Shares of Leeds piping and ventilation systems firm Genuit Group fell 14% on Monday after it said it expects current subdued market conditions “to persist for the remainder of 2025 and into early 2026, driven by uncertainty surrounding the potential impacts of the UK Government Budget … and the current UK economic outlook.”

Genuit said: “The group expects full year Underlying Operating Profit to be in the range of £92 million to £95 million, reflecting a moderation in market volumes since the H1 results, driven by purchasing uncertainty relating to the November UK Government Budget and current UK economic outlook.”

Genuit-compiled analyst consensus forecasts for 2025 show a range of £599 million to £625 million of revenue and £95 million to £99 million of underlying operating profit.

The firm added in its outlook: “The group continues to expect underlying operating margins to increase sequentially in H2 2025 as a result of price increases, productivity gains from the Genuit Business System and other cost efficiencies.

“Notwithstanding near-term trends, Genuit is well placed to benefit from eventual market recovery and the structural growth drivers to which the Group is exposed.

“The Group remains focussed on outperforming the broader market by targeting higher growth segments that are exposed to the structural drivers of sustainability, continuing to increase margins through the Genuit Business System and further developing its M&A pipeline.”

In an update on trading for the 10 months ended October 31, 2025, Genuit said revenue for the four months ended October 31 grew 7.1% year-on-year on a reported basis and 3.7% on a like-for-like basis “demonstrating resilience and market share gains in a subdued mark.”

Group revenue for the 10 months ended October 31 was £511.1 million, 8.4% higher than the prior year on a reported basis and 5.1% higher than prior year on like-for-like basis.

The firm added: “Underlying operating margins are expected to increase sequentially in H2 2025 as a result of price increases, productivity gains from the Genuit Business System and other cost efficiencies

“Strong strategic progress has been made in the period, including the acquisitions of Monodraught and Davidson Holdings announced in September, expected to generate over £55m of margin accretive revenue in 2026

“Continued robust cash generation and a strong balance sheet positioning Genuit well for disciplined capital deployment as opportunities arise.”