Genuit Group PLC (LSE:GEN) has issued a profit warning as a “consequence of the uncertainty impacting trading in the latter part of Q3.”
In a trading statement for the nine months to 30 September, Genuit said the third quarter did not see the normal seasonal uplift in volumes, with its repair, maintenance and improvement (RMI) business most impacted, although areas driven by the need for energy efficiency were trading well.
Trading conditions at the end of the third quarter came against the backdrop of increasing macro-economic and political uncertainty, the provider of sustainable water and ventilation products noted.
As a result, it said, profit for the year is expected to be at the lower end of the market consensus range of between £96.8mln and £109mln.
Genuit said it is managing cost inflation through “robust price leadership,” successfully passing on prices hikes to customers in September.
However, it added, supply chain issues continue to persist, with the supply of semiconductors and printed circuit boards inhibiting customer demand in the upstream boiler market.
Despite this, revenue was up 3% on a like-for-like basis to £472mln in the third quarter, and it has reduced its net debt since the half year, the company said.
“The group is well positioned to weather this uncertainty, with variable manufacturing capacity and we have already undertaken significant self-help measures with planned improvements to our cost structure,” Genuit chief executive Joe Vorih said in the update.
In morning trading, Genuit shares were 5.4% lower at 253p.