22nd May 2026 09:09
(Alliance News) - Genuit Group PLC on Friday said that its underlying operating profit for the current year is expected to be towards the lower end of current analyst estimates, as the firm cited cost inflation due to the war in the Middle East.
The Leeds, England-based provider of water, climate and ventilation systems said revenue fell 0.4% to GBP198.5 million in the first four months of 2026, from GBP199.3 million a year prior.
In the Water division, about 70% of the firm's revenue, revenue was down 0.3% lower on-year, while in the Climate division which accounts for the remaining 30% of revenue, it was down 0.4%.
Looking ahead, Genuit expects underlying operating profit to be towards the lower end of current analyst estimates for 2026, giving a range of GBP94.7 million to GBP105.5 million. The lower end would be similar to GBP94.4 million in 2025.
The company said: "The UK housing and Repairs, Maintenance & Improvements markets continue to be characterised by lower confidence and softer volumes resulting from the external environment, although other end markets including water infrastructure and building ventilation are more resilient. Without resolution of the Middle East conflict, current levels of cost inflation are likely to persist."
It added: "Whilst the outlook remains uncertain, the group's strategy continues to focus on outperformance by targeting markets with structural and regulatory drivers, including those benefiting from the Warm Homes Plan, Future Homes Standard and AMP8 water cycle. The benefits of these structural drivers for Genuit are now becoming clearer and the Group anticipates they will meaningfully benefit growth in 2027 and 2028."
Chief Executive Officer Joe Vorih said: "Whilst we recognise the external environment remains uncertain, Genuit continues to make strong strategic progress, including successfully integrating recent acquisitions - both of which will be, as expected, accretive to group results this year. Our focus on less cyclical end market segments with structural growth drivers, such as the AMP8 water investment programme and higher-performance ventilation requirements in housing and schools, is already resulting in increasing project order books."
Genuit will publish half-year results on August 11.
Genuit shares fell 2.3% to 255.83 pence each on Friday morning in London.
By Tom Budszus, Alliance News slot editor
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