Genuit Group Reports Strong Financial Performance
Genuit Group reports strong financial performance for H1 2023, remains optimistic about future prospects. Company expects top-end operating profit for full year 2023.
Genuit Group, a leading provider of water, climate, and ventilation products in the UK, has announced its financial results for the first half of 2023. Despite facing challenges in the residential new build and repair, maintenance, and improvement markets, the company remains optimistic about its future prospects.
Pretax Profit and Revenue
During the six months ended June 30, Genuit Group's pretax profit stood at £29.7 million ($37.7 million), compared to £32.9 million in the same period last year. The decline was mainly attributed to higher finance costs. However, the company's underlying operating profit remained steady at £47.0 million, slightly down from £47.4 million in the previous year.
The company's revenue for the first half of 2023 decreased to £304.8 million from £318.0 million. This decline was primarily driven by lower volumes; however, it was partially offset by successful product launches and effective price and cost management strategies.
Despite the challenging market conditions, Genuit Group voiced confidence in its ability to deliver strong financial performance for the full year of 2023. Chief Executive Joe Vorih stated, "We upgraded market expectations in May and expect group full-year operating profit to be at the top end of current full-year analyst expectations." The company remains optimistic about its momentum going into the second half of the year.
Based on a company-compiled consensus, Genuit Group's underlying operating profit is projected to range between £85 million and £89 million, with a median estimate of £88 million.
The company declared a flat interim dividend at 4.1 pence per share, reflecting its commitment to providing value to shareholders.