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Revenue for the six months to 30th June 2024 was £272.4m, down 10.6% from £304.8m in the same period last year. Profit before tax fell by 48.5% to £15.3m (2023: £29.7m).
However, using alternative performance measures the company – previously known as Polypipe – said that it had demonstrated “continued strategic progress” in the first half of this year by increasing its underlying operating margin by 60 basis points to 16% from 15.4% in the first half of 2023.
Genuit said that it has achieved this by strategic action taken by the board, including a business simplification programme, disciplined cost management and operating efficiencies.
Trading conditions are unlikely to improved much this year, the company said, due to low volumes across the house-building, commercial construction and repair, maintenance & improvement markets. Nevertheless, Genuit said it is well positioned for “the expected market recovery”.
Genuit chief executive Joe Vorih said: "Whilst the market remains subdued in 2024, the group demonstrated continued operating margin improvement in the first half over prior year, as the benefits of our strategic actions continue. I'm particularly pleased at the momentum building in the embedding of the Genuit Business System through our businesses. I'm also delighted to welcome new colleagues from our two recent acquisitions into the group as we advance our Sustainable Solutions for Growth strategy.
He continued: "As we look forward into the second half, we currently anticipate these market conditions to remain, offset by continued operational and strategic progress. We continue to expect full year underlying operating profit to be within the range of analyst forecasts.
“The Genuit Group is exceptionally well positioned to benefit from eventual market recovery, with business simplification complete, at least 20% available capacity to ramp production and improved operational gearing providing confidence in medium term targets."
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