REG - Genuit Group PLC - Half-year Report
Tue 07:00
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RNS Number : 8812U Genuit Group PLC 12 August 2025
Genuit Group plc
Interim results for the six months ended 30 June 2025
Revenue and profit growth, full year expectations maintained
Genuit Group plc ('Genuit', the 'Company' or the 'Group'), the UK's largest
provider of sustainable water, climate and ventilation solutions for the built
environment, today announces its unaudited interim results for the six months
ended 30 June 2025.
Financial Results H1 2025 H1 2024 Change
Revenue (£m) 297.8 272.4 9.3%
Alternative Performance Measures(1)
Underlying operating profit (£m) 44.6 43.6 2.3%
Underlying operating margin (%) 15.0 16.0 (100 bps)
Underlying profit before tax (£m) 38.8 37.6 3.2%
Underlying earnings per share (basic - pence) 11.6 11.2 3.6%
Underlying operating cash conversion (%)(2) 65.1 99.5 (34.4 pps)
Leverage (times pro-forma EBITDA(3)) 1.0 1.1 -
Statutory Measures
Operating profit (£m) 37.5 21.3 76.1%
Profit before tax (£m) 31.7 15.3 107.2%
Earnings per share (basic - pence) 9.6 3.4 182.4%
Cash generated from operations (£m) 34.3 46.8 (26.7%)
Dividend per share (pence) 4.2 4.1 2.4%
(1) (Alternative performance measures (APMs) are used by the Group to assess
the underlying performance of the business. A definition of all the APMs is
set out in Note 1 of the interim condensed consolidated financial statements
on pages 16 and 17.)
(2) (Underlying operating cash conversion has been restated for both periods
to a pre capex and lease payments basis, previously calculated as underlying
operating cashflow (after payments for capital expenditure excluding
non-underlying proceeds of sale and lease liabilities), as the Group believes
this is a more appropriate measure of cash conversion as it demonstrates the
Group's working capital cash management efficiency before capital investment
and allows for alignment with the Group's strategic investment profile in the
medium-term.)
(3) (Pro-forma EBITDA is reconciled in Note 11 on page 23.)
(4) (Company compiled consensus range for FY25 underlying operating profit is
between £93.0m and £97.7m.)
Joe Vorih, Chief Executive Officer, said:
"The Group returned to top line growth in the first half of this year,
outperforming a market that continues to be characterised by weak confidence
and broadly flat volumes. In this context, we are pleased to have delivered
growth in key segments including ventilation and blue-green roofs, as well as
targeted market share gains.
As we look forward into the second half, we anticipate these challenging
market conditions to persist, although with margins benefiting from price
actions, cost efficiency and productivity actions already underway, supported
by the Genuit Business System. We expect underlying operating profit for the
year to be in-line with consensus(4).
We are confident in our ability to continue to outperform our markets, with
supportive regulatory-driven tailwinds emerging, including the Future Homes
Standard, where our breadth of offering is supporting our customers'
development, and the AMP8 spending cycle, with its focus on stormwater
management solutions."
Financial Highlights
· Half year revenue of £297.8m (H1 2024: £272.4m) increased by 9.3%
year-on-year on a reported basis and 6.1% on a like-for-like basis, driven by
adoption of new solutions and targeted market share gains.
· Reported operating profit of £37.5m (H1 2024: £21.3m) increased
76.1% year-on-year, due to higher gross profit and lower exceptional items
than the prior year.
· Underlying operating profit of £44.6m, an improvement year-on-year
of 2.3%, despite the increased costs associated with the National Insurance
and National Minimum Wage increases.
· Like-for-like underlying operating profit margin of 15.5% (H1 2024:
16.0%) reduced by 50bps (100bps on a reported basis), reflecting the expected
impact of the prevailing cost and pricing environment.
· Underlying operating cash generation of £38.7m (H1 2024: £54.9m),
representing 65.1% cash conversion (H1 2024: 99.5%), in-line with management
expectations and reflects a normal phasing. Full year operating cash
conversion is expected to be in the region of 90%, in-line with our
medium-term target.
· Leverage reduced from 1.1 times at 30 June 2024 to 1.0 times
pro-forma EBITDA at 30 June 2025, providing strategic optionality for
disciplined bolt-on M&A opportunities.
· The Board is proposing an interim dividend per share of 4.2p (H1
2024: 4.1p), in-line with the Group's progressive dividend policy and
reflecting both the strength of the balance sheet and the Board's confidence
in medium-term prospects.
Business Unit Performance
· Climate Management Solutions (CMS)
o Revenue up 7.9% to £87.6m, with an underlying operating margin of 14.9%
on a like-for-like basis (H1 2024: 15.1%).
o Reflects strong growth in Nuaire and Adey, with efficiency gains from
Genuit Business System (GBS) and automation partially offsetting the margin
impact of National Insurance and National Minimum Wage increases.
· Water Management Solutions (WMS)
o Revenue up 2.7% to £86.2m, with an underlying operating margin of 4.5% on
a like-for-like basis (H1 2024: 10.0%).
o Year-on-year growth in stormwater attenuation and blue-green roofs, with
margins impacted by National Insurance and National Minimum Wage increases and
a slow-moving inventory provision.
o Price and cost actions and GBS projects have been implemented, which will
positively impact H2 margins.
· Sustainable Building Solutions (SBS)
o Revenue up 7.9% to £120.2m, with an underlying operating margin of 23.4%
(H1 2024: 21.1%) on a reported and like-for-like basis.
o Growth reflects market share gains following the exit of a competitor in
drainage and moderate growth in housebuilding, with margins benefiting from
GBS productivity enhancements.
Strategic and Operational Highlights
Growth - Focusing on higher-growth, sustainability-driven markets, via organic
growth and disciplined M&A opportunities.
· Genuit's product portfolio is expected to benefit from emerging
regulatory changes and sustainability-related growth drivers.
· The introduction of Awaab's Law later in 2025, targeting damp and
mould in private rental and social housing, is expected to drive continued
demand in residential ventilation for CMS.
· The AMP8 spending cycle for water companies is underway with
increasing spend from 2026, creating significant opportunities for WMS with
its focus on stormwater management.
· The Future Homes Standard will be clarified later in 2025 and
implemented over the course of one to two years. Major housebuilders are
already deploying solutions ahead of formal introduction and the Group's
breadth of offering is increasing the addressable market for the Group.
· Sky Garden is benefiting from growth in the blue-green roof market
due to increased requirements for stormwater management, re-greening and
biodiversity in developments.
· New Product Vitality at 15.3%, with a strong innovation pipeline of
over 60 projects in progress across the Group.
Sustainability - Providing the lowest-carbon choice for our customers and
maximising exposure to structural growth drivers.
· Continued improvement on reducing scopes 1 & 2 carbon
intensity, on a rolling twelve-month basis, to 0.108 tCO₂e per tonne of
production (H1 2024: 0.139); awarded first Carbon Disclosure Project score of
B.
