Markets recovery stimulates better than expected results at manufacturer
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Genuit group, which makes plastic piping and ventilation systems, says its half one 2021 revenues are 32.4% higher than in H1 2019, explaining this reflects continued strong trading and the benefit of acquisitions.
The listed Doncaster-based company, which has today published its interim results for the six months ended 30 June 2021, recorded revenue of £295.6m in the first half of this year. (H1 2020: £173.6m, H1 2019: £223.3m).
The company’s latest pre-tax profits were £33.8m (H1 2020: £2.3m, H1 2019: £31.4m).
Genuit says its three acquisitions made during the period (Adey, Nu-Heat and Plura) have all performed well to date with Adey exceeding expectations. It adds integration of these businesses into the Group is proceeding well.
The business says the UK market outlook for the second half is generally encouraging, with strong demand levels in most parts of the UK construction market, particularly in residential.
But it also warns: “Despite buoyant demand, structural labour supply constraints and cost inflation primarily affecting raw materials and transport costs, will provide some risk to financial performance for the remainder of the year, although the Group is taking action to help mitigate this.”
Martin Payne, chief executive officer, said: “I am delighted with the Group’s performance in the first half with strong revenue and profit growth in recovering markets, despite cost headwinds.
“This reflects good organic trading as well as the contribution from our three recent acquisitions, which are performing well.
“I would like to thank all our people for their continued hard work in the face of ongoing challenges from the pandemic as well as significant increases in demand.
“The alignment of our Group strategy around sustainability and environmental drivers as well as strong market demand has seen momentum continue into the second half and the Board expects full year performance to be ahead of previous management expectations.”