Genuit Group Plc · LSE:GEN
Genuit — H1 2024 Earnings Presentation
28 slides from Genuit's earnings presentation, Aug 13, 2024
Slide 1: Genuit Group plc 2024 Half Year Results Presentation
Genuit Group plc 2024 Half Year Results Presentation 13 August 2024
Slide 2: Disclaimer
Disclaimer The information contained in this presentation has not been independently verified and this presentation contains various forward- looking statements that reflect management’s current views with respect to future events and financial and operational performance. The words “growing”, “scop
Slide 3: Agenda
Agenda Introduction – Joe Vorih, CEO Financial Results – Tim Pullen, CFO Strategic Progress and Outlook – Joe Vorih, CEO Q&A Joe Vorih, CEO Tim Pullen, CFO 3
Slide 4: Key Highlights
Key Highlights Increased underlying operating margin (15.4% to 16.0%) despite market driven revenue reduction of 10.6% Completed 2 site closures in H1 2024 – underpinning the £15m annualised savings previously announced Strong underlying operating cash generation of £37.4m, 85.8% cash conversi
Slide 5: Market Context
Market Context UK construction remains subdued • Full year declines across new housebuilding starts (11%), commercial construction (3%) and private RMI (3%)*, as well as boiler sales (9%)** • Excessive wet weather has delayed construction projects in first half • Continued impact of high interest ra
Slide 6: Financial Results
Financial Results Tim Pullen, CFO 6
Slide 7: Financial Highlights
Financial Highlights Increased margin despite challenging market backdrop Cash Revenue EBIT Margin EBIT Conversion DPS Net Debt £272.4m 16.0% £43.6m 85.8% 4.1p £122.6m Down Up Down Up - Reduced 10.6% 60bps 7.2% 41pps 4.1p 2023 20.7% Volume Leverage Continued Progress Delivering Subdued reduction, re
Slide 8: Summary P&L
Summary P&L Delivering a strong platform for future growth £m H1 2024 H1 2023 Change Underlying operating margin growth to 16.0% (+60 Revenue 272.4 304.8 (10.6)% bps) and further improved operational gearing Cost of sales (150.5) (179.8) (16.3)% Business simplification actions and balanced price
Slide 9: Results - Revenue
Financial Results - Revenue Subdued market conditions in H1 Group Revenue H1 24 Revenue Breakdown £4.3m £m 11.2% H1 32.7% 272.4 2024 £78.6m 26.5% £111.4m H1 29.6% £78.1m 2023 304.8 UK New Build UK RMI CMS WMS SBS Other UK Commercial International 9
Slide 10: Results - Profit
Financial Results - Profit Completion of the simplification programme and disciplined cost management Group Underlying Profit And Underlying Operating Margin Underlying operating margin improvement of 60 basis points, despite a reduction in revenue of 10.6% £m 17.5 H1 2024 43.6 16.0% 6 site clos
Slide 11: Business Units Overview H1 2024
Financial Results Business Units Overview H1 2024 Revenue (£m) Underlying Operating 13.7% Profit (£m) 15.9% 15.4% 16.0% 11
Slide 12: Climate Management Solutions (CMS)
Financial Results Climate Management Solutions (CMS) £m H1 15.1% 11.9 Revenue decreased 7.2% year-on-year: 2024 78.6 Lower market volumes and continued softness in the boiler market affecting sales at Adey H1 13.5% 11.4 Partially offset by growth in residential 2023 84.7 ventilation sales at N
Slide 13: Water Management Solutions (WMS)
Financial Results Water Management Solutions (WMS) £m H1 10.0% 7.8 Revenue 11.4% lower than prior year: 2024 78.1 Impacted by wet weather and delayed project starts H1 10.0% 8.8 2023 88.1 Underlying operating margin flat versus prior year: Improved operating gearing in the context of 0 20 40
Slide 14: Sustainable Building Solutions (SBS)
Financial Results Sustainable Building Solutions (SBS) £m H1 21.1% 23.5 2024 111.4 Revenue reduction of 12.6% year-on-year: New house building volume decline in line with the market H1 20.5% 26.2 The RMI market also remained soft 2023 127.5 0 50 100 150 Underlying operating margin improved b
Slide 15: Non-underlying Items
