Genuit shares rise amid AGM trading update

Shares of Leeds-based piping and ventilation systems firm Genuit Group plc — formerly called Polypipe Group — rose as much as 14% on Thursday after it said it expects that full-year operating profit will be “slightly ahead of current consensus for the year.”

EBIT consensus as compiled by Genuit Group plc is £84 million with a range of £70 million to £96 million.

The firm said it is on track to deliver the annualised savings previously announced.

Genuit Group, the UK’s largest provider of sustainable water, climate and ventilation solutions for the built environment, issued an update on trading for the four months ended April 30, 2023, ahead of its Annual General Meeting.

The Leeds firm said: “Group revenue for the four months ended 30 April 2023 was £201.0m (2022: £209.0m), 3.8% lower than in 2022.

“On a like-for-like basis, group revenue was 4.7% lower, reflecting a market-driven year-on-year volume decline of circa 11% offset by the group’s focus on managing inflationary pressures through pricing.

“In line with the group’s strategy to drive margin improvement, the group has taken a number of actions during the period to simplify the business and address its cost base.

“These include the continuing roll out of the Genuit Business System into two sites across separate businesses, which began last November, with a third to be launched this year.

“The group is on track to deliver the annualised savings previously announced and sees further opportunity to simplify the business.

“These management actions have driven the group’s performance so far this year and give the board confidence of delivering operating profit slightly above the current consensus for the full year.”

Genuit Group CEO Joe Vorih said: “Management has made real inroads in implementing the strategic priorities we set out at the time of our capital markets event last November; including simplification of group structures and savings in procurement spend.

“I am also particularly pleased to see the progress already being made introducing the Genuit Business System in those parts of the business where rollouts have commenced.

“These improvements are already visible in our operating margins, which are ahead of the same period in the prior year, and we see further benefits ahead.”