(Alliance News) - Genuit Group PLC on Tuesday reported lower interim profit as revenue fell, but maintained its dividend as it posted a rosy outlook for 2023.
The Leeds, England-based provider of sustainable water, climate and ventilation solutions for the built environment said pretax profit in the first half of 2023 fell 9.7% to GBP29.7 million from GBP32.9 million a year before. Revenue declined 4.2% to GBP304.8 million from GBP318.0 million.
Cost of sales decreased 7.3% to GBP180.3 million from GBP194.4 million, as the company hailed cost reduction actions. Finance costs, however, more than doubled to GBP6.7 million from GBP2.8 million.
Genuit maintained an interim dividend of 4.1 pence per share.
Looking ahead, the company expects to perform financially at the top-end of current market expectations.
"Pent-up boiler and heating system demand is expected to be released as the economic situation stabilises, providing scope for recovery of demand within the climate management space. We remain confident that the tailwind of increasing energy efficiency in heating and ventilation, stormwater management and lower carbon building materials will benefit our businesses," Genuit said.
However, it noted that the market remained challenging, with macro expectations lower than at the start of 2023 in new residential and private housing repair, maintenance & improvement portions of the market.
Genuit shares rose 1.0% to 299.50 pence each on Tuesday morning in London.
By Tom Budszus, Alliance News reporter
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Genuit Group (GEN)