Genuit : Full Years Results

Genuit Group plc

Audited results for the year ended 31 December 2023

Strong strategic progress despite a challenging market backdrop

Genuit Group plc ("Genuit", the "Company" or the "Group"), the UK's largest provider of sustainable water, climate and ventilation solutions for the built environment, today announces its audited results for the year ended 31 December 2023.

Financial Results

Statutory Measures	2023	2022	Change %
Revenue (£m)	586.5	622.2	(5.7)
Operating profit (£m)	62.0	53.4	16.1
Profit before tax (£m)	48.4	45.4	6.6
Earnings per share (basic - pence)	15.5	14.7	5.4
Cash generated from operations (£m)	109.7	93.9	16.8
Dividend per share (pence)	12.4	12.3	0.8
Alternative Performance Measures1	2023	2022	Change %
Underlying operating profit (£m)	94.1	98.2	(4.2)
Underlying operations cash conversion (%)	87.7	57.4	3030 bps
Underlying operating margin (%)	16.0	15.8	20 bps
Underlying profit before tax (£m)	80.5	90.6	(11.1)
Underlying earnings per share (basic - pence)	25.2	30.8	(18.2)
Leverage (times pro-forma EBITDA) 2	1.1	1.2	-

1 Alternative performance measures (APMs) are used by the Group to assess the underlying performance of the business. A definition of all the APMs is set out in note 1 on page 23.

2. Pro-forma EBITDA is reconciled in note 13 on page 35.

Joe Vorih, Chief Executive Officer, said:

"2023 was a year of significant strategic progress for the Genuit Group in the context of a challenging market backdrop. The actions we have taken to simplify the business and deploy the Genuit Business System have enabled us to deliver an improved profit margin and strong cash conversion, despite the headwinds. Based on our strengthened balance sheet and confidence in our medium-term strategy, we are pleased to be increasing our full year dividend. These results are a credit to the whole Genuit team, and I'd like to thank all my colleagues for their contribution.

We have started 2024 in line with our expectations, in the context of continuing market headwinds. Our ongoing operational and commercial progress put us in a strong position to benefit from eventual market normalisation and, looking further ahead, we remain confident in our ability to capitalise on the structural, sustainability-linked growth drivers of our markets."

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Financial Highlights

• Underlying operating margin up 20 basis points to 16.0%, despite a full year market-driven revenue reduction of 5.7%, demonstrating continued progress towards the Group's medium- term operating margin target of >20%.
• A full year volume reduction of 12.4% was partially offset by new product launches, balanced price and cost management and business simplification projects, resulting in a 4.2% year-on- year reduction in underlying operating profit.
• £15m of annualised cost savings underpinned across 2022 and 2023, partially offsetting inflationary headwinds and market-driven volume softness.
• Reported operating profit of £62.0m (2022: £53.4m) increased 16.1% year-on-year. On an
  underlying basis, operating profit was £94.1m (2022: £98.2m).
• Strong underlying operating cash generation of £82.5m (87.7% cash conversion), with net debt reduced from 1.2 times to 1.1 times underlying pro-forma EBITDA, in line with expectations.
• Underlying EPS decreased to 25.2p, predominantly as a result of increased tax and interest costs.
• New progressive dividend policy: total dividend per share for the year of 12.4p (2022: 12.3p), reflecting strength of the balance sheet and confidence in execution of strategy.

Strategic and operational highlights:

Growth - Focusing on higher- growth, sustainability-driven markets, via organic growth and disciplined M&A opportunities.

1. Sustainable Building Solutions (SBS) revenue declined by 14.1%, while underlying operating profit margin improved, driven by business simplification projects.
2. • Launched PolyPlumb Enhanced plastic plumbing range following multi million- pound investment programme. This is a key part of growing our market share in the RMI segment and features patented installation benefits.