· Genuit remains the European leader for recyclate use amongst its
peers, with recycled materials forming 50.9% of polymer inputs (H1 2024:
51.2%) in the Group's strategic Business Units.
Genuit Business System - Creating value through lean transformation and
operational excellence.
· Over 40 GBS kaizen events held across the Group in H1 2025 (H1
2024: 12), driving improvements in productivity, space utilisation and
customer service.
· A kaizen event at Building Products increased equipment
effectiveness from an average of 37% to 80%, reducing downtime by over 50% and
gaining an additional 12,500 hours of moulding capacity per year, enabling
future growth without requiring capex investment.
· At the end of H1 2025, almost 20% of Genuit employees had
participated in a targeted GBS kaizen event or training, including over 30% of
the Genuit Leadership Team.
People and Culture - Creating value and enabling growth through the
capability, expertise and development of our employees.
· Continued investment in accredited Earn and Learn programmes for
employees, with 20.5% of colleagues in The 5% Club (FY 2024: 18.3%).
· The Group promoted 53 colleagues during H1 2025 of which 30% were
female. The Group welcomed 9 senior leaders in H1 2025 of which 55% were
female, reflecting our continued commitment to diversity and inclusion in the
construction industry.
Outlook
· The Group continues to trade in-line with management's expectations
and expects full year underlying operating profit to be in-line with
consensus.(4)
· The external environment remains challenging and increases in
market volumes are not expected this year.
· The Group expects underlying EBIT margin to increase sequentially
in the second half, as price increases, productivity gains from Genuit
Business System projects and other cost efficiencies, particularly in Water
Management Solutions, are delivered.
· The Group has strong operational gearing and has at least 25%
available capacity within the current operational footprint, providing
confidence in the achievement of medium-term profit targets as volumes grow.
· The Group remains focused on outperforming the market through
adoption of new solutions, targeted share gains and cultivating the emerging
structural trends to which it is exposed.
(4) (Company compiled consensus range for FY25 underlying operating profit is
between £93.0m and £97.7m)
Enquiries:
Joe Vorih, Chief Executive Officer
Tim Pullen, Chief Financial Officer
+44 (0) 1138 315315
Headland Consultancy:
Matt Denham Telephone: 020 3805 4822
Chloe Francklin Email: genuit@headlandconsultancy.com (mailto:genuit@headlandconsultancy.com)
A copy of this report will be available on our website www.genuitgroup.com
(http://www.genuitgroup.com/) today from 0700hrs (BST).
A live webcast of the Half Year Results presentation, hosted by Joe Vorih,
Chief Executive Officer, and Tim Pullen, Chief Financial Officer, will be
broadcast at 0830 on Tuesday 12 August 2025. To access the live presentation
on that date, participants will be required to register in advance using the
following webcast link:
https://www.investis-live.com/genuit-group/68760a131efae0000ed0dbdc/lanrt
(https://url.uk.m.mimecastprotect.com/s/M1XOCYW7OUj861RC0fWixGCW7?domain=investis-live.com)
We recommend you register by 0815hrs (BST). The webcast will be recorded, and
a replay will be available shortly after the webcast ends via the same link
above. A recording of the presentation and a copy of the slides will be
available following the event on the Company's website at Results,
(https://protect-eu.mimecast.com/s/FREECWLPMuyQR04ixpCR7?domain=genuitgroup.com)
Reports & Presentations - Genuit Group plc
(https://protect-eu.mimecast.com/s/FREECWLPMuyQR04ixpCR7?domain=genuitgroup.com)
Notes to Editors:
About Genuit Group plc
Genuit Group plc is the UK's largest provider of sustainable water, climate
and ventilation solutions for the built environment. Genuit's solutions allow
customers to mitigate and adapt to the effects of climate change and meet
evolving sustainability regulations and targets.
The Group is divided into three Business Units, each of which addresses
specific challenges in the built
environment:
· Climate Management Solutions - Addressing the drivers for low
carbon heating and cooling, and clean and healthy air ventilation.
· Water Management Solutions - Driving climate adaptation and
resilience through integrated surface and drainage solutions.
· Sustainable Building Solutions - Providing a range of construction
solutions to reduce the carbon content of the built environment.
Across these Business Units, Genuit's brands are some of the most
well-established and innovative in the industry, including Polypipe, Nuaire
and Adey.
The Group primarily serves the UK and European building and construction
markets with a presence in Italy and the Netherlands and sells to specific
niches in the rest of the world.
Group Results
Revenue and profitability
Group revenue for the six months ended 30 June 2025 was 9.3% higher than the
prior year at £297.8m (H1 2024: £272.4m). On a like-for-like basis,
excluding the impact of 2024 acquisitions, revenue was 6.1% higher than prior
year.
The Group saw a 100 basis points gross margin reduction versus 2024 H1
including the effects of the National Insurance and National Minimum Wage
increases and a one-off slow moving inventory provision of £0.9m recognised
in WMS. Underlying operating profit increased to £44.6m (2024: £43.6m)
despite these impacts.
Underlying profit before tax was £38.8m (2024: £37.6m), an increase of 3.2%.
The Group continued to invest in product development and innovation throughout
the first half of 2025. In H1 2025, operating profit benefited from £0.8m of
HMRC approved Research and Development expenditure credit (2024: £0.9m).
Underlying profit after tax was higher than the prior year at £28.9m (2024:
£27.7m). Underlying basic earnings per share were 11.6 pence (2024: 11.2
pence).
Including non-underlying items, profit after tax was £23.9m (2024: £8.4m),
and basic earnings per share were 9.6 pence (2024: 3.4 pence).
Revenue, underlying operating profit and margin H1 2025 H1 2024 Change
£m £m %
Revenue 297.8 272.4 9.3
Underlying operating profit 44.6 43.6 2.3
Underlying operating margin 15.0% 16.0% (100) bps
Revenue (£m) H1 2025 H1 2024 Change % LFL Change
%
Climate Management Solutions 87.6 78.6 11.5 7.9
Water Management Solutions 86.2 78.1 10.4 2.7
Sustainable Building Solutions 120.2 111.4 7.9 7.9
294.0 268.1 9.7 6.3
Other* 3.8 4.3 (11.6) (11.6)
Total Group 297.8 272.4 9.3 6.1
* Relates to Polypipe Italia SRL which does not form part of the Group's
strategic Business Units.
Underlying operating profit (£m) H1 2025 ROS %* H1 2024 ROS %* Change
bps
Climate Management Solutions 12.1 13.8 11.9 15.1 (130) bps
Water Management Solutions 4.0 4.6 7.8 10.0 (540) bps
Sustainable Building Solutions 28.1 23.4 23.5 21.1 230 bps
44.2 15.0 43.2 16.1 (110) bps
Other** 0.4 10.5 0.4 9.3 120 bps
Total Group 44.6 15.0 43.6 16.0 (100) bps
* Return on sales (ROS) is equivalent to underlying operating margin
(underlying operating profit / revenue)
** Relates to Polypipe Italia SRL which does not form part of the Group's
strategic Business Units.
