First half resilience for manufacturer despite inflation

Leeds-headquartered piping systems manufacturer, Genuit Group, says it has successfully mitigated cost inflation for raw materials to record a strong performance during the six months ended 30 June 2022.

Revenues increased 7.6% to £318m (H1 2021: £295.6m) while pre-tax profits were down 2.7% to £32.9m (H1 2021: £33.8m).

Joe Vorih, chief executive officer, said: “Genuit has performed well in the first half. Agile pricing leadership offset inflationary pressures, and the effect of selective business decisions helped to increase our margins.

“These, with more focus on operational efficiency, overcame some limited headwinds while delivering revenue growth over the prior year and improving profitability throughout the second quarter.

“We continue to invest in the business, achieving increased sales from new and innovative products, and positioning us to deliver our sustainability plans.

“We remain focused on unlocking ways to accelerate growth and expand operating margin. While mindful of the macroeconomic pressures, we have good momentum as we enter the second half, and the Group anticipates meeting full year expectations.”

Genuit says despite short-term headwinds in the residential sector (including ongoing boiler supply constraints), the long term fundamentals in this market continue to be strong, driven by new housebuilding and increased interest in energy efficiency.

It adds that robust price leadership actions and a greater focus on operational efficiency and cost base structure are expected to offset slightly weaker demand.