Financial Results Non-underlying Items H1 24 £m H1 2024 H1 2023 cash impact Non-underlying items: Non-underlying items increased to £22.3m (7.2) (7.4) - Amortisation of intangible assets (2023: £10.6m) before tax Impairment of goodwill (12.4) - - Non-cash items of £15.9m, including Restructuring
Slide 16: Cashflow
Financial Results Cashflow £m H1 2024 H1 2023 Change EBITDA (before non-underlying items) 55.2 60.2 (5.0) Underlying cash generated from operations of £37.4m Capex (12.6) (13.1) 0.5 Leases (4.9) (2.8) (2.1) with operating cash conversion of 85.8% * Working capital (0.3) (23.1) 22.8 Continued inv
Slide 17: Strategic Progress and Outlook
Strategic Progress and Outlook Joe Vorih, CEO 17
Slide 18: Together, we create sustainable living
Our purpose Together, we create sustainable living 18
Slide 19: Our Strategy
Our Strategy Sustainable Solutions for Growth 1. Growth 2. Sustainability Focus on higher-growth, Continually improve the sustainability-driven sustainability of our markets, via organic operations to be the growth and disciplined lowest-carbon choice M&A opportunities for our customers 3. Genuit Bu
Slide 20: Significant Progress On Our Strategic Objectives
Significant ProgressOn Significant Progress OnOur OurStrategic StrategicObjectives Objectives Recent acquisitions expand UFH MMC project wins with newly Focus on market share gains in 1. Growth and blue-green roof presence launched offerings H2 Increased output rate of Carbon intensity maintained Re
Slide 21: Climate Management Solutions
Climate Management Solutions Well-positioned to benefit from legislative and environmental tailwinds Key Achievements H1 24 • Continued growth in residential market sales partially offsetting project delays in commercial markets • Nu-Heat underfloor heating business resilient in the context of a wea
Slide 22: Omnie & Timoleon acquisition
Omnie & Timoleon acquisition Leader in manufacture, design and supply of underfloor heating Cash consideration: £2.7m Annual revenue: c.£8.0m Employees: 90 Based in Exeter, Devon and Lomza, Poland Compelling opportunity to extend UFH offering within CMS across both new-build and retro-fit market
Slide 23: Water Management Solutions
Water Management Solutions Improved business performance through effective self-help measures Key Achievements H1 24 • Closure of two sites as part of the business simplification programme completed • Improved operating gearing in the context of volume softness • Launched the Horncastle lean lightho
Slide 24: Sky Garden acquisition
Sky Garden acquisition Leader in blue green roof technologies Cash consideration: £2.5m Annual revenue: c.£7.3m Employees: 46 Based in Tewkesbury, Gloucestershire Compelling opportunity to extend the Group’s blue green roof offering within WMS Complements and provides additional route to marke
Slide 25: Sustainable Building Solutions
Sustainable Building Solutions Strong progress despite challenging market Key Achievements H1 24 • Resilient volume performance against backdrop of low housebuilding • Site consolidation programme completed • Successful launch of PolyPlumb Enhanced and MecFlow • Continued deployment of GBS lean tool
Slide 26: Genuit Business System: Driving production efficiency at Nuaire
Genuit Business Significant System Progress On Our Stra Driving production efficiency at Nuaire through a continuous improvement approach A four-day kaizen workshop was held at Nuaire’s Caerphilly site to identify ways of improving the efficiency of the manufacture of its XBC heat recovery units to
Slide 27: Outlook
Outlook Market expected to remain subdued during H2, with a backdrop of low volumes of new housebuilding, softer commercial construction sector and an RMI market that has been waiting for interest rate reductions Despite this, the Board expects underlying operating profit to remain in the range
Slide 28: Genuit Group plc 2024 Half Year Results Q&A
Genuit Group plc 2024 Half Year Results Presentation Q&A 13 August 2024