Business Unit Review
Climate Management Solutions
· Climate Management Solutions (CMS) revenue of £87.6m increased by
11.5% year-on-year on a reported basis (7.9% increase on a like-for-like
basis), with an underlying operating margin of 13.8% on a reported basis (H1
2024: 15.1%) and 14.9% on a like-for-like basis (H1 2024: 15.1%).
o Nuaire has seen growth in residential ventilation, with continued RMI
spending in social housing and strong sales into newbuild, including
Mechanical Ventilation with Heat Recovery units with cooling modules. The
introduction of Awaab's Law later in the year is expected to support trends in
residential ventilation, tackling damp and mould hazards in private rented
housing as well as social housing.
o A solid performance was achieved at Adey due to demand for filters and
chemicals associated with an increase in boiler installations of c.8%
year-on-year in the first half.
o The residential RMI market remains subdued, resulting in challenging
market conditions for the Nu-Heat and Omnie underfloor heating brands, however
medium-term growth is still anticipated due to the adoption of air source heat
pumps requiring larger heating emitters. The integration of Omnie, acquired in
2024, and Nu-Heat is continuing with the teams now co-located, enabling
collaboration to scale the business and drive profitable growth as the RMI
market recovers.
o Like-for-like margin improvement (excluding the impact of National
Insurance and National Minimum Wage increases) was achieved through continued
deployment of GBS and automation focused capex investments, particularly in
Adey and Nuaire.
o Whilst Genuit Group is not directly exposed to changes in trade tariffs,
CMS continues to monitor the indirect impact on global supply chain risks,
including the potential impact of the geo-political situation on container
movements and input component availability.
Water Management Solutions
· Water Management Solutions (WMS) revenue of £86.2m increased by
10.4% year-on-year on a reported basis (2.7% increase on a like-for-like
basis), with an underlying operating margin of 4.6% on a reported basis (H1
2024: 10.0%) and 4.5% on a like-for-like basis (H1 2024:10.0%).
o Challenging market conditions persist, with project starts continuing to
be affected by business confidence. However, year-on-year growth has been
achieved in stormwater attenuation products and solutions in both the UK and
the Middle East, offsetting other softness.
o Underlying operating margin has reduced sequentially from 7.3% in H2 2024
to 4.5% like-for-like in H1 2025 due to the effects of low volumes on
operational gearing, the National Insurance and National Minimum Wage cost
increases and a one-off slow moving inventory provision of £0.9m.
o Actions are being implemented to reduce costs and increase efficiency in
WMS without reducing capacity. Together with pricing and productivity
improvements, these will strengthen Business Unit operating margins in the
second half.
o The Sky Garden green roof business acquired in 2024 has been successfully
integrated into the Group and has a high level of order coverage for the
remainder of the year. The operation is achieving efficiency improvements
through the deployment of GBS and the vertical integration with Permavoid's
blue roof solutions. The blue-green roof market is anticipated to grow in
excess of 15% CAGR in coming years due to requirements for stormwater
management, urban re-greening and biodiversity.
o The AMP8 spending cycle is underway with 2025 representing a planning year
ahead of capital programmes with increasing spend from 2026. WMS has strong
engagement with water utility companies, has been awarded its first framework
opportunity and has quoted for a number of early projects. Increasing capacity
of stormwater management systems to prevent overflows is a focus area of spend
in this AMP cycle.
Sustainable Building Solutions
· Sustainable Building Solutions (SBS) revenue of £120.2m increased
by 7.9% year-on-year, with an underlying operating margin of 23.4% on a
reported and like-for-like basis (H1 2024: 21.1%), representing an increase of
230bps.
o Revenue growth includes market share gains associated with the exit of a
competitor for drainage products from the UK market, with moderate
year-on-year growth in new housebuilding offsetting continued softness in RMI
markets.
o Strong growth has been achieved at the Manthorpe and Building Services
businesses, the latter seeing encouraging growth in offsite fabrication
services for commercial and multi-storey buildings. Offsite fabrication and
modern methods of construction are re-emerging as a growth driver, with the
benefit of reducing on-site labour and therefore acting as part of the
solution to construction labour shortages.
o Operating margins continue to benefit from GBS productivity enhancements.
o New housebuilding volumes have been positive year-on-year with low single
digit growth in volumes in the first half, albeit from a low base and with
cautionary outlooks from some major housebuilders heading into the remainder
of 2025 and into 2026.
o The detail of the Future Homes Standard is anticipated to be published
later in the year with lead-in and transitional periods of between 12 and 24
months to be clarified. Some major new housebuilders have already started to
deploy solutions ahead of regulatory requirements and SBS is engaged with
several customers on the development of these solutions. Increases in the
Group's addressable market is anticipated from the rollout of underfloor
heating systems and higher ventilation requirements.
Non-underlying costs
Non-underlying items significantly decreased to £7.1m (2024: £22.3m) before
tax due to a goodwill impairment charge in the prior year and is net of the
proceeds from the sale of a property in the period ending 30 June 2025
resulting in £1.0m profit on disposal. Other costs included non-cash
amortisation of £7.1m (2024: £7.2m).
Non-underlying items include the costs of restructuring of £0.6m. The Group
expects to incur a further £3.7m of restructuring costs in exceptional items
in H2 to complete targeted actions to reduce cost and increase efficiency of
operations. These will generate over £1.9m of savings in the second half and
c.£5.0m of savings on an annualised basis.
Finance Costs
Underlying finance costs reduced slightly to £5.8m (2024: £6.0m), which was
in-line with expectations following similar Revolving Credit Facility (RCF)
borrowings. The Group continued to focus on cash management during H1 2025 to
ensure RCF borrowings are as low as possible to reduce interest impact and
allow optionality for funding growth.
Taxation
The Group's tax charge for the six months ended 30 June 2025 was £7.8m (2024:
£6.9m) which represents an effective tax rate of 24.5% (2024: 45.1%). The
underlying tax rate (underlying tax / underlying profit before tax) has been
provided at the estimated full year rate of 25.5% (2024 full year: 24.5%).
Dividend
The Group intends to pay an interim dividend of 4.2 pence per share (2024: 4.1
pence per share). The Group aims to pay a progressive dividend, based on
dividend cover of 2.0x or greater over the business cycle. This dividend will
be paid on 1 October 2025 to shareholders on the register at the close of
business on 29 August 2025.
Cash Flow and Net Debt
Delivery of strong cash generation remains core to the Group's strategy.
Underlying operating cash conversion was 65.1% (2024: 99.5%), calculated as
underlying operating cashflow (before payments for capital expenditure and
lease liabilities) divided by underlying operating profit before depreciation
and amortisation. This is in-line with management expectations and reflects a
normal phasing. The Group restated underlying operating cash conversion for
both periods, during 2025, to exclude the impact of capex and lease payments.
