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RNS Number : 3428F  Genuit Group PLC  22 May 2026

22 May 2026

Genuit Group plc

Managing a challenging environment with speed, rigour and discipline

 

Genuit Group plc ('Genuit', the 'Company' or the 'Group'), the UK's largest
provider of sustainable water and climate products and solutions for the built
environment, today issues an update on trading for the four months ended 30
April 2026 ahead of its Annual General Meeting ('AGM'), which takes place at
13:00hrs (BST) today at 4 Victoria Place, Holbeck, Leeds LS11 5AE.

 

Joe Vorih, Chief Executive Officer, commented:

"The Group has navigated a challenging trading environment in the first four
months of the year with speed rigour and discipline, focusing on what we can
control. The conflict in the Middle East and prevailing UK macroeconomic
environment has resulted in lower market volumes and significant cost
inflation, particularly in polymers. As we have demonstrated in prior
inflationary markets, Genuit has responded swiftly, including working with
customers to implement double digit price increases which are now in effect.
We are also accelerating planned simplification initiatives to reduce cost and
continue to deliver benefits from the Genuit Business System.

Whilst we recognise the external environment remains uncertain, Genuit
continues to make strong strategic progress, including successfully
integrating recent acquisitions - both of which will be, as expected,
accretive to Group results this year. Our focus on less cyclical end market
segments with structural growth drivers, such as the AMP8 water investment
programme and higher-performance ventilation requirements in housing and
schools, is already resulting in increasing project order books. Further,
important regulatory drivers and Government initiatives including the Warm
Homes Plan and the recently confirmed Future Homes Standard improve our
ability to sell higher value heating and ventilation solutions and underpin
our confidence in the future."

 

Total Group revenue for the four months ended 30 April 2026 was £198.5m
(2025: £199.3m), representing a year-on-year decrease of 0.4% (8.7% decrease
on a like-for-like basis).

The Group's markets were affected by persistent wet weather in January and
February, resulting in subdued construction site activity. The conflict in the
Middle East started to impact the Group in March, including inflation in
polymer and freight costs. This became more pronounced in April. The Group has
acted swiftly and implemented double digit price increases in May on affected
polymer-based product lines and increased freight charges across the board.
Whilst there has been some seasonal uptick, volumes in March and April have
remained lower than the prior year, with market sentiment adversely affected
by the prevailing macroeconomic environment.

Against this backdrop, the Group has focused on what it can control. We have
made strong progress on integrating the two recent acquisitions, accelerated
simplification initiatives to reduce cost whilst maintaining capacity and we
continue to focus on developing structural growth opportunities.

Climate Division (c.30% of Group revenue) - revenue was 0.4% lower
year-on-year (9.7% lower on a like-for-like basis).  Market volumes have been
adversely affected by the external environment, with ventilation faring better
than the RMI focused heating businesses. Integration of the Monodraught
business, acquired in 2025, is proceeding well and is on track to deliver
strong sales synergies and Group target margin.

The strategic focus on integrated ventilation solutions is positioned to drive
growth, underpinned by the Schools Rebuilding Programme, with Monodraught
orders up c.15% year to date versus prior year with an order book in excess of
12 months revenue. Technical integration of Monodraught's control platform
with Nuaire's mechanical ventilation units has been achieved, enabling a
'whole school' solution, with commercial launch scheduled for the second half
of the year.

Water Division (c.70% of Group revenue) - revenue was 0.3% lower year-on-year
(8.2% lower on a like-for-like basis). Market volumes have been adversely
affected by the external environment, with moderate year-on-year impact in
residential and a greater impact in the civils and commercial businesses.
Middle East revenue (c.3.5% of Group revenue in 2025) was c.50% lower
year-on-year as a direct impact of the ongoing conflict.

Importantly, the Group continues to benefit from significant use of recycled
polymer (over 50% of Genuit's polymer consumption by volume), which has a
lower carbon content and to date has experienced lower levels of inflation
than virgin polymers.

The divisional focus on growth in water infrastructure is progressing well.
There is an increasing interest in Genuit's recycled plastic integrated
stormwater solutions due to ease of installation, lower total cost and lower
carbon footprint. AMP8 project quotes of over £5m have been submitted year to
date with an increasing win rate of over 50%.

Integration of the Davidson Holdings businesses, acquired in 2025 is
proceeding well with operating margins of over 20% in the four months to
April, in line with the investment case. The Group now expects to realise
planned incremental integration benefits in 2027, ahead of the original
assumptions.

 

2026 Guidance and Outlook

The UK housing and RMI markets continue to be characterised by lower
confidence and softer volumes resulting from the external environment,
although other end markets including water infrastructure and building
ventilation are more resilient. Without resolution of the Middle East
conflict, current levels of cost inflation are likely to persist. Whilst
double digit price increases have been implemented swiftly, the short lag
between cost inflation and these actions, combined with lost contribution at
lower volumes, means that underlying operating profit in the first half is
anticipated to be in the region of the prior year on a reported basis (H1
2025: £44.6m).

 

The Group is accelerating planned simplification initiatives that will target
between £4m and £5m of annualised cost savings. Whilst the impact of these
actions in the 2026 financial year will be moderate, this is expected to
deliver c.60-70 bps of margin improvement for 2027.  In addition, the Genuit
Business System continues to generate additional productivity benefits and
efficiencies that will help to combat the effects of inflation. The
combination of actions being taken are expected to improve underlying
operating margin sequentially in the second half of 2026.

 

Assuming a timely resolution of the Middle East conflict and stabilisation of
the macroeconomic environment, the Board anticipates Group underlying
operating profit to be towards the lower end of current analyst estimates for
full year 2026 (1).

 

Whilst the outlook remains uncertain, the Group's strategy continues to focus
on outperformance by targeting markets with structural and regulatory drivers,
including those benefiting from the Warm Homes Plan, Future Homes Standard and
AMP8 water cycle. The benefits of these structural drivers for Genuit are now
becoming clearer and the Group anticipates they will meaningfully benefit
growth in 2027 and 2028.

 

(1) (Company compiled analyst consensus range for FY26 underlying operating
profit is between £94.7m and £105.5m.)

Notice of Interim Results

The Company will report its interim results for the six months ending 30 June
2026 on 11th August 2026.

 

 

 

Enquiries:

Joe Vorih, Chief Executive Officer

Tim Pullen, Chief Financial Officer

+44 (0) 1138 315315

 

Headland Consultancy:

 Matt Denham      Telephone: 020 3805 4822

                  Email: genuit@headlandconsultancy.com
 Chloe Francklin

 

About Genuit Group plc

Genuit Group plc is the UK's largest provider of sustainable water and
climate management products and solutions for the built environment. Genuit's
solutions enable customers to mitigate and adapt to the effects of climate
change, while meeting evolving sustainability regulations and standards.

The Group delivers its Sustainable Solutions for Growth strategy via two
Divisions:

Climate - low carbon heating and cooling systems, and clean and healthy air
ventilation.

Water - products and solutions for water distribution, conservation, storage
and attenuation.

Genuit's portfolio includes some of the industry's most established and
innovative brands, including Polypipe, Nuaire and Adey.

The Group serves built environment markets with strong climate-related growth
drivers, primarily in the UK and with an increasing focus on international
diversification.

 

 

 

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