Strategic progress at manufacturing group despite muted markets
Leeds-headquartered pipe manufacturer, Genuit, warns it expects its markets to remain subdued during the second half of 2024, as it releases its unaudited interim results for the six months ended 30 June 2024.
The business recorded statutory pre-tax profits of £15.3m (H1 2023: £29.7m) and group revenues of £272.4m (H1 2023: £304.8m).
It says its markets continue to be affected by low volumes of new housebuilding, a softer commercial construction sector and a repair, maintenance and improvement sector (RMI) which has been waiting for interest rate reductions.
As reported last week, Genuit has made two acquisitions in the South West in deals totalling £5.2m.
Joe Vorih, chief executive officer, said: “Whilst the market remains subdued in 2024, the group demonstrated continued operating margin improvement in the first half over prior year, as the benefits of our strategic actions continue.
“I’m particularly pleased at the momentum building in the embedding of the Genuit Business System through our businesses.
“As we look forward into the second half, we currently anticipate these market conditions to remain, offset by continued operational and strategic progress.
“The Genuit Group is exceptionally well positioned to benefit from eventual market recovery, with business simplification complete, at least 20% available capacity to ramp production and improved operational gearing providing confidence in medium term targets.”
Genuit adds that sales of new products totalled £105.4m in the first half.
It notes strong progress was made on the group’s underfloor heating strategy with 15 commitments signed for new-build developments in the period.
The underfloor heating sector is expected to grow significantly as its share of new-build homes increases under the transition to the Government’s Future Homes Standard.
The group says it also secured several projects with Modern Methods of Construction (MMC) manufacturers of pods and volumetric modules, for delivery in the second half of the year.
Genuit explains that these low labour solutions are expected to be a growth sector within commercial construction.