Full year operating cash conversion is expected to be in the region of 90%,
in-line with our medium-term target.
Capital expenditure was in-line with prior year at £12.5m (2024: £12.6m).
The full year 2025 is expected to be in the range of £30-£35m in-line with
previous guidance, with a primary focus on key, strategic and innovation
projects.
Net debt (including unamortised debt issue costs but excluding the effects of
IFRS 16 capitalisation) decreased to £114.2m at 30 June 2025 (30 June 2024:
£122.5m, 31 December 2024: £101.6m). Leverage was in-line with expectations
at 1.0 times pro-forma EBITDA (30 June 2024: 1.1 pro-forma EBITDA). With
continued strong cash generation expected, the Group's balance sheet provides
an opportunity to deploy capital for disciplined bolt-on M&A.
Going Concern
The Group continues to meet its day-to-day working capital and other funding
requirements through a combination of long-term funding and cash deposits. The
Group's bank financing facilities consists of a seven-year private placement
loan note of £25.0m with an uncommitted shelf facility of £125.0m payable in
August 2029 and a £350.0m Sustainability-Linked revolving credit facility
with an uncommitted 'accordion' of £50.0m available until August 2026. The
Group exercised its option to extend the RCF through to August 2027 with a
limit of £310.3m and then through to August 2028 with a limit of £285.6m,
subject to covenant headroom. At 30 June 2025, the Group had available
£225.0m of undrawn committed borrowing facilities in respect of which all
conditions precedent had been met. The Directors are satisfied that the Group
has sufficient liquidity and covenant headroom to withstand reasonable
variances to the base forecast, as well as the downside scenarios. In
addition, the Directors have noted the range of possible additional liquidity
options available to the Group, should they be required.
As a result, the Directors have satisfied themselves that the Group has
adequate financial resources to continue in operational existence for a period
of at least the next 18 months. Accordingly, they continue to adopt the going
concern basis in preparing the condensed set of consolidated financial
statements.
Principal Risks and Uncertainties
The Board continually assesses and monitors the key risks of the business and
Genuit has developed a risk management framework to identify, report, and
manage its principal risks and uncertainties. The principal risks and
uncertainties that could have a material impact on the Group's performance and
prospects, and the mitigating activities which are aimed at reducing the
impact or likelihood of a major risk materialising, have not changed from
those which are set out in detail in the principal risks and uncertainties
section of the 2024 Annual Report and Accounts.
These principal risks and uncertainties include macro-economic and political
conditions; climate change; raw materials supply and pricing; information
systems disruption; reliance on key customers and recruitment and retention of
key personnel.
A copy of the 2024 Annual Report and Accounts is available on the Company's
website www.genuitgroup.com (http://www.Genuitgroup.com)
(2) (Underlying operating cash conversion has been restated for both periods
to a pre capex and lease payments basis, previously calculated as underlying
operating cashflow (after payments for capital expenditure excluding
non-underlying proceeds of sale and lease liabilities), as the Group believes
this is a more appropriate measure of cash conversion as it demonstrates the
Group's working capital cash management efficiency before capital investment
and allows for alignment with the Groups strategic investment profile in the
medium-term.)
Forward-Looking Statements
This report contains various forward-looking statements that reflect
management's current views with respect to future events and financial and
operational performance. These forward-looking statements involve known and
unknown risks, uncertainties, assumptions, estimates and other factors, which
may be beyond the Group's control, and which may cause actual results or
performance to differ materially from those expressed or implied from such
forward-looking statements. All statements (including forward-looking
statements) contained herein are made and reflect knowledge and information
available as of the date of preparation of this report and the Group disclaims
any obligation to update any forward-looking statements, whether as a result
of new information, future events or results or otherwise. There can be no
assurance that forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue reliance on
forward-looking statements due to the inherent uncertainty therein. Nothing in
this report should be construed as a profit forecast.
Directors' Responsibility Statement
We confirm that to the best of our knowledge:
· The condensed set of consolidated financial statements has been
prepared in accordance with UK-adopted International Accounting Standard (IAS)
34, Interim Financial Reporting; and
· The Interim Management Report includes a fair review of the
information required by:
(a) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an
indication of important events that have occurred during the first six months
of the financial year and their impact on the condensed set of consolidated
financial statements; and a description of the principal risks and
uncertainties for the remaining six months of the financial year; and
(b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being
related party transactions that have taken place in the first six months of
the current financial year and that have materially affected the financial
position or performance of the entity during that period; and any changes in
the related party transactions described in the last Annual Report and
Accounts that could do so.
This report was approved by the Board of Directors on 11 August 2025 and is
available on the Company's website www.genuitgroup.com
(http://www.Genuitgroup.com) .
The Directors of the Company are:
Kevin Boyd Chair
Joe Vorih Chief Executive Officer
Tim Pullen Chief Financial Officer
Lisa Scenna Senior Independent Director
Louise Brooke-Smith Non-Executive Director
Shatish Dasani Non-Executive Director
Bronagh Kennedy Non-Executive Director
By order of the Board:
J M Vorih T N Pullen
Chief Executive Officer Chief Financial Officer
Interim Group Income Statement
for the six months ended 30 June 2025 (unaudited)
Six months ended 30 June 2025 Six months ended 30 June 2024
Notes Underlying Non-underlying Total Underlying Non-underlying Total
£m £m £m £m £m £m
297.8 - 297.8 272.4 - 272.4
Revenue 3
Cost of sales (167.1) - (167.1) (150.5) 1.2 (149.3)
Gross profit 130.7 - 130.7 121.9 1.2 123.1
Selling and distribution costs (40.4) - (40.4) (36.7) - (36.7)
Administration expenses (44.8) - (44.8) (40.7) (3.9) (44.6)
Trading profit 45.5 - 45.5 44.5 (2.7) 41.8
Amortisation of intangible assets (0.9) (7.1) (8.0) (0.9) (7.2) (8.1)
Impairment of goodwill - - - - (12.4) (12.4)
Operating profit 3 44.6 (7.1) 37.5 43.6 (22.3) 21.3
Finance costs 3, 5 (5.8) - (5.8) (6.0) - (6.0)
Profit before tax 38.8 (7.1) 31.7 37.6 (22.3) 15.3
Income tax 6 (9.9) 2.1 (7.8) (9.9) 3.0 (6.9)
Profit for the period attributable to the owners of the parent company 28.9 (5.0) 23.9 27.7 (19.3) 8.4
Basic earnings per share (pence) 7 9.6 3.4
Diluted earnings per share (pence) 7 9.5 3.4
Dividend per share (pence) - interim 8
4.2 4.1
Non-underlying items are presented separately and are detailed in Note 4.
