Revenues rise at manufacturer despite economic turbulence
Manufacturer, Genuit Group, has reported a revenue increase of 4.7% on a strong comparative year and operating performance marginally ahead of expectations in its audited results for the year ended 31 December 2022.
The Leeds-headquartered business, which makes plastic piping systems, achieved revenues of £622.2m (2021: £594.3m) and pre-tax profits of £45.4m (2021: £62.9m).
Joe Vorih, chief executive officer, said: “I would like to thank our talented and purpose-driven team for delivering a record level of revenue and profit despite considerable inflation, housing market uncertainty and supply chain disruption.
“We have put in place a new business structure and are focusing on climate-driven long-term investment to deliver above-market organic growth and profitability with clear mid-term targets.
“While short-term market instability will likely remain through much of 2023, our self-help measures, the Genuit Business System, and investment for sustainability-driven growth should position us well to deliver against our financial and strategic commitments.”
Genuit adds that it has prioritised higher margin business, exiting some less profitable product lines during the year.
It notes tougher trading conditions in the latter part of the year precluded any normal autumn seasonal uplift and subdued trading continued until the end of the year.
It stresses it remains a highly cash-generative business, and even after significant capital investment to upgrade manufacturing and boost growth, the company generated £62.6m cash (2021: £57.2m).
Genuit says this year has started well, with trading in line with expectations.