Genuit Group (LSE:GEN), the UK's largest provider of sustainable water and climate products for the built environment, said on Tuesday that full-year underlying operating profit will come in at approximately £84m, below the £91m to £96m range previously compiled from analyst consensus forecasts.
The London-listed group's trading update for the nine months to 30 September showed revenue of £464.5m, up 3.5% year-on-year on a reported basis but down 4.3% on a like-for-like basis once acquisitions and disposals are stripped out.
The downgrade stems largely from the Climate Division, where revenue of £135.2m rose 3.5% on a reported basis but fell 7.2% like-for-like, as unusually warm autumn weather delayed typical seasonal stocking for the Adey heating brand and weighed further on an already soft first half.
Nu-Heat, exposed to the repair, maintenance and improvement market, also remained weak amid anticipated interest rate rises, while Ventilation was more resilient and is expected to grow year-on-year in the second half on a proforma basis.
The Water Division fared better, with revenue of £328.5m up 4.0% on a reported basis and down 3.3% like-for-like, helped by balanced price increases and a strong performance from the Manthorpe business, even as commercial and civils markets stayed subdued.
Genuit said AMP8-related orders, tied to the water industry's current regulatory investment cycle, continue to grow, with good visibility on projects for 2027.
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Cash conversion stayed above 90% year-to-date, and leverage stood at 1.5 times at the end of September with no near-term debt maturities.
"While the majority of the group has delivered a resilient performance, conditions have worsened in some specific markets due to unseasonally warm weather and the prevailing economic environment," said chief executive Joe Vorih, adding that simplification initiatives already announced will generate more than £4m of operating profit benefit in 2027.
Genuit will report full-year results for the twelve months to 31 December in March 2027.