Interim Group Statement of Comprehensive Income
for the six months ended 30 June 2025 (unaudited)
Six months ended 30 June 2025 Six months ended 30 June 2024
£m £m
Profit for the period attributable to the owners of the parent company 23.9 8.4
Other comprehensive income:
Items which may be reclassified subsequently to the income statement:
Exchange differences on translation of foreign operations 0.1 (0.1)
Effective portion of changes in fair value of interest rate derivatives 0.4 0.2
Other comprehensive income for the period net of tax 0.5 0.1
Total comprehensive income for the period attributable to the owners of the 24.4 8.5
parent company
Interim Group Balance Sheet
at 30 June 2025 (unaudited)
30 June 30 June 31 December
Notes 2025 2024 2024
£m £m £m
Non-current assets
Property, plant and equipment 183.6 179.3 183.7
Right-of-use assets 25.1 27.2 27.0
Intangible assets 9 574.2 577.4 580.2
Total non-current assets 782.9 783.9 790.9
Current assets
Inventories 68.8 68.0 73.5
Trade and other receivables 102.6 83.7 81.8
Income tax receivable 3.5 2.3 3.2
Cash and cash equivalents 34.9 25.8 43.6
Derivative financial instruments 0.1 0.2 -
Assets held-for-sale - 15.0 -
Total current assets 209.9 195.0 202.1
Total assets 992.8 978.9 993.0
Current liabilities
Trade and other payables (121.0) (117.0) (128.2)
Lease liabilities 11 (8.0) (6.6) (7.4)
Liabilities held-for-sale - (4.0) -
Provisions - (4.9) -
Total current liabilities (129.0) (132.5) (135.6)
Non-current liabilities
Loans and borrowings 11 (149.1) (148.3) (145.2)
Lease liabilities 11 (17.6) (21.3) (20.2)
Deferred income tax liabilities (48.5) (49.7) (49.0)
Total non-current liabilities (215.2) (219.3) (214.4)
Total liabilities (344.2) (351.8) (350.0)
Net assets 648.6 627.1 643.0
Capital and reserves
Equity share capital 0.2 0.2 0.2
Share premium 93.6 93.6 93.6
Capital redemption reserve 1.1 1.1 1.1
Hedging reserve 0.3 0.3 (0.1)
Foreign currency retranslation reserve (0.1) (0.2) (0.2)
Other reserves 116.5 116.5 116.5
Retained earnings 437.0 415.6 431.9
Total equity 648.6 627.1 643.0
Interim Group Statement of Changes in Equity
for the six months ended 30 June 2025 (unaudited)
Equity share capital Capital redemption reserve Foreign currency retranslation reserve
£m Share premium £m Hedging reserve £m Other reserves Retained earnings Total equity
£m £m £m £m £m
Six months ended 30 June 2025
Opening balance 0.2 93.6 1.1 (0.1) (0.2) 116.5 431.9 643.0
Profit for the period - - - - - - 23.9 23.9
Other comprehensive income - - - 0.4 0.1 - - 0.5
Total comprehensive income for the period - - - 0.4 0.1 - 23.9 24.4
Dividends paid - - - - - - (20.8) (20.8)
Share-based payments charge - - - - - - 1.7 1.7
Share-based payments settled - - - - - - 0.1 0.1
Share-based payments excess tax benefit - - - - - - 0.2 0.2
Closing balance 0.2 93.6 1.1 0.3 (0.1) 116.5 437.0 648.6
Six months ended 30 June 2024
Opening balance 0.2 93.6 1.1 0.1 (0.1) 116.5 425.2 636.6
Profit for the period - - - - - - 8.4 8.4
Other comprehensive income - - - 0.2 (0.1) - - 0.1
Total comprehensive income for the period - - - 0.2 (0.1) - 8.4 8.5
Dividends paid - - - - - - (20.6) (20.6)
Share-based payments charge - - - - - - 1.6 1.6
Share-based payments settled - - - - - - 0.8 0.8
Share-based payments excess tax benefit - - - - - - 0.2 0.2
Closing balance 0.2 93.6 1.1 0.3 (0.2) 116.5 415.6 627.1
Notes to the Interim Group Cash Flow Statement
for the six months ended 30 June 2025 (unaudited)
Notes Six months ended 30 June 2025 Six months ended 30 June 2024 Year ended 31 December 2024
£m £m £m
Operating activities
Cash generated from operations 12 34.3 46.8 115.5
Income tax paid (7.6) (3.5) (10.4)
Net cash flows from operating activities 26.7 43.3 105.1
Investing activities
Settlement of deferred and contingent consideration 10 - (1.6) (1.6)
Acquisition of businesses net of cash at acquisition - - (5.2)
Interest received 0.6 - -
Proceeds from disposal of assets held-for-sale - - 4.9
Proceeds from disposal of property, plant and equipment 0.7
2.0 5.2
Purchase of property, plant and equipment (11.0) (11.5) (25.6)
Patent and development costs expenditure (1.5) (1.1) (1.1)
Net cash flows from investing activities (9.9) (9.0) (27.9)
Financing activities
Drawdown of bank loan 70.0 40.0 69.4
Repayment of bank loan (66.4) (35.0) (68.0)
Interest paid (4.6) (5.8) (11.4)
Dividends paid (20.8) (20.6) (30.8)
Proceeds from exercise of share options 0.1 0.8 0.8
Settlement of lease liabilities (3.9) (4.9) (10.6)
Net cash flows from financing activities (25.6) (25.5) (50.6)
Net change in cash and cash equivalents (8.8) 8.8 26.6
Cash and cash equivalents - opening balance 43.6 17.0 17.0
Net foreign exchange difference 0.1 - -
Cash and cash equivalents - closing balance 34.9 25.8 43.6
Notes to the Interim Group Financial Statements
for the six months ended 30 June 2025 (unaudited)
1. Basis of preparation
Genuit Group plc is incorporated in the UK. The condensed set of consolidated
financial statements have been prepared in accordance with the Disclosure
Guidance and Transparency Rules of the Financial Conduct Authority and
UK-adopted IAS 34, Interim Financial Reporting.
The annual financial statements will be prepared under UK-adopted IAS
(UK-adopted IFRSs).
As required by the Disclosure Guidance and Transparency Rules of the Financial
Conduct Authority, the condensed set of consolidated financial statements have
been prepared applying the accounting policies and presentation that were
applied in the preparation of the Group's published consolidated financial
statements for the year ended 31 December 2024. These statements do not
include all the information required for full annual consolidated financial
statements and should be read in conjunction with the full Annual Report and
Accounts for the year ended 31 December 2024.
The interim condensed consolidated financial statements do not constitute
statutory financial statements as defined in section 435 of the Companies Act
2006. The financial information for the preceding year is based on the
statutory financial statements for the year ended 31 December 2024. Those
accounts, upon which the auditors issued an unqualified opinion have been
delivered to the Registrar of Companies. The report of the auditors did not
include a reference to any matters to which the auditors drew attention by way
of emphasis without qualifying their report and did not contain a statement
under Section 498 (2) or (3) of the Companies Act 2006. The condensed interim
consolidated financial statements to 30 June 2024 and 30 June 2025 have been
subject to an Interim Review in accordance with ISRE 2410 by the Company's
Auditor.
