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Genuit Group PLC on Tuesday noted a "challenging" trading environment and said it expects "some slowing" reflecting the pressures on the sector.
The Leeds, England-based plastic pipes manufacturer, formerly known as Polypipe, said revenue for the nine months that ended on September 30 amounted to £472 million, up 4.7% from £451 million a year ago.
Residential sales during the period were £297 million, up 6.2% on the prior year and Commercial & Infrastructure sales were £176 million, up 2.3% year-on-year.
However, Genuit said it has experienced "tougher trading conditions" over recent weeks and "has not seen the normal seasonal uplift in volumes in the latter part of [the third quarter]". This has impacted most parts of the business, it added.
As a consequence, the company said it now expects profit for 2022 to be at the lower end of analyst expectations. Genuit-compiled analyst consensus expects earnings before interest and tax between £96.8 million and £109.0 million.
Shares were down 4.5% at 255.50 pence each on Tuesday morning in London.
In 2021, the FTSE 250 company's pretax profit more than doubled to £62.9 million from £23.8 million in 2020. This was on revenue growth of 49% year-on-year to £594.3 million from £398.6 million.
Chief Executive Joe Vorih said: "Repair, Maintenance & Improvement is particularly impacted, though some bright spots remain, including conversion to renewable heating and improvement to existing heating system efficiency. The group is well-positioned to weather this uncertainty, with variable manufacturing capacity and we have already undertaken significant self-help measures with planned improvements to our cost structure."
Looking ahead, Genuit said it expects that capital expenditure for the full year to be around £40 million. It said the overall trading environment remains challenging and that supply chain issues persist, especially semiconductors and printed circuit boards.
Full-year results will be announced on March 14 next year.
In August, Genuit reported revenue of £318.0 million for the half-year that ended on June 30, from £295.6 million a year prior. Pretax profit slipped 2.7% year-on-year, however, to £32.9 million from £33.8 million.
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