Manufacturer hails year of ‘significant strategic progress’
The chief executive of Genuit has halied “a year of significant strategic progress” for the manufacturer after it increased profits despite the challenges in the construction sector.
The Leeds-headquartered business, which was formerly known as Polypipe, employs 3,600 people making sustainable construction products, including water and ventilation systems.
Pre-tax profits were up 7%, to £48.4m, despite revenues falling by 6%, to £586.5m.
Joe Vorih, chief executive of Genuit Group
Genuit chief executive Joe Vorih said: “2023 was a year of significant strategic progress for the Genuit Group in the context of a challenging market backdrop.
“The actions we have taken to simplify the business and deploy the Genuit Business System have enabled us to deliver an improved profit margin and strong cash conversion, despite the headwinds.”
Genuit’s underlying operating margin was up 20 basis points to 16%. The group has set a target of a 20% margin in the medium-term.
It benefitted from £15m of annualised cost savings, which mitigated the impact of inflation and “market-driven volume softness”.
The group is confident it is well-placed for when the market strengthens.
Vorih added: “We have started 2024 in line with our expectations, in the context of continuing market headwinds.
“Our ongoing operational and commercial progress put us in a strong position to benefit from eventual market normalisation and, looking further ahead, we remain confident in our ability to capitalise on the structural, sustainability-linked growth drivers of our markets.”
Genuit’s closing share price last night, of 402p, values the group at £1bn. Its shares have risen 50% since October and are trading close to an 18-month high.
