Piping manufacturer Genuit said on Tuesday that full-year profits had slumped despite reporting a modest uptick in revenues.
Genuit said operating profits had fallen 20.4% to £53.4m and pre-tax profits had tumbled 27.8% to £45.4m even as revenues rose 4.7% to £622.2m. Earnings per share were 12% lower at 14.7p and dividends per share increased just 0.8% at 12.3p.
The FTSE 250-listed group stated the decline in annual profits came as underlying operating margins contracted 20 basis points to 15.8% and the amount spent on the purchase of property, plant and equipment rose approximately £8.0m to £41.1m. Net debt excluding lease liabilities fell £2.0m to £143.1m.
Chief executive Joe Vorih said: “We have improved our pricing processes, begun the simplification of the business to unlock synergies and lower structural costs, and strengthened our sustainability leadership with the adoption of our science-based targets and a reduction in carbon intensity through the year.
“While short-term market instability will likely remain through much of 2023, our self-help measures, the Genuit Business System, and investment for sustainability-driven growth should position us well to deliver against our financial and strategic commitments.”
As of 1000 GMT, Genuit shares were down 1.25% at 276.0p.
Reporting by Iain Gilbert at Sharecast.com
