Genuit Group PLC (LSE:GEN), the company formerly known as Polypipe, reported lower sales for the first quarter but kept its full-year earnings outlook unchanged as profit margins improved.
Ahead of its annual shareholder meeting later today, the maker of drainage, air conditioning and heating systems revealed revenues fell 8.6% in the first four months of the year as the market has been a bit soft, as expected.
On the plus side, it said underlying operating profit margins continued to improve, so the board is keeping full-year earnings expectations unchanged.
Two more site closures were completed, meaning its business simplification programme is completed, with £4.8 million of cash realised from selling freehold sales.
CEO Joe Vorih says: "Genuit continued to make encouraging strategic and operational progress in the first four months of 2024, despite ongoing market softness, and our expectations for the full year are unchanged."
He reckons Genuit is "in a strong position to benefit from the normalisation of volumes as markets recover".
Of the group's three divisions, the largest, Sustainable Building Solutions, saw revenue fall 10.6% amidst continued softness in both new housebuilding and the repair and maintenance markets, though margin improved slightly; Climate Management Solutions revenues were down 2.5% but a "marginal improvement" was seen in operating margin; and Water Management Solutions sales fell 12.1% with flat margin.
"However, the volume and intensity of rainfall in key markets continues to underline the need for stormwater attenuation solutions and acts as a structural driver for future growth," Genuit says.