Genuit Group PLC (LSE:GEN) said revenue for the four months ended 30 April 2026 fell 0.4% to £198.5 million from £199.3 million a year earlier as weaker market volumes and rising input costs weighed on trading.
In a trading update, the building products manufacturer reported an 8.7% decline in like-for-like revenue during the period. Wet weather in January and February reduced construction site activity, while the conflict in the Middle East increased polymer and freight costs from March onwards.
Chief executive Joe Vorih said: “The Group has navigated a challenging trading environment in the first four months of the year with speed, rigour and discipline, focusing on what we can control.”
He added: “The conflict in the Middle East and prevailing UK macroeconomic environment has resulted in lower market volumes and significant cost inflation, particularly in polymers.”
Genuit said it introduced double-digit price increases on affected polymer-based product lines in May alongside freight charge increases.
The Climate Division reported revenue down 0.4% year-on-year and down 9.7% on a like-for-like basis. The company said ventilation markets performed better than heating businesses focused on repair, maintenance and improvement activity.
Integration of Monodraught, acquired in 2025, is progressing in line with expectations. Orders at Monodraught were up around 15% year to date, and the business has an order book exceeding 12 months of revenue.
Genuit said technical integration between Monodraught and Nuaire products has been completed ahead of a planned commercial launch in the second half of 2026.
The Water Division reported revenue down 0.3% year-on-year and down 8.2% on a like-for-like basis. Middle East revenue fell around 50% year-on-year due to the ongoing conflict.
Genuit said demand for its recycled plastic stormwater solutions is increasing as water infrastructure investment under the AMP8 programme develops. The company said it has submitted more than £5 million of AMP8 project quotes year to date with a win rate above 50%.
The integration of Davidson Holdings, also acquired in 2025, is progressing ahead of expectations. The business delivered operating margins above 20% in the four months to April, and Genuit now expects to realise planned integration benefits in 2027 earlier than originally anticipated.
Looking ahead, Genuit said underlying operating profit for the first half of 2026 is expected to be around the prior year level of £44.6 million. The company is targeting between £4 million and £5 million of annualised cost savings through accelerated simplification initiatives.
The board said it expects full-year underlying operating profit to be towards the lower end of current analyst estimates, assuming a timely resolution of the Middle East conflict and stabilisation in the macroeconomic environment.