Manufacturer hails resilient performance in tough economic climate

Leeds-headquartered manufacturer, Genuit Group, says it has managed a better than expected performance in the first half of the year in the face of difficult market conditions.

Releasing its unaudited interim results for the six months ended 30 June 2023, the business, which makes water, climate and ventilation management products, reports a revenue drop of 4.2% to £304.8m (H1 2022: £318m).

Revenues were 5% lower on a like-for-like basis, driven by a volume decline of 14.5%. Pre-tax profits were down 9.7% to 29.7% (H1 2022: 32.9%). 

Joe Vorih, chief executive officer, said: “Genuit has made good progress in the first half of the year. Ongoing self-help measures, deployment of the Genuit Business System and continued business simplification enabled improvements in the quality of operating margin despite deteriorating market conditions.

“Despite more challenging conditions notably in the residential new build and RMI markets, we upgraded market expectations in May and expect group full year operating profit to be at the top-end of current full year analyst expectations.

“Whilst the economic situation remains challenging, we have good momentum moving into the second half as we focus on improving efficiency, creating value and enabling growth.”

Genuit warns it anticipates an improvement in market conditions in the current year is “unlikely” given the macroeconomic environment.

But it notes pent-up boiler and heating system demand is expected to be released as the economic situation stabilises, providing scope for recovery of demand within its climate management operations.

The group says it is confident the tailwind of increasing energy efficiency in heating and ventilation, storm water management and lower carbon building materials will benefit its businesses.