Genuit Group (LSE:GEN), the UK's largest provider of sustainable water and climate products for the built environment, reported revenue of £307.8m for the six months to 30 June, up 3.4% on the same period last year.
On a like-for-like basis, stripping out 2025 acquisitions, revenue fell 4.8%, though trading improved through May and June as double-digit price increases took hold following a weaker first four months hit by the Middle East conflict and wet weather.
Underlying operating profit fell 1.6% to £43.9m, with like-for-like margin down 140 basis points to 13.7%, partly due to non-recurring operational issues at Adey, including a £1.5m slow-moving stock provision and a £0.8m supplier quality failure.
Reported operating profit dropped 30.1% to £26.2m, reflecting lower underlying profit and exceptional costs tied to business transformation.
"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, adding that commercial synergies from the Monodraught acquisition are running ahead of expectations.
The Water Division, the larger of Genuit's two units, grew revenue 4.1% to £217.3m with underlying margin up to 16.2%, while the Climate Division rose 2.4% to £89.7m but saw margin fall to 9.7%.
Leverage rose to 1.6 times pro-forma EBITDA from 1.0 times a year earlier following two 2025 acquisitions, remaining within target range.
The board declared an interim dividend of 4.2p, unchanged from last year.
Genuit expects challenging market conditions to persist through the remainder of the year but said full-year expectations remain unchanged, with simplification initiatives expected to deliver over £4m of operating profit benefit in 2027.
