Manufacturer reduces profit forecast as trading gets tougher

Manufacturer Genuit Group has warned that economic pressures have affected its own pipeline and it now expects full-year profits to be at the “lower end” of expectations.

The Leeds-headquartered company, which makes plastic piping systems, said it “has experienced tougher trading conditions over recent weeks and has not seen the normal seasonal uplift in volumes”.

Analysts had been forecasting earnings, before interest and tax (EBIT), to be in the range of £96.8m-£109.0m.

Joe Vorih, chief executive of Genuit Group

Joe Vorih, who became Genuit’s chief executive in February, said: “The overall trading environment remains challenging, and we are seeing some slowing in line with pressures on the sector.

“The group is well positioned to weather this uncertainty, with variable manufacturing capacity and we have already undertaken significant self-help measures with planned improvements to our cost structure.”

Genuit, formerly known as Polypipe, revealed group revenue for the nine months to September was £472m, up 5%.

The repair, maintenance and improvement (RMI) market has been “particularly impacted”, said Vorih, although conversions to renewable heating and improvements to existing heating system efficiency have performed well.

The company remains confident despite the short-term challenges.

Vorih added: “The medium and long-term fundamentals of the group are strong, as legislative growth drivers, customer commitments to Net Zero, and the climate-driven need for low-carbon heating solutions, improved building ventilation, and resilient stormwater management all play to Genuit’s strengths.”