Genuit Group PLC (LSE:GEN) said its “strong” order book will help it meet full-year financial expectations “despite the short term headwinds in the residential sector”.
The building supplier also boosted turnover 7.6% to £318mln in the six months ended 30 June. But pre-tax profit fell 2.7% to £32.9mln, following nationwide boiler shortages and a cyber incident it said has now been fully mitigated.
Earnings per share increased 28% to 10.1p and the group raised its dividend to 4.1p, up from 4p a year ago.
"Agile pricing leadership offset inflationary pressures, and the effect of selective business decisions helped to increase our margins,” Genuit chief executive Joe Vorih said:
“These, with more focus on operational efficiency, overcame some limited headwinds while delivering revenue growth over the prior year and improving profitability throughout the second quarter.
“Our structural tailwinds are driven by regulation and the resulting investment needed to mitigate and adapt to effects of climate change. We remain focused on unlocking ways to accelerate growth and expand operating margin.
“While mindful of the macroeconomic pressures, we have good momentum as we enter the second half, and the group anticipates meeting full year expectations."
The company said it is optimistic its plastic piping sector, which has battled ongoing boiler supply constraints, will be boosted by new housebuilding and increased interest in energy efficiency.
Genuit said 47.1% of its materials are recycled, meaning it is more than two-thirds of the way towards its target of 62% by 2025.
The company also indicated it might look to raise capital from the markets in the near future, saying it will hold an undisclosed capital markets event in the autumn.