Acquisitions and product price increases boost revenues at manufacturer

Piping systems manufacturer, Genuit Group, expects its underlying operating profit to be consistent with the current consensus for the full year of about £107m.

The Leeds-headquartered company has issued a trading update for the four months ended 30 April 2022, noting that its start of the year performance has been in line with expectations.

Group revenue for these four months was £209m (2021: £193m), 8.3% higher than 2021.

The performance was driven by the Group’s acquisitions and price increases across its product portfolio.

Joe Vorih, chief executive officer said: “We have started the year in line with expectations, trading well against very strong comparators and with the Group benefiting from our strategic investments and our capabilities in water, climate and ventilation management.

“Whilst we remain mindful of the inflationary environment, our increased commercial focus has started to improve margins and we expect this to feed through in the second half of this year.

“We are confident the Group has the agility and resilience to keep ahead of any changes in the market.”

Residential Systems revenue, representing 62% of Group revenue, was 7.8% higher than the same period in 2021, which Genuit says was helped by robust and efficient pricing actions and its February 2021 acquisitions of Adey and Nu-Heat.

Commercial and Infrastructure Systems revenue, representing 38% of Genuit Group’s revenue, was 9% higher than the same period in 2021, driven by market leading price increases and a small contribution from the acquisition of Plura in February 2021.