Plastic piping manufacturer Genuit said on Tuesday that both annual revenues and profits had surged in 2021 as margins improved despite cost headwinds and supply chain constraints.
Genuit stated revenues were up 49.1% at £594.3m in 2021, which, when coupled with a 540 basis point improvement in its underlying profit margin to 16.0%, led to a 120% improvement in operating profits and a 164% jump in pre-tax profits to £62.9m.
The FTSE 250-listed firm highlighted that its improved revenue performance was principally due to a “significant increase in demand” and “robust price leadership” in the market.
Basic earnings per share were up 96.5% at 16.7p, while the group also raised its full-year dividend per share by 154.2% to 12.2p.
Genuit also pointed to “strong operational cash management and balance sheet”, with its net debt now sitting at 1.2 times pro forma EBITDA, with a “strongly supported” £96.3m capital raise helping fund its recent acquisition of magnetic filters provider Adey and its net capital expenditure of £34.1m.
Chief executive Joe Vorih said: “The group has delivered another strong performance, toward the higher end of expectations, despite cost inflation and some supply chain constraints. While challenges remain, our team has taken additional measures to improve price and margins as we enter 2022 and we remain in a strong demand environment.”
