UK's Genuit H1 profit falls on war-related inflation
UK's Genuit H1 profit falls on war-related inflation
Overview
UK sustainable water and climate solutions provider's H1 revenue rose 3.4% yr/yr
Adjusted operating profit and EPS declined, impacted by cost inflation and non-recurring issues
Company maintained interim dividend and full-year guidance remains unchanged
Outlook
Genuit expects challenging market conditions to persist for the rest of the year
Company says full-year expectations remain unchanged
Genuit expects structural growth drivers to create more opportunities from next year
Result Drivers
COST INFLATION & PRICE ACTION - Co said it implemented price increases to offset cost inflation driven by the Middle East conflict and managed costs in response to lower market volumes
OPERATIONAL ISSUES AT ADEY - Margins were adversely affected by a slow-moving stock provision and a supplier quality failure at Adey, which co said will not recur in H2
ACQUISITION INTEGRATION - Recent acquisitions, including Monodraught and Davidson businesses, contributed to revenue and margin, with Monodraught's commercial synergies ahead of expectations
Company press release: ID:nRSK0484Qa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| GBP 307.80 mln |
|
H1 Adjusted Operating Margin |
| 14.30% |
|
H1 Adjusted Operating Profit |
| GBP 43.90 mln |
|
H1 Adjusted Pretax Profit |
| GBP 36.80 mln |
|
H1 Basic EPS |
| GBP 0.05 |
|
H1 Operating Profit |
| GBP 26.20 mln |
|
H1 Pretax Profit |
| GBP 19.10 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction supplies & fixtures peer group is "buy"
Wall Street's median 12-month price target for Genuit Group PLC is GBp387.50, about 27% above its August 10 closing price of GBp305.20
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 9 three months ago
Reuters Recommended Reads
Aug 10 - UK's Marshalls H1 revenue falls, keeps FY profitability view
Aug 10 - Ferguson Q2 sales slightly beats on acquisitions; raises 2026 outlook
Aug 10 - Almost three-quarters of England now in drought, UK government says
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)