25th Oct 2022 08:58
(Alliance News) - Genuit Group PLC on Tuesday noted a "challenging" trading environment and said it expects "some slowing" reflecting the pressures on the sector.
The Leeds, England-based plastic pipes manufacturer, formerly known as Polypipe, said revenue for the nine months that ended on September 30 amounted to GBP472 million, up 4.7% from GBP451 million a year ago.
Residential sales during the period were GBP297 million, up 6.2% on the prior year and Commercial & Infrastructure sales were GBP176 million, up 2.3% year-on-year.
However, Genuit said it has experienced "tougher trading conditions" over recent weeks and "has not seen the normal seasonal uplift in volumes in the latter part of [the third quarter]". This has impacted most parts of the business, it added.
As a consequence, the company said it now expects profit for 2022 to be at the lower end of analyst expectations. Genuit-compiled analyst consensus expects earnings before interest and tax between GBP96.8 million and GBP109.0 million.
Shares were down 4.5% at 255.50 pence each on Tuesday morning in London.
In 2021, the FTSE 250 company's pretax profit more than doubled to GBP62.9 million from GBP23.8 million in 2020. This was on revenue growth of 49% year-on-year to GBP594.3 million from GBP398.6 million.
Chief Executive Joe Vorih said: "Repair, Maintenance & Improvement is particularly impacted, though some bright spots remain, including conversion to renewable heating and improvement to existing heating system efficiency. The group is well-positioned to weather this uncertainty, with variable manufacturing capacity and we have already undertaken significant self-help measures with planned improvements to our cost structure."
Looking ahead, Genuit said it expects that capital expenditure for the full year to be around GBP40 million. It said the overall trading environment remains challenging and that supply chain issues persist, especially semiconductors and printed circuit boards.
Full-year results will be announced on March 14 next year.
In August, Genuit reported revenue of GBP318.0 million for the half-year that ended on June 30, from GBP295.6 million a year prior. Pretax profit slipped 2.7% year-on-year, however, to GBP32.9 million from GBP33.8 million.
By Xindi Wei; [email protected]
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