Genuit interim profit dives 40% as US-Iran war drives up costs
Genuit Group PLC on Tuesday said it predicts a challenging backdrop for the rest of 2026, noting the conflict in the Middle East pushing up costs.
The Leeds, England-based provider of water, climate and ventilation systems said pretax profit dove 40% to £19.1 million in the first half of 2026 from £31.7 million a year prior.
This was despite revenue rising 3.4% to £307.8 million from £297.8 million.
"Genuit took decisive and responsible action in the first half of the year in the face of challenging market conditions," Chief Executive Officer Joe Vorih said.
"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."
He added: "We have successfully integrated the two acquisitions made in 2025, with both performing as anticipated and commercial synergies from Monodraught ahead of our expectations."
Genuit bought commercial ventilation solutions provider Monodraught Topco Ltd for £55.6 million in September. Later that month, it agreed to buy Davidson Holdings Ltd, an owner of plumbing and heating sector brands, for £49.0 million.
Genuit on Tuesday maintained its interim dividend at 4.2 pence per share.
Looking ahead, the company cautioned that challenging market conditions are expected to persist for the rest of 2026, citing the US-Iran war, as well as current UK political and economic circumstances.
Despite this, Genuit expects underlying operating margins in the second half to benefit from balanced cost and price management and a non-recurrence of operational challenges at Adey.
Genuit subsidiary Adey specialises in water treatment and magnetic filtration, among others.
The company said for its Climate division that "the residential repair, maintenance & improvement market remains subdued, resulting in challenging market conditions for the Nu-Heat and Omnie underfloor heating brands.
"In March, three new go-to-market propositions were launched to adapt our offer to the changing market dynamics with the goal of capturing market share gains in the second half."
Genuit added that medium-term structural growth drivers for the Climate division strengthened in the first half amid the publication of the final detail of the 'future homes standard' and the UK government's 'warm homes plan'.
The firm said: "The impacts of climate change have been particularly evident in the hot weather of recent months, underlining the need for the transition to more efficient, lower carbon buildings with low-carbon heating and cooling solutions. We also welcome the 'social & affordable homes plan' which increases funding, helping to provide higher quality, healthier homes in the affordable and social rent sector."
Genuit shares were down 4.3% to 292.00 pence each on Tuesday morning in London.
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