1. Water Management Solutions (WMS) revenue declined 1.2%, but with a stronger second half performance and business simplification projects driving an improvement in operating profit margin.
2. • Launched SubTerra CT driving growth in fibre network rollout.
   • Continued growth in Permavoid, with UK showing significant uptake in green urbanisation solutions, addressing the twin issues of stormwater water attenuation and providing better urban spaces.

1. Climate Management Solutions (CMS) revenue grew 4.6% with strong residential ventilation growth offsetting continued weakness in the boiler market. Underlying operating margin was lower on a full year basis but has improved in H2 versus H1.
2. • Launched Nu-Deck underfloor heating range targeting the RMI segment to promote UFH and heat pump adoption outside of new build.
   • Drove further growth and specifications for MVHR with integral cooling module, addressing the need for combining low carbon heating and cooling, along with providing fresh healthy air.

1. Across the Group international revenue increased by 9.8%, representing 11.5% of revenue in the year (2022: 9.9%).

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Sustainability - Continually improving the sustainability of our operation to be the lowest-carbon choice for our customers.

• Progress on SBT's and Pathway to Net-Zero by 2050. Absolute carbon reduced by 33% vs prior year.
• Scopes 1 & 2 Carbon intensity remained consistent despite challenge of lower volumes.
• Recyclate use c. 50% with projects to further increase in 2024.
• Retained The 5% Club silver status with pathway to gold.

Genuit Business System - Creating value through lean transformation and operational excellence.

• Undertook 'lean lighthouse' projects across Adey and Polypipe Building Products and commenced a further project in Horncastle in 2024 to drive efficiencies.
• Lean tools and Kaizen methodologies being deployed on a multi-year basis across the Group to drive continuous improvement.
• Over 10% of Genuit employees have participated in lean Kaizen events or training so far, empowering and inspiring our workforce as we progress on our lean journey.

People and Culture - Creating value and enabling growth through the capability, expertise and development of our employees.

• Established the Genuit Leadership Team (top c.70) with increasingly cross-functional working practices and launched the Genuit Leadership programme.
• DE&I training rolled out for all Leaders and diversity of leadership team improving, with female representation now at 29%.
• Genuit Group became a strategic partner of Construction Inclusion Coalition.

Outlook

• Trading for 2024 has started in line with our expectations, despite continued market uncertainty.
• Current softness in UK construction expected to continue but will vary by end market.

• 1. New housebuilding volumes continue to be challenging. o Uncertainty in RMI and commercial sectors remains.
     o Pent-up demand for boiler replacements continues to grow.
     o Penetration of ventilation and stormwater attenuation continues to increase.
• Given the strategic and operational progress made in 2023, the Group is in a strong position to navigate the near-term market headwinds and benefit from eventual market normalisation.
• The Group remains confident in the medium-term growth drivers including demand generated by addressing the structural UK housing shortage, as well as regulatory changes and increasing customer demand for sustainability-linked solutions in both water and climate management.

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Enquiries:

Joe Vorih, Chief Executive Officer Tim Pullen, Chief Financial Officer [phone]

Headland Consultancy:

Andy Rivett-Carnac

Matt Denham

Chloe Francklin

Telephone: [phone]

Email: [e-mail]

A copy of this report will be available on our website www.genuitgroup.comtoday from 0700hrs (BST).

A live webcast of the Final Results presentation, hosted by Joe Vorih, Chief Executive Officer, and Tim Pullen, Chief Financial Officer, will be broadcast at 0830 on Tuesday 12 March 2024. To access the live presentation on that date, participants will be required to register in advance using the following webcast link:

https://www.investis-live.com/genuit-group/65cde81a6195a5120007ae1a/hser

We recommend you register by 0815hrs (GMT). The webcast will be recorded, and a replay will be available shortly after the webcast ends via the same link above. A recording of the presentation and a copy of the slides will be available following the event on the Company's website at Results, Reports & Presentations - Genuit Group plc

Notes to Editors:

About Genuit Group plc

Genuit Group plc is the UK's largest provider of sustainable water, climate and ventilation products for the built environment. Genuit's solutions allow customers to mitigate and adapt to the effects of climate change and meet evolving sustainability regulations and targets.