There were no accounting standards or interpretations that have become
effective in the current reporting period which had an impact on disclosures,
financial position or performance.
Going Concern
The condensed set of consolidated financial statements are prepared on a going
concern basis. The Directors have made enquiries into the adequacy of the
Group's financial resources, through a review of the Group's budget and
medium-term financial plan, including cash flow forecasts. The Group has
modelled the base forecast in which, over the 18 months ending 31 December
2026, sales volumes grow in-line with external construction industry
forecasts. The Directors have considered the impact of climate-related matters
on the going concern assessment and it is not expected to have a significant
impact on the Group's going concern.
At 30 June 2025, the Group had available £225.0m of undrawn committed
borrowing facilities in respect of which all conditions precedent had been
met. The Group's bank financing facilities consists of a seven-year private
placement loan note of £25.0m with an uncommitted shelf facility of £125.0m
payable in August 2029 and a £350.0m Sustainability-Linked revolving credit
facility with an uncommitted 'accordion' of £50.0m available until August
2026. The Group exercised its option to extend the RCF through to August 2027
with a limit of £310.3m and then through to August 2028 with a limit of
£285.6m, subject to covenant headroom. The Directors are satisfied that the
Group has sufficient liquidity and covenant headroom to withstand reasonable
variances to the base forecast, as well as the downside scenarios. In
addition, the Directors have noted the range of possible additional liquidity
options available to the Group, should they be required.
As a result, the Directors have satisfied themselves that the Group has
adequate financial resources to continue in operational existence for a period
of at least the next 18 months. Accordingly, they continue to adopt the going
concern basis in preparing the condensed set of consolidated financial
statements.
Related Party Transactions
There have been no significant related party transactions in the period to 30
June 2025.
Alternative performance measures (APMs)
Five non-statutory measures have been used in preparing the consolidated
financial statements:
· Underlying operating profit and earnings measures exclude certain
non-underlying items (which are detailed in Note 4) and, where relevant, the
tax effect of these items. The Directors consider that these measures provide
a better and more consistent indication of the Group's underlying financial
performance and more meaningful comparison with prior and future periods to
assess trends in the Group's financial performance.
· Like-for-like revenue and like-for-like underlying operating profit
represents the Group's underlying performance for comparable business
excluding the impact of any acquisitions or disposals in the current and prior
period.
· Underlying operating cash conversion is defined as cash generated
from operations, adjusted for non-underlying cash items, after movement in net
working capital divided by underlying operating profit before depreciation and
amortisation. This has been redefined in the year to exclude the impact of
capex and lease payments and prior year periods have been restated.
· Leverage is defined as net debt divided by pro-forma EBITDA (both
are reconciled in note 11). Net debt within the leverage calculation is
defined as loans and borrowings net of unamortised issue costs less cash and
cash equivalents, excluding the effects of IFRS 16.
· Pro-forma EBITDA is defined as pre-IFRS 16 underlying operating
profit before depreciation, amortisation and share-based payment charges, for
the 12 months preceding the balance sheet date, adjusted where relevant, to
include a full year of EBITDA from acquisitions made during those 12 months.
2. Financial risks, estimates, assumptions and judgements
The preparation of the condensed set of consolidated financial statements
requires management to make judgements, estimates and assumptions that affect
the application of accounting policies and the reported amounts of assets and
liabilities, income and expenses. Actual results may differ from estimates.
In preparing the condensed set of consolidated financial statements, the
significant judgements made by management in applying the Group's accounting
policies and the key sources of estimation uncertainty were the same as those
that applied to the consolidated financial statements as at and for the year
ended 31 December 2024.
3. Segment information
From 1 January 2023, reporting segments have been aligned with the Group's
Sustainable Solutions for Growth strategy and re-organised into three
strategic Business Units - Climate Management Solutions (CMS), Water
Management Solutions (WMS) and Sustainable Building Solutions (SBS). The
reporting segments are organised based on the nature of the end markets
served. Inter-segment sales are on an arm's length basis in a manner similar
to transactions with third parties. Other segments relates to Polypipe Italia
SRL, which is currently not reported as part of the Group's strategic Business
Units.
Climate Water Sustainable
Management Management Building Other Total
Six months ended 30 June 2025 Solutions Solutions Solutions
£m £m £m £m £m
Segmental revenue 88.1 88.7 128.9 4.5 310.2
Inter segment revenue (0.5) (2.5) (8.7) (0.7) (12.4)
Revenue* 87.6 86.2 120.2 3.8 297.8
Underlying operating profit** 12.1 4.0 28.1 0.4 44.6
Non-underlying items - segmental (6.6) (0.3) (1.4) - (8.3)
Non-underlying items - Group - - - 1.2 1.2
Segmental operating profit 5.5 3.7 26.7 1.6 37.5
Finance costs (5.8)
Profit before tax 31.7
Climate Water Sustainable
Management Management Building Other Total
Six months ended 30 June 2024 Solutions Solutions Solutions
£m £m £m £m £m
Segmental revenue 78.8 81.2 119.9 4.6 284.5
Inter segment revenue (0.2) (3.1) (8.5) (0.3) (12.1)
Revenue* 78.6 78.1 111.4 4.3 272.4
Underlying operating profit** 11.9 7.8 23.5 0.4 43.6
Non-underlying items - segmental (18.4) 0.7 0.1 - (17.6)
Non-underlying items - Group - - - (4.7) (4.7)
Segmental operating profit / (loss) (6.5) 8.5 23.6 (4.3) 21.3
Finance costs (6.0)
Profit before tax 15.3
* The other revenue of £3.8m (2024: £4.3m) relates to Polypipe Italia SRL
which does not form part of the Group's strategic Business Units.
** Underlying operating profit is stated before non-underlying items as
defined in the Group Accounting Policies in the Annual Report and Accounts and
is the measure of segmental profit used by the Group's CODM. Details of the
non-underlying items of £7.1m (2024: £22.3m) are detailed in Note 4.
