FoggyIsle.XYZ | Market's view on Genuit Group

The appointment of Pullen as COO in November 2021 and subsequent non-replacement raised questions about the management structure and potential impacts on the company’s operations.
Genuit Group, previously known as Polypipe Group plc, specialises in sustainable water, climate, and ventilation management solutions, with a strong focus on ESG activities and geographic expansion.
Interim results for the first half of 2022 showed a revenue increase of 7.6% to £318 million, though profit before tax decreased by 2.7% to £32.9 million, with a notable increase in EPS of 27.6% to 10.1p. The CEO highlighted effective pricing strategies and selective business decisions which countered inflationary pressures.
The stock is perceived as expensive with a forward P/E ratio of 12.4x, situated in the lower quartile of the sector, amid a 12-month share price correction.
Aberdeen Standard Investments reduced their holding in Genuit by approximately 10%, selling 2.3 million shares.
Concerns were mentioned regarding tightening margins indicated in recent results, despite satisfactory performance.
Ongoing challenges include significant input cost increases and raw material shortages, though Genuit is seen to be in a relatively strong position due to reduced reliance on the home replacement market.
The performance during COVID-19 lockdowns was supported by exposure to open-air projects; however, commercial sector growth was mediocre.
Analysts expect a 9% profit increase driven by residential growth and successful acquisitions, with the board anticipating an operating profit for the fiscal year ahead of expectations.
The company is moving its headquarters from South Yorkshire to Leeds, which is intended to allow expansion at the Doncaster site.