Genuit Group (GEN) investor relations material

Executive summary

• Revenue rose 9.3% year-over-year to £297.8m, with underlying operating profit up 2.3% to £44.6m, outperforming a flat market despite cost headwinds from National Insurance and wage increases.

• Growth was driven by new solutions, targeted market share gains, and strategic focus on high-growth segments.

• Dividend per share increased to 4.2p, reflecting a progressive policy and confidence in long-term prospects.

• H2 margin improvement is expected due to management actions and operational improvements.

• Regulatory and structural tailwinds, including UK policy changes and increased housebuilding, are expected to drive medium-term growth.

Financial highlights

• H1 2025 revenue was £297.8m, up 9.3% year-over-year; underlying operating profit was £44.6m, up 2.3%; EBIT margin at 15.0%, down 100bps.

• Like-for-like revenue growth was just over 6%, excluding acquisitions.

• Underlying profit before tax rose 3.2% to £38.8m; underlying EPS up 3.6% to 11.6p.

• Cash conversion was 65% in H1, with a full-year target of around 90%.

• Gross margin declined by 50–70bps year-over-year, mainly due to M&A mix and wage-related costs.

Outlook and guidance

• Full-year underlying operating profit is expected to be in line with consensus (£93.0m–£97.7m), despite challenging market conditions and no anticipated market volume growth.

• Sequential EBIT margin improvement is anticipated in H2, driven by management actions, price increases, and cost efficiencies.

• Focus remains on outperforming the market through innovation, new solutions, and share gains.

• At least 25% available operational capacity supports medium-term profit targets as volumes grow.