Revenues drop at pipe manufacturer amidst tough market conditions

Leeds-headquartered pipe manufacturer, Genuit, says it has managed a resilient trading performance since its interim results were reported in August, despite a challenging market.

In the four months ended October 2024, the business’s revenue is down 1.8% versus the prior year on a like-for-like basis.

Group revenue for the 10 months ended 31 October 2024 was £471.7m (2023: £504.2m), 6.4% lower than the prior year on a reported basis and 7.1% lower than prior year on like-for-like basis.

Joe Vorih, chief executive officer, said: “Genuit has delivered a resilient performance in the face of market conditions that have remained subdued. Our focus on efficiency and productivity continues to support strong margins despite lower volumes.

“In the near term, we expect the market to remain subdued for the remainder of 2024 and into next year.

“We are also working through the impact of cost increases relating to employer National Insurance contributions and National Minimum Wage on both our own business and the industry.

“The need to decarbonise the built environment and adapt to climate change remains clear. I am confident Genuit’s portfolio of climate friendly, labour saving, and energy efficient solutions will play a key role in supporting sustainable growth in the coming years.”

Genuit has highlighted continued strong cash generation, with a debt reduction of £5m since the end of June.

The company says the Government’s increases to employer National Insurance contributions and the National Minimum Wage will add around £5m to its cost base in 2025.

Genuit says it will seek to mitigate this through productivity and supply chain improvements where possible, along with balanced price management.

It currently expects full year underlying operating profit to be broadly in-line with the lower end of analyst expectations of £92m to £94m.