Genuit Group’s Share Price Surged 13.9% on Its 10-Month Update

The Genuit Group PLC (LON: GEN) share price surged 13.86% after issuing a trading update for the last ten months ended 31 October 2023. The company noted that its trading performance has remained robust since the release of its interim results in August, with the resilience being attributed to the diversified market segments the Group serves.

The leading UK provider of sustainable water, climate, and ventilation solutions for the construction sector also revealed that it recorded total revenue of £504.2 million, representing a 4.8% decline compared to the same period in the previous year on a like-for-like basis. 

The decline was primarily driven by an approximately 11% volume reduction, partially offset by successful new product launches and effective commercial management, including expansion into international markets.

Sustainable Building Solutions (SBS) sales amounted to £210.0 million, reflecting a 12.3% decrease from the previous year. The decrease aligns with the Group's strategy to reduce lower-margin and non-core business, aligning with its objectives for business simplification and volume expectations amid the prevailing market conditions.

Water Management Solutions (WMS) sales remained steady at £148.7 million, with solid demand for the Group's drainage and stormwater attenuation products contributing to this resilience.

Climate Management Solutions (CMS) sales reached £139.0 million, marking a 5.3% growth compared to the prior year. This growth was primarily driven by robust demand in the Nuaire ventilation business. 

Genuit Group has continued to implement measures to simplify its operations, enhance efficiency, and mitigate the impact of lower volumes. These measures include site consolidations to achieve economies of scale without reducing production capacity.

Despite market headwinds, Genuit Group's proactive cost management and commercial progress are expected to result in a full-year adjusted operating profit that slightly exceeds market expectations. 

Joe Vorih, Genuit Group’s CEO, commented: “We have made good progress over the last four months, with demand in our drainage, stormwater and ventilation markets holding up well, supported by structural and sustainability growth drivers. Our continued focus on simplifying the business and driving operating efficiencies means that we are well positioned to navigate the current uncertain environment and benefit from incremental margin improvement when volumes return to more normal levels.”

Genuit Group share price. 

The Genuit Group share price surged 13.86% to trade at 329.35p from Tuesday’s closing price of 289.25p.