The Group is divided into three Business Units, each of which addresses specific challenges in the built environment:

• Sustainable Building Solutions - Providing a range of construction solutions to reduce the carbon content of the built environment.
• Water Management Solutions - Driving climate adaptation and resilience through integrated surface and drainage solutions.
• Climate Management Solutions - Addressing the drivers for low carbon heating and cooling, and clean and healthy air ventilation.

Across these divisions, Genuit's brands are some of the most well-established and innovative in the industry, including Polypipe, Nuaire and Adey.

The Group primarily serves the UK and European building and construction markets with a presence in Italy and the Netherlands and sells to specific niches in the rest of the world.

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Group Results

Group revenue for the year ended 31 December 2023 was £586.5m (2022: £622.2m), declining 5.7% despite an overall volume reduction of 12.4% year-on-year, in the context of market headwinds. UK revenue declined 7.4% but international revenue increased by 9.8%, representing 11.5% of revenue in the year (2022: 9.9%).

Underlying operating profit was £94.1m (2022: £98.2m), a decrease of 4.2% with a volume reduction offset by new product launches, balanced price and cost management and business simplification projects. As a result, the Group underlying operating margin increased by 20 basis points to 16.0% (2022: 15.8%), demonstrating progress towards medium-term margin targets despite the prevailing market softness.

The Group successfully completed several business simplification projects in 2022 and 2023, including a number of site closures and a centralised approach to procurement. The Group also started the multi- year deployment of the Genuit Business System (GBS) which focuses on continuous improvement. These activities have successfully underpinned £15m of annualised cost savings without any reduction in capacity to ensure strong operating gearing as volumes normalise.

Profit before tax was £48.4m (2022: £45.4m), an increase of 6.6%. The Group continued to invest in product development and innovation throughout the year. In 2023, operating profit benefitted from £1.5m of HMRC approved Research and Development expenditure credit, relating to the year ended 31 December 2023.

Non-underlying items decreased to £32.1m (2022: £45.2m) before tax. These were driven by non-cash

amortisation of £14.8m (2022: £15.2m) and total impairment charges of £2.5m (2022: £14.8m)

respectively. The Group incurred one off costs of restructuring of £15.3m (2022: £9.3m) related to the business simplification projects that have underpinned the £15m of annualised savings.

Underlying finance costs increased to £13.6m (2022: £7.6m) due to significantly higher Standard Overnight Index Average (SONIA) interest rates partially offset by lower level of RCF borrowings. Interest cover was 8.2x for the year (2022: 16.0x).

Interest was payable on the RCF at SONIA (2022: SONIA) plus an interest rate margin ranging

from 0.90% to 2.75%. The interest rate margin at 31 December 2023 was 1.65% (2022: 1.60%). The Group has commenced an interest rate hedging strategy in 2024 to provide increased certainty and manage interest rate risk.

The underlying tax charge in 2023 was £17.9m (2022: £14.1m) representing an effective tax rate

of 22.2% (2022: 15.6%). This was below the composite UK standard tax rate of 23.5% (2022: 19.0%).

Underlying profit after tax was lower than the prior year at £62.6m (2022: £76.5m) due to the increase

in finance costs and higher tax rate. Underlying basic earnings per share was 25.2 pence (2022: 30.8 pence).

Including non-underlying items, profit after tax was £38.5m (2022: £36.5m), and basic earnings per

share was 15.5 pence (2022: 14.7 pence).

The final dividend of 8.3 pence (2022: 8.2 pence) per share is being recommended for payment on 5 June 2024 to shareholders on the register at the close of business on 3 May 2024. The ex-dividend date will be 2 May 2024. The Group is announcing a progressive dividend policy and an increase in the full-year dividend of 12.4p per share, despite challenging near-term trading conditions and changes to interest and tax costs. This reflects the Group's strong balance sheet and confidence in its medium- term strategy.

