(Alliance News) - Genuit Group PLC on Tuesday said it expects profit for 2021 to meet consensus expectations following a strong start, but the company warned of ongoing cost inflation and continued supply chain issues.
Shares in the Doncaster-based water, climate and ventilation systems manufacturer were 4.6% lower at 608.00 pence on Tuesday in London, languishing at the bottom of the FTSE 250 index.
For 2021 as a whole, Genuit expects earnings before interest and tax - or operating profit - to meet consensus expectations, which range from GBP92.5 million to GBP95.9 million.
For 2020, Genuit reported operating profit of GBP30.4 million.
For the four months ended October 31, the group reported revenue of GBP207.6 million, up 33% from GBP156.1 million the same period a year before, and 31% higher from the GBP158.4 million posted in 2019, driven by market outperformance.
However, Genuit warned that although it has continued to attempt to counter cost inflation during the second half of the year, operating margin will be lower than in the first half.
In addition, the company is still experiencing supply chain issues particularly for its Climate and Ventilation division.
"The group traded robustly in the four months to the end of October with continued strong demand from our UK Residential new build, RMI and Infrastructure markets. We have reacted well in managing challenging supply chain shortages and ongoing cost inflation and I would like to take this opportunity to thank everyone at Genuit for all their hard work and dedication so far this year," said Chief Executive Officer Martin Payne.
"We are alert to the ongoing macro related market risks such as continuing supply-chain shortages and cost inflation, but with a clear strategy built around strong environmental growth drivers and backed up with legislation, the group is well-positioned for the future."
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Genuit Group (GEN)