challenging and uncertain market conditions to continue into 2023 amongst macro-economic uncertainty, with continued lower volumes as seen in the second half of 2022.”
Genuit Group CEO Joe Vorih said: “As I reflect on my first full year as chief executive officer of Genuit, I would like to thank our talented and purpose-driven team for delivering a record level of revenue and profit despite considerable inflation, housing market uncertainty and supply chain disruption.
“As committed, we have improved our pricing processes, begun the simplification of the business to unlock synergies and lower structural costs, and strengthened our sustainability leadership with the adoption of our Science-Based Targets (SBTs) and a reduction in carbon intensity through the year.
“Further, our new Sustainable Solutions for Growth strategy has been well-received by investors and employees alike.
“We have put in place a new business structure and are focusing on climate-driven long-term investment to deliver above-market organic growth and profitability with clear mid-term targets.
“While short-term market instability will likely remain through much of 2023, our self-help measures, the Genuit Business System, and investment for sustainability-driven growth should position us well to deliver against our financial and strategic commitments.”