19th Nov 2024 09:43
(Alliance News) - Genuit Group PLC on Tuesday reported challenging year-to-date trading conditions, with profit for 2024 guided in the lower end of analyst expectations.
The Leeds, England-based provider of water, climate and ventilation systems for buildings and infrastructure said markets have been subdued, with revenue down 1.8% versus the prior year on a like-for-like basis in the four months ended October.
Since the half-year ended June 30, Genuit's Water Management Solutions division has performed the poorest, down 4.9% like-for-like, with Sustainable Building Solutions down 2.0%.
By contrast, Climate Management Solutions revenue rose 1.7% on a like-for-like basis year-on-year, driven by strong demand in the residential sector of Nuaire's ventilation business coupled with improved sales at Adey in September and October.
For the 10 months to October revenue fell 6.4% on-year to GBP471.1 million from GBP504.2 million, down 7.1% on a like-for-like basis.
Revenue for SBS fell 8.4% in this period to GBP192.3 million from GBP210.0 million the previous year, owed to subdued new housebuilding and repair, maintenance and improvement activity.
An uncertain business environment and several project delays caused the firm's Waste Management Solutions segment to realise a 7.4% decline to GBP137.7 million from GBP148.7 million on-year, with CMS also down 2.6% to GBP135.4 million from GBP139.0 million.
Despite the challenging trading noted by Genuit, the firm said it expects its full-year underlying operating profit to be broadly in line with the lower end of analyst expectations of between GBP92 million to GBP94 million, representing a decline from the GBP94.1m achieved in 2023.
The firm added that it expects continuing operating margin progression, but expects market conditions to remain subdued for the rest of 2024 and into early 2025.
Genuit said that it expects the recently announced changes to the national minimum wage and employer national insurance contributions to add GBP5 million to its cost base in 2025.
Shares in Genuit were down 1.2% at 414.00 pence on Tuesday morning in London.
Genuit Chief Executive Joe Vorih 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.
"In the near term, we expect the market to remain subdued for the remainder of 2024 and into next year. We are also working through the impact of cost increases relating to employer national insurance contributions and national minimum wage on both our own business and the industry."
By Christopher Ward, Alliance News reporter
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