13th Aug 2024 09:10
(Alliance News) - Genuit Group PLC on Tuesday said the company is "well positioned" for a market recovery following a challenging first half in which revenue and profit fell considerably.
The Leeds, England-based provider of water, climate and ventilation systems for buildings and infrastructure said statutory pretax profit declined 49% to GBP15.3 million in the six months that ended June 30 from GBP29.7 million the previous year.
Revenue reduced by 11% to GBP272.4 million from GBP304.8 million, as cost of sales fell 17% to GBP149.3 million from GBP180.3 million.
Genuit maintained its interim dividend at 4.1 pence per share.
Selling & distribution costs were down 2.4% to GBP36.7 million from GBP37.6 million, while administrative expenses rose 4.0% to GBP44.6 million from GBP42.9 million.
The company cut net debt by 16% to GBP150.4 million from GBP178.9 million.
Chief Executive Office Joe Vorih said: "Whilst the market remains subdued in 2024, the group demonstrated continued operating margin improvement in the first half over prior year, as the benefits of our strategic actions continue."
Sustainable Building Solutions revenue was down 13% to GBP111.4 million; Climate Management Solutions revenue was down 7.2% to GBP78.6 million; Water Management Solutions revenue was down 11% to GBP78.1 million.
In August, Genuit acquired green roof technology firm Sky Garden Ltd for GBP2.5 million alongside underfloor heating technology company Omnie & Timoleon Ltd which it purchased for GBP2.7 million.
The two acquisitions are expected to increase revenue in the second half by GBP6 million to GBP7 million.
"We currently anticipate these [subdued] market conditions to remain, offset by continued operational and strategic progress...The Genuit group is exceptionally well positioned to benefit from eventual market recovery, with business simplification complete, at least 20% available capacity to ramp production and improved operational gearing providing confidence in medium term targets," Vorih added.
Genuit maintained its financial guidance, expecting full-year underlying operating profit to match analyst forecasts within the range of GBP92.1 million to GBP96.0 million, compared with GBP94.1 million reported in 2023.
Genuit shares were down 3.3% to 449.75 pence each in London on Tuesday morning.
By Elijah Dale, Alliance News reporter
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