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Genuit Group PLC on Monday lowered its full-year profit expectations amid ‘uncertainty’ surrounding the impacts of next week’s UK government budget, despite reporting increased revenue in the year so far. Shares in Genuit fell 12% to 313.00 pence on Monday morning in London. The Leeds, England-based provider of water, climate and ventilation systems for buildings and infrastructure lowered its full-year expectations for underlying operating profit to range from £92 million to £95 million, compared with £95 million to £99 million previously. In 2024, the company generated a £92.2 million operating profit. The company attributed lower market volumes to ‘current subdued market conditions’ resulting from ‘potential impacts’ of the UK government’s autumn budget and the ‘current UK economic outlook.’ Genuit said it expects underlying operating margins to increase sequentially in the second half ‘as a result of price increases, productivity gains from the Genuit Business System and other cost efficiencies.’ Revenue for the 10 months ended October 31 rose 8.4% on a reported basis to £511.1 million from £471.7 million a year ago. Climate Management Solutions year-to-date revenue was up 10% to £149.5 million from £135.4 million. For Water Management Solutions, the year-to-date revenue increased 7.3% to £147.7 million from £137.65 million. Sustainable Building Solutions rose 8.1% to £208.0 million from £192.4 million. Revenue for the four months ended October 31 grew 7.1% year-on-year on a reported basis and 3.7% on a like-for-like basis. On a reported basis, Climate Management Solutions revenue for the four months ended in October was up 9.0% to £61.9 million from £56.8 million. Water Management Solutions revenue rose 3.3% to £61.5 million from £59.5 million. Sustainable Building Solutions revenue rose 8.5% to £87.8 million from £80.9 million. Genuit expects its two recent acquisitions of Monodraught and Davidson Holdings to contribute approximately £13 million in revenue in the fourth quarter of the year. The company said market expectations for full-year revenue are in the range of £599 million to £625 million, having achieved £561.3 million last year. ‘The group remains focussed on outperforming the broader market by targeting higher growth segments that are exposed to the structural drivers of sustainability, continuing to increase margins through the Genuit Business System and further developing its mergers and acquisitions pipeline,’ the company said. Chief Executive Joe Vorih said: ‘We are hopeful that the UK government budget in November will confirm policies that are supportive of our industry. We are well-positioned to supply a material increase in construction activity given the right conditions.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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