Genuit profits grow in year of 'significant strategic progress'

12th Mar 2024 08:06

(Sharecast News) - Plastic piping systems business Genuit said on Tuesday that profits had grown in what was a year of "significant strategic progress".

Genuit said full-year operating profits were up 16.1% year-on-year at £62.0m, while pre-tax profits improved 6.6% to £48.4m and earnings per share grew 5.4% to 15.5p.

Revenues, on the other hand, slipped 5.7% to £586.5m as underlying operating margins improved 20 basis points to 16.0% despite the group navigating what it called a "challenging market backdrop".

Genuit also upped its full-year dividend by 0.8% to 12.4p.

Chief executive Joe Vorih said: "2023 was a year of significant strategic progress for the Genuit Group in the context of a challenging market backdrop. The actions we have taken to simplify the business and deploy the Genuit Business System have enabled us to deliver an improved profit margin and strong cash conversion, despite the headwinds. Based on our strengthened balance sheet and confidence in our medium-term strategy, we are pleased to be increasing our full-year dividend."

Genuit added that it had started 2024 in line with internal expectations.

"Our ongoing operational and commercial progress put us in a strong position to benefit from eventual market normalisation and, looking further ahead, we remain confident in our ability to capitalise on the structural, sustainability-linked growth drivers of our markets," said Vorih.

As of 1035 GMT, Genuit shares were up 2.38% at 411.55p.

Reporting by Iain Gilbert at Sharecast.com