Geographical analysis
Revenue by destination Six months ended 30 June 2025 Six months ended 30 June 2024
£m £m
UK 266.3 241.5
Rest of Europe 18.0 17.0
Rest of World 13.5 13.9
Total - Group 297.8 272.4
4. Non-underlying items
Non-underlying items comprised:
Six months ended 30 June 2025 Six months ended 30 June 2024
Gross Tax Net Gross Tax Net
£m £m £m £m £m £m
Cost of sales: - - - (1.2) 0.2 (1.0)
Employment matters
Administration expenses: Acquisition costs 0.2 (0.1) 0.1 0.4 - 0.4
Product liability claim - - - - (0.2) (0.2)
Restructuring costs 0.6 (0.1) 0.5 0.2 - 0.2
SaaS configuration 0.2 (0.1) 0.1 0.5 (0.1) 0.4
Profit on disposal of property plant and equipment (1.0) - (1.0) (1.5) - (1.5)
Software supplier dispute - - - 4.3 (1.1) 3.2
Amortisation of intangible assets 7.1 (1.8) 5.3 7.2 (1.8) 5.4
Impairment of Goodwill - - - 12.4 - 12.4
Total non-underlying items 7.1 (2.1) 5.0 22.3 (3.0) 19.3
Restructuring costs incurred in both periods are in relation to the
reorganisation of the Group. The Group had finished its review of its
operating footprint which resulted in the closure of four sites, and other
costs in the prior year. A new project was undertaken in the current year
which was separate to the original review, resulting in further restructuring
costs in the period.
During the year, as part of a site closure, a property was disposed of with
proceeds of £1.5m resulting in a £1.0m gain on disposal.
Amortisation charged in both periods relates to intangible assets arising on
business combinations.
5. Finance costs
Six months ended 30 June 2025 Six months ended 30 June 2024
£m £m
Interest on bank loan 4.5 4.8
Debt issue cost amortisation 0.4 0.5
Unwind of discount on lease liabilities 0.9 0.7
5.8 6.0
6. Income tax
Tax has been provided on the profit before tax at the estimated effective rate
for the full year of 25.5% (2024 full year: 24.5%).
Six months ended 30 June 2025 Six months ended 30 June 2024
£m £m
Current income tax:
UK income tax 8.1 7.3
Overseas income tax 0.2 0.2
Current income tax 8.3 7.5
Adjustment in respect of prior years - -
Total current income tax 8.3 7.5
Deferred income tax:
Origination and reversal of timing differences (0.5) (0.6)
Effects of changes in income tax rates - -
Deferred income tax (0.5) (0.6)
Adjustment in respect of prior years - -
Total deferred income tax (0.5) (0.6)
Total tax expense reported in the income statement 7.8 6.9
The Group's tax charge for the six months ended 30 June 2025 of £7.8m (2024:
£6.9m) represents an effective tax rate of 24.5% (2024: 45.1%). Tax on
underlying profit before tax was 25.5%.
7. Earnings per share
Basic earnings per share amounts are calculated by dividing profit for the
period attributable to the owners of the parent company by the weighted
average number of ordinary shares outstanding during the period. The diluted
earnings per share amounts are calculated by dividing profit for the period
attributable to the owners of the parent company by the weighted average
number of ordinary shares outstanding during the period plus the weighted
average number of potential ordinary shares that would be issued on the
conversion of all the dilutive share options into ordinary shares.
The calculation of basic and diluted earnings per share is based on the
following:
Six months ended 30 June 2025 Six months ended 30 June 2024
Weighted average number of ordinary shares for the purpose of basic earnings 248,591,007 248,389,452
per share
Effect of dilutive potential ordinary shares 2,250,511 1,928,887
Weighted average number of ordinary shares for the purpose of diluted earnings 250,841,518 250,318,339
per share
Underlying earnings per share is based on the result for the period after tax
excluding the impact of non-underlying items of £5.0m (2024: £19.3m). The
Directors consider that this measure provides a better and more consistent
indication of the Group's underlying financial performance and more meaningful
comparison with prior and future periods to assess trends in the Group's
financial performance. The underlying earnings per share is calculated as
follows:
Six months ended 30 June 2025 Six months ended 30 June 2024
Underlying profit for the period attributable to the owners of the parent 28.9 27.7
company (£m)
Underlying basic earnings per share (pence) 11.6 11.2
Underlying diluted earnings per share (pence) 11.5 11.1
8. Dividends
The Directors have proposed an interim dividend for the current year of 4.2
pence per share which equates to £10.5m.
9. Intangible assets
The carrying amount of goodwill and other intangible assets is as follows:
Goodwill Patents Brand Customer Licences Total
£m £m names relationships £m Development £m
£m £m costs
£m
Cost
At 1 January 2025 475.9 40.9 66.5 114.3 0.8 5.6 704.0
Additions - 0.2 0.5 - - 0.8 1.5
At 30 June 2025 475.9 41.1 67.0 114.3 0.8 6.4 705.5
Amortisation and impairment losses
At 1 January 2025 24.4 26.5 35.3 35.4 0.6 1.6 123.8
Charge for the period - 1.8 2.5 3.0 - 0.2 7.5
At 30 June 2025 24.4 28.3 37.8 38.4 0.6 1.8 131.3
Net book value
At 30 June 2025 451.5 12.8 29.2 75.9 0.2 4.6 574.2
At 31 December 2024 451.5 14.4 31.2 78.9 0.2 4.0 580.2
Brand names and customer relationships which arise from business combinations
are amortised over their estimated useful lives of five to twenty years. There
is one existing brand that has a significant carrying value: Adey (£20.3m)
with an estimated useful life of 17 years. Customer relationships that have a
significant carrying value are Adey's relationships with key customers
(£66.0m) with an estimated useful life of between nine and 17 years and
Manthorpe's (£5.0m) with an estimated useful life of 9 years.
Impairment testing of goodwill
Goodwill is not amortised but is subject to annual impairment testing (at 31
December) or when circumstances indicate that the carrying value may be
impaired. Goodwill has been allocated for impairment testing purposes to a
number of cash-generating units (CGUs) which represent the lowest level in the
Group at which goodwill is monitored for internal management purposes. The key
assumptions used to determine the recoverable amount for the different CGU's
were disclosed in the annual consolidated financial statements for the year
ended 31 December 2024.
At 30 June 2025, an assessment was made to identify any indicators of
impairment impacting the Group's CGUs. Due to the subdued RMI market,
resulting in challenging conditions in the underfloor heating market,
indicators of impairment were identified in the Nu-Heat CGU. As such, an
impairment test was performed by comparing the carrying amount of the Nu-Heat
CGU to its value-in-use. This testing determined that the value-in-use was
sufficient to support the CGUs carrying value. The Group also applied
sensitivities to assess whether any reasonably possible changes in assumptions
could cause an impairment that would be material to these interim consolidated
financial statements. The application of these sensitivities did not indicate
any impairment of goodwill was reasonably possible for the Nu-Heat CGU at 30
June 2025.
The Group did not identify indicators of impairment in the other CGUs and is
satisfied that their recoverable amounts have sufficient headroom to support
their carrying values at 30 June 2025.
