Genuit on track despite Q1 'softness'

Water, climate and ventilation solutions group Genuit has said its full-year outlook remains unchanged despite "market softness" since the start of 2024 as it continues to make improvements to underlying margins.

Revenues over the four months to 30 April were down 8.6% on last year at £183.7m, with all three of the group's divisions seeing a weaker performance.

Sustainable Building Solutions revenues were down 10.6% due to softness in new housebuilding, and repair, maintenance and improvement markets; Water Management Solutions revenues fell 12.1% as project revenues were affected by wet weather; while Climate Management Solutions slipped 2.5% due to weakness in the boiler market.

Nevertheless, ongoing savings made from business simplification has helped continued improvement in the underlying operating margin, with the close of the final two out of six sites. Genuit said it was on track to deliver the previously announced £15m of annualised savings from the simplification programme, and will realise further productivity gains through the ongoing rollout of lean projects under the Genuit Business System.

"Genuit continued to make encouraging strategic and operational progress in the first four months of 2024, despite ongoing market softness, and our expectations for the full year are unchanged," said chief executive Joe Vorih.

"We are continuing to benefit from our focus on business simplification, continuous operational improvement and product innovation which is driving an improved operating margin."