Genuit Group PLC (LSE:GEN) dipped 3.7% on Tuesday after announcing profit had taken a hit over the first half of the year on “subdued” conditions in the construction sector.
Underlying pre-tax profit fell 6.7% to £37.6 million over the six months to June, the FTSE 250-listed air conditioning and heating systems maker reported on Tuesday.
This was as revenue dipped by 10.7% to £272.4 million on negative trends across the market.
Though progress was made on margins, which climbed from 15.4% to 16.0%, AJ Bell analyst Russ Mould said the company was “ultimately [...] reliant on an improvement in the wider backdrop”.
Jefferies analysts added the poorer results “should not be a surprise” given similar comments from sector peers, with the bank reiterating a ‘buy’ rating for Genuit.
“Management retaining comfort in 2024 consensus and delivering first half margin [improvement] should showcase the ability to offset lacklustre demand with a sensible strategy,” Jefferies added.
Shares fell 3.7% to 448p following the results.