11th Mar 2025 10:39
(Alliance News) - Genuit Group PLC on Tuesday said profit fell during 2024 due to a decline in revenue, as the firm continues to grapple with a soft market.
The Leeds, England-based provider of water, climate and ventilation systems for buildings and infrastructure said pretax profit for 2024 was GBP46.3 million, falling 4.3% from GBP48.4 million in 2023.
Revenue also sank 4.3% to GBP561.3 million from GBP586.5 million.
Selling & distribution costs increased 0.9% to GBP75.2 million from GBP74.5 million, but were offset by administration expenses reducing 2.5% to GBP88.9 million from GBP91.2 million. Genuit also saw a one-off goodwill impairment of GBP12.4 million during the year.
Genuit declared a total dividend of 12.5 pence per share, up 0.8% on-year from 12.4p.
"2024 was another challenging year for the sector, with ongoing market softness leading to reduced volumes across most segments," said Chief Executive Officer Joe Vorih.
"Against this backdrop, I am pleased that the measures we have taken to gain market share and drive productivity and efficiency, including through the deployment of the Genuit Business System, have delivered a further improvement in margin and strong cash generation. The acquisitions of Sky Garden and Omnie & Timoleon have expanded our solution offering, and we have continued to develop our acquisition pipeline."
Shares in Genuit were up 0.7% at 359.50 pence in London on Tuesday morning. The stock remains down 11% over the past twelve months.
CEO Vorih continued: "We saw some signs of market stabilisation in the second half of 2024 and market volumes in the early part of this year have been in line with management expectations. Our growth prospects remain strong, given the need for investment in UK infrastructure and housing.
"As a result, we are well-placed to take advantage of a market recovery when it comes, with strong operational gearing and a robust balance sheet enabling us to continue investing in Genuit's long-term success."
Genuit expects to deliver its medium-term target margin of more than 20% "through productivity gains from the Genuit Business System and operating leverage as volumes increase", it said.
By Emily Parsons, Alliance News reporter
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