Genuit Group (LON: GEN) shares fell about 14% in early trading today after the building products maker cut its full-year profit guidance. The Leeds-based group, which makes drainage, heating and ventilation systems under brands including Polypipe and Adey, blamed unseasonably warm weather and fears of higher interest rates.
The stock was at 250.2p at 8:27am on a delayed quote, down 39.4p, or 13.6%, from yesterday’s 289.6p. It has touched a low around 243p so far, close to its 52-week low of about 241p. The price is 36% below the 52-week high of 391.3p.
In its nine-month trading update, Genuit said it now expects 2026 underlying operating profit, which is operating profit before one-off items, of approximately £84m. Heating volumes were weak in the first half and worsened in the second, as warm weather delayed the autumn stocking by merchants of Adey products.
Nu-Heat, its underfloor heating business, which depends on spending on repairs and improvements to existing homes, was hit by anticipated interest rate rises.
Analyst forecasts compiled by the company put 2026 underlying operating profit at £91m to £96m, so £84m is 7.7% below the bottom of that range and 12.5% below the top. Nine-month revenue was £464.5m, up 3.5% reported but down 4.3% like-for-like, which strips out acquisitions, disposals and currency. The Climate division fell 7.2% on that basis and Water fell 3.3%.
Chief Executive Joe Vorih said the group’s wider performance held up, but some markets deteriorated.
While the majority of the Group has delivered a resilient performance, conditions have worsened in some specific markets due to unseasonally warm weather and the prevailing economic environment.
Joe Vorih, Chief Executive, Genuit Group
There are some offsets. Leverage, net debt as a multiple of annual earnings, was 1.5x at the end of September with no near-term debt maturities, and Monodraught, the ventilation business bought in 2025, grew revenue 7% year to date on a proforma basis. Simplification work should add over £4m of operating profit in 2027.
Vorih expects challenging conditions to continue into the new year, with the Future Homes Standard and the AMP8 water industry investment programme offering support from next year. Full-year results are due in March 2027.