Genuit FY profit to be 'marginally above' market views, shares surge

Genuit surged on Tuesday after the manufacturer of plastic piping systems said full-year adjusted operating profit was set to be "marginally" above market expectations of £89.7m.

The company - formerly Polypipe - said its trading performance since the interims in August has remained "resilient" against "a backdrop of continued macroeconomic uncertainty".

This was supported by the diversity of the group’s market segment exposure, it said.

In the 10 months to the end of October, revenue dipped 4.8% on the same period a year earlier on a like-for-like basis to £504.2m. This was driven by a volume reduction of around 11%, partially offset with successful new product launches and commercial management, including international expansion.

Chief executive Joe Vorih said: "We have made good progress over the last four months, with demand in our drainage, storm water 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."

At 0915 GMT, the shares were up 8.9% at 318p.