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Revenue and operating profit and margin	2023	2022	Change
£m	£m	%
Revenue	586.5	622.2	(5.7)
Underlying operating profit	94.1	98.2	(4.2)
Underlying operating margin	16.0%	15.8%	20 bps
Revenue by geographic destination	2023	2022	Change
£m	£m	%
UK	519.1	560.8	(7.4)
Europe	33.4	32.4	3.1
Rest of World	34.0	29.0	17.2
Group	586.5	622.2	(5.7)

Chief Executive Officer Review

Our Results: Progress toward our mid-term targets

My second year as CEO of Genuit has been one of significant strategic progress for the Group, despite a backdrop of continued external challenges. Our performance was resilient in the face of ongoing softness in the UK construction market, with successful product launches, balanced price and cost management, ongoing business simplification and growth in our international revenues helping to offset this volume decline.

Importantly, our leadership team has remained fully focused on executing our Sustainable Solutions for Growth strategy, the benefits of which are already flowing through. All this has only been possible thanks to the great work of our incredible team across the entire Genuit Group.

Our business simplification programme over 2022 and 2023 has been highly successful, and we have announced £15m of annualised savings from a range of self-help measures that leave the Group more streamlined, efficient and better placed for profitable growth. This has included the site consolidation programme across six sites that we are in the final phases of completing, with no reduction to our productive capacity. The deployment of the Genuit Business System on a multi-year basis has also begun to bear fruit as we begin to implement lean processes throughout the Group in order to drive a culture of continuous improvement.

These strategic decisions have served to improve our annual underlying profit margin from 15.8% to 16.0% despite the market-driven decline in revenues of 5.7%. Underlying operating cash conversion has also been strong at 87.7%, approaching our 90% mid term target, strengthening our financial position and allowing us to de-leverage the balance sheet while continuing to invest in growth.

With the Group on a firm financial footing and with high confidence in our strategic direction, we are pleased to be able to propose an increase in our full-year dividend to 12.4p and formally introduce a progressive dividend policy.

Our Customers: Challenging market conditions remain

Genuit today is focused on sustainability-driven growth, helping our customers respond to climate adaptation and mitigation challenges. We continue to focus on segments that benefit from mid-term regulation and a customer-driven need for climate solutions - the electrification of our houses and workplaces to reduce carbon, better cooling and ventilation as the climate warms, more effective rainwater collection and reuse, and attenuation of flooding and storm runoff now more prevalent than ever. We provide these solutions into a range of end markets - new house building and RMI, commercial and multi-story residential construction, infrastructure including storm water management projects within road and rail - and we are growing in many of these sectors internationally.

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The structural UK housing shortage continues and must be addressed, so that despite the recent weakness, mid-term growth in this sector should be robust as the UK seeks to build the houses needed. 2023 saw a decline in site openings and starts, with higher interest rates affecting mortgages, cost of living concerns continuing and planning constraints still affecting housebuilders. We are expecting these low levels to continue into 2024 but expect pent-up demand to drive stronger growth in time.

There were some important segmental trends in residential construction. Notably, our Nuaire ventilation business saw organic growth in 2023 driven by increased penetration of new ventilation solutions - most notably to control damp and mould in social housing. Our Nu-Heat business saw a decline in renewable energy conversion projects as affordability was a concern for consumers, though project interest has increased since the government announced the increase of the Boiler Upgrade Scheme from £5,000 to £7,500 - certainly a positive development. On the other hand, the gas boiler market remained below normal levels, as the supply chain constraints of 2022 were replaced with decreased demand as consumers put off boiler replacements, keeping existing systems running. Historically, this has created pent-up demand for replacement of boilers as they age, demand that may return quickly when confidence returns.

While the UK still represents nearly 90% of Group sales, our geographic expansion activity continