- Sales return to organic growth
- New housing market recovering
- RMI market ‘subdued’ for now
Water, climate and ventilation product specialist Genuit (GEN) was the best riser in the FTSE 250 at the start of the week after it posted a positive four-month trading update and maintained its full-year 2025 guidance.
The shares gained 13p or 3.3% to 415p in early trading, close to a new 12-month high and a pound above their early-April low.
‘SIGNS OF RECOVERY’
Between the beginning of January and the end of April, Genuit reported group revenue of £199.3 million, an increase of 8.5% on the same period last year (5.3% on a like-for-like basis) as the UK market showed ‘encouraging signs of recovery’.
Sustainable building solutions, the largest business unit at around 40% of sales, saw an 8.2% increase in turnover on a like-for-like basis helped by market share gains after the exit of one of its competitors in the UK drainage market.
The firm noted that while volumes were still below normal thanks to tough RMI and commercial markets, new housebuilding was showing positive signs while the business was also boosting sales thanks to more value-added products.
Water management solutions, which represent around 28% of sales, increased turnover by close to 10% (1.8% on a like-for-like basis) with demand for stormwater attenuation products increasing due to a drier than normal Spring.
Climate management solutions, which makes up the balance, saw a 9% increase in sales (5.2% on a like-for-like basis) thanks to growth in residential ventilation, while the water filtration business posted flat sales and underfloor heating sales were ‘more subdued’ due to a softer RMI market, although sales picked up in April.
WHAT DID THE CEO SAY?
Chief executive Joe Vorih, who has led the Leeds-based firm for the last three years, said ahead of today’s AGM: ‘Each of our business units has delivered organic sales growth for the first four months and we have secured some positive share gains in a competitive market. We are also making strong progress on the continued deployment of the Genuit Business System to drive productivity.’
Vorih added: ‘Whilst we recognise the broader macroeconomic backdrop remains uncertain, Genuit is not directly exposed to changes in trade tariffs and is well positioned to navigate this near-term environment. Over the medium-term, we remain confident in out-performing the market due to our strong exposure to sustainability-linked growth drivers.’
