Genuit holds guidance as price rises offset Iran war hit

(Sharecast News) - Genuit said its expectations for the full year remain unchanged despite a sharp fall in interim profit, with pricing action, cost control and a strengthening infrastructure pipeline expected to support an improvement from next year. Revenue rose 3.4% to £307.8m in the six months to June 30, while underlying operating profit slipped 1.6% to £43.9m and underlying profit before tax fell 5.2% to £36.8m.

Statutory operating profit dropped 30% to £26.2m, reflecting weaker trading and exceptional costs linked to its simplification programme. Like‑for‑like revenue declined 4.8%, narrowing in May and June as double‑digit price increases took effect, compared with an 8.7% fall in the first four months.

"Genuit took decisive and responsible action in the first half of the year in the face of challenging market conditions," said chief executive Joe Vorih.

"We worked with customers to implement price increases in response to cost inflation driven by the Middle East conflict and accelerated the simplification of the business and controlled costs in response to lower market volumes."

Reporting by Frank Prenesti for Sharecast.com