Revenue at construction products manufacturer Genuit is up 8.5 per cent on last year amid “encouraging signs of recovery” in the UK market.
According to the group’s latest trading statement, revenue for the four months of this year stood at £199m, compared with £184m at the same point last year.
Maintaining its full-year outlook, the plastic piping manufacturer reassured investors over potential exposure to trade tariffs, and hinted at potential future acquisitions.
Growth was strongest in the group’s water-management division, where revenue rose 9.6 per cent on the back of demand for stormwater-attenuation solutions.
Climate-management solutions also saw healthy returns, with turnover increasing by 9 per cent, as residential ventilation services continued to perform well.
There was optimism too within the firm’s sustainable-building arm, where revenue rose by 8.2 per cent, buoyed by the exit of a market competitor.
“Whilst volumes are still historically low, new housebuilding is showing positive signs of recovery,” the statement said.
“Repair, maintenance and improvement, and commercial markets, remain more challenging but the business unit is making strong progress with added-value solutions and demand related to modern methods of construction.”
The group said it expected margins to be eroded in the first half of the year by increases in employers’ National Insurance contributions and the minimum wage, but said it would mitigate the impact through productivity gains and cost and price management.
Genuit signalled that it would continue to focus on growing market share through organic growth, new product launches and, potentially, acquisitions.
“With a strong balance sheet, the group continues to cultivate the acquisition pipeline, with a focus on strategic bolt-on opportunities,” it said.
Chief executive Joe Vorih said the group was trading in line with expectations, with the UK market showing “encouraging signs of recovery”.
“Each of our business units has delivered organic sales growth for the first four months and we have secured some positive share gains in a competitive market,” he said.
“Whilst we recognise the broader macroeconomic backdrop remains uncertain, Genuit is not directly exposed to changes in trade tariffs and is well positioned to navigate this near-term environment.
“Over the medium-term, we remain confident in outperforming the market due to our strong exposure to sustainability-linked growth drivers.”
The group is due to report its interim results for the six months to the end of June in August.