- Genuit Group
- 10 March 2026 09:22:10
Source: Sharecast
The FTSE 250 maker of water and climate management products said revenue rose 7.3% to £602.1m in the year ended 31 December, from £561.3m in 2024.
On a like-for-like basis, revenue increased 3.2%, driven by the adoption of new solutions and targeted market share gains.
Underlying operating profit increased 2.4% to £94.4m, while underlying profit before tax rose 4.5% to £82.9m.
Underlying earnings per share climbed 5.7% to 26p.
The underlying operating margin declined to 15.7% from 16.4%, reflecting cost pressures including increases in national insurance and the National Living Wage.
On a statutory basis, operating profit rose 17.7% to £69.7m and profit before tax increased 25.7% to £58.2m.
Basic earnings per share rose 34.8% to 18.2p.
Cash generated from operations was broadly stable at £114.1m compared with £115.5m the previous year.
The board proposed a total dividend of 12.9p per share, up 3.2% from 12.5p a year earlier, in line with the group’s progressive dividend policy.
Net leverage increased to 1.5 times pro-forma EBITDA from 0.9 times a year earlier, reflecting funding for two bolt-on acquisitions completed in the second half of 2025.
Chief executive Joe Vorih said the company had continued to outperform despite weak end-markets.
“Genuit has again demonstrated its ability to grow and outperform in challenging markets.
“Against a backdrop of subdued market activity, we delivered organic revenue growth, driven by the adoption of new solutions in structurally attractive segments and targeted market share gains.”
He added that the group had increased profits despite higher labour-related costs.
“We grew underlying profits year-on-year despite cost headwinds from national insurance and National Living Wage increases.
“This reflects operational actions taken through the year, the growing impact of the Genuit Business System, and the contribution from recent bolt-on acquisitions.”
By division, climate management solutions revenue rose 10.7% to £178.9m, driven by strong growth in ventilation products, although underlying operating margin declined to 13.6% from 14.9% due to weaker volumes in underfloor heating.
Water management solutions revenue increased 5.3% to £169.5m, but underlying operating profit fell 29.4% to £9.6m as margin pressure and an inventory provision weighed on results.
Sustainable building solutions, the group’s largest unit, reported revenue of £246.8m, up 6.5%, supported by market share gains in drainage products and growth in commercial markets.
Underlying operating profit in the division rose 10.1% to £59.9m, with margin improving to 24.3% from 23.5%.
During the year the group also completed the acquisitions of Monodraught and Davidson Holdings, which it said brought complementary products and were expected to be margin accretive from 2026.
Following the end of 2025, Genuit simplified its organisational structure and will operate through two divisions.
A new water division would combine the former sustainable building solutions and water management solutions units under Steve Currier, while the climate division, led by Lee Mellor, would focus on ventilation and heating solutions.
Vorih said the company remained focused on operational improvement and sustainability-led growth opportunities.
“Our strategy remains unchanged despite uncertain market conditions.
“We remain focused on operational excellence, exposure to sustainability-led growth drivers and disciplined, strategic bolt-on mergers and acquisitions.”
Looking ahead, the company said subdued market conditions seen late in 2025 had continued into the first quarter of 2026, with construction activity affected by prolonged wet weather at the start of the year.
However, it said it remained confident in achieving its medium-term targets and expected further improvements from the rollout of its Genuit Business System and continued focus on higher-growth market segments.
At 0902 GMT, shares in Genuit Group were up 7.72% at 328p.
Reporting by Josh White for Sharecast.com.