Plastic piping manufacturer Genuit said on Thursday that it has experienced “a robust start to the year” and now expects underlying operating profits to be close to the top end of current consensus estimates.
Driving the group’s solid profit performance was stronger than anticipated revenue growth in the four months ended 30 April, with group revenue for the period at £193.0m.
Margin performance was broadly in line with expectations, buoyed by strong operating leverage, while Genuit also noted it had “seen stronger than expected” cash generation.
Chief executive Martin Payne said: “The group has delivered a positive performance so far this year as well as completing the acquisitions of Adey, NuHeat, and Plura. The strength of trading conditions and that of the structural growth markets we operate in leads the board to expect that these improved trends will continue for the remainder of the first half of this year.
“There is some remaining uncertainty about how the pandemic will evolve, but the board believes the group is in a strong position to make continued progress in the current year.”
Elsewhere, Payne announced his intention to step down from the group during the first half of 2022.
As of 0855 BST, Genuit shares were up 4.02% at 595.0p.