10. Acquisitions
Acquisition-related cash flows comprised:
Six months ended 30 June 2025 Six months Year ended
£m ended 30 June 2024 31 December
£m 2024
£m
Operating cash flows - Settlement of acquisition costs
Sky Garden - - 0.3
Omnie & Timoleon (Genuit UFH) - - 0.1
Plura - 6.5 6.5
Other 0.3 - 0.7
0.3 6.5 7.6
Six months ended 30 June 2025 Six months Year ended
£m ended 30 June 2024 31 December
£m 2024
£m
Investing cash flows - Settlement of deferred and contingent consideration - 1.6 1.6
Plura
- 1.6 1.6
Six months ended 30 June 2025 Six months Year ended
£m ended 30 June 2024 31 December
£m 2024
£m
Investing cash flows - Acquisition of businesses net of cash at acquisition - - 2.2
Sky Garden
Omnie & Timoleon (Genuit UFH) - - 3.0
- - 5.2
11. Analysis of net debt
30 June 30 June 31 December 2024
2025 2024 £m
£m £m
Cash and cash equivalents 34.9 25.8 43.6
Current loans and borrowings
Lease liabilities 8.0 6.6 7.4
Non-current loans and borrowings
Bank loan - principal 125.0 125.0 121.5
- unamortised debt issue costs (0.9) (1.7) (1.3)
Loan notes 25.0 25.0 25.0
Lease liabilities 17.6 21.3 20.2
166.7 169.6 165.4
Net debt 139.8 150.4 129.2
Net debt (excluding lease liabilities) 114.2 122.5 101.6
On 10 August 2022, the Group renewed its banking facilities and entered a
Sustainability-Linked revolving credit facility agreement for £350.0m with a
£50.0m uncommitted accordion facility expiring in August 2026 with the option
to extend annually for two additional years. The Group exercised the option to
extend for both years and will remain in place with a facility of £310.3m to
August 2027 and then £285.6m to August 2028. The group also entered into a
separate agreement on 10 August 2022 for private placement loan notes of
£25.0m with an uncommitted £125.0m shelf facility repayable in August 2029.
Interest is payable on the bank loan at SONIA plus an interest margin ranging
from 1.20% to 2.80% which is dependent on the Group's ESG targets and the
Group's leverage (net debt excluding lease liabilities as a multiple of
pro-forma EBITDA) and reduces as the Group's leverage reduces. The interest
margin at 30 June 2025 was 1.425% (2024: 1.625%). Pro-forma EBITDA at 30 June
2025 was £116.8m (2024: £112.4m) and is defined as pre-IFRS 16 underlying
operating profit before depreciation, amortisation and share-based payment
charges, for the 12 months preceding the Balance Sheet date adjusted where
relevant to include a full year of EBITDA from acquisitions made during those
12 months.
30 June 30 June 31 December
2025 2024 2024
£m £m £m
Pro-forma EBITDA (12 months preceding the balance sheet)
Underlying operating profit 93.2 90.7 92.2
Depreciation of property, plant and equipment 21.8 20.1 19.2
Amortisation of internally generated intangible assets 0.7 1.1 0.7
Unwind of discount on lease liabilities (1.7) (1.6) (1.6)
Share-based payments charge 3.0 2.1 2.9
117.0 112.4 113.4
EBITDA from acquisitions (0.2) - (0.7)
116.8 112.4 112.7
At 30 June 2025, the Group had available, subject to covenant headroom,
£225.0m (2024: £225.0m) of undrawn committed borrowing facilities in respect
of which all conditions precedent had been met.
12. Reconciliation of profit before tax to cash generated from
operations
Notes Six months ended 30 June 2025 Six months ended 30 Year ended 31 December 2024
£m June 2024 £m
£m
Operating activities
Profit before tax 31.7 15.3 46.3
Finance costs 5 5.8 6.0 12.9
Operating profit 37.5 21.3 59.2
Non-cash items:
Profit on disposal of property, plant and equipment 0.1 (0.1) -
Software supplier dispute (underlying) - - (0.9)
Employment matters (underlying) - - (0.5)
Research and development expenditure credit (0.8) (0.9) (1.5)
Other credit (0.4) - -
Non-underlying items:
- amortisation of intangible assets arising on business combinations 4, 9 7.1 7.2 14.4
- impairment of goodwill arising on business combinations 9 - 12.4 12.4
- provision for acquisition costs 4 0.2 0.4 1.1
- provision for restructuring costs 4 0.6 0.2 1.8
- provision for SaaS configuration 4 0.2 0.5 1.1
- provision for product liability claim 4 - - 0.1
- provision for software supplier dispute 4 - 4.3 4.3
- provision for employment matters 4 - (1.2) (1.1)
- gain on sale of property 4 (1.0) (1.5) (1.1)
Depreciation of property, plant and equipment (underlying) 10.3 7.7 19.2
Depreciation of right-of-use assets 3.5 3.1 7.1
Amortisation of internally generated intangible assets 9 0.4 0.9 0.7
Share-based payments 1.7 1.6 2.9
Cash items:
- settlement of restructuring costs (0.2) (1.3) (2.2)
- settlement of acquisition costs 10 (0.3) (6.5) (7.6)
- settlement of supplier dispute (3.9) - -
- settlement of other exceptional costs - (1.0) (2.9)
Operating cash flows before movement in working capital 55.0 47.1 106.5
Receivables (20.8) (9.7) (5.1)
Payables (3.0) 6.2 11.0
Inventories 3.1 3.2 3.1
Cash generated from operations 34.3 46.8 115.5
INDEPENDENT REVIEW REPORT TO GENUIT GROUP PLC
Conclusion
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
June 2025 which comprises the Interim Group Income Statement, the Interim
Group Statement of Comprehensive Income, the Interim Group Balance Sheet, the
Interim Group Statement of Changes in Equity, the Interim Group Cashflow
Statement and the related Notes to the Interim Group Financial Statements
Notes 1 to 12. We have read the other information contained in the half yearly
financial report and considered whether it contains any apparent misstatements
or material inconsistencies with the information in the condensed set of
financial statements.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 June 2025 is not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34 and the Disclosure Guidance and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review
Engagements 2410 (UK) "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" (ISRE) issued by the Financial
Reporting Council. A review of interim financial information consists of
making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does not enable
us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an audit
opinion.
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with UK adopted international accounting standards. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with UK adopted International
Accounting Standard 34, "Interim Financial Reporting".
Conclusions Relating to Going Concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for Conclusion section of this report,
nothing has come to our attention to suggest that management have
inappropriately adopted the going concern basis of accounting or that
management have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
this ISRE, however future events or conditions may cause the entity to cease
to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible
for assessing the company's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to
liquidate the company or to cease operations, or have no realistic alternative
but to do so.
Auditor's Responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the
Company a conclusion on the condensed set of financial statements in the
half-yearly financial report. Our conclusion, including our Conclusions
Relating to Going Concern, are based on procedures that are less extensive
than audit procedures, as described in the Basis for Conclusion paragraph of
this report.
Use of our report
This report is made solely to the company in accordance with guidance
contained in International Standard on Review Engagements 2410 (UK) "Review of
Interim Financial Information Performed by the Independent Auditor of the
Entity" issued by the Financial Reporting Council. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other
than the company, for our work, for this report, or for the conclusions we
have formed.
Ernst & Young LLP
Leeds
11 August 2025
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