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Genuit Group

LN: GEN

Market Cap£1,050m

Last Close 421.5p

Genuit is a leading supplier of largely plastic building products and systems. Operations in the UK (c 90% of revenue) address a broad range of sectors including residential, commercial and civil building demand and a number of subsectors within them.

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Investment summary

Genuit announced FY21 PBT norm of £91.1m (EPS 30.2p) ahead of our £86.7m (28.6p) expectation. Like-for-like revenue growth was 12.9% supplemented by acquisitions to 33% on a reported basis and the mix was slightly more in favour of Commercial & Infrastructure (C&I). Residential Systems (RS) generated the EBIT outperformance, including a 19.3% full year margin. The declared FY dividend of 12.2p and core net debt was £145m (pre IFRS 16). Since then, the trading update covering the first four months of FY22 showed total revenue up 8.3%, and up 6.3% on a like-for-like basis. C&I grew 9% and RS increased 7.8%, both growth due to underlying demand, pricing and M&A. Our estimates are under review.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2020A 398.6 63.4 35.7 13.3 31.7 14.9
2021A 594.3 120.3 91.1 30.2 14.0 12.2
2022E 604.3 128.3 94.3 31.1 13.6 8.6
2023E 638.3 137.3 103.5 34.2 12.3 7.8
Industry outlook

The Construction Products Association projections include a strong post COVID-19 rebound in 2021 followed by 4.8% in 2022.

Last updated on 10/08/2022
Content on Genuit Group
Genuit Group – Outlook maintained
Industrials | research Update | 2 December 2021
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Genuit Group – Positive trading momentum continues ytd
Industrials | research Update | 28 May 2021
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Polypipe – Acquisitions feed into FY21 earnings recovery
Industrials | research Update | 26 February 2021
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Share price graph
Balance sheet
Forecast net debt (£m) 142
Forecast gearing ratio (%) 23
Price performance
%
1m
3m
12m
Actual 8.1 5.1 (34.5)
Relative* 3.2 1.4 (35.1)
52-week high/low 801.0p/373.0p
*% relative to local index
Key management
Joe Vorih CEO
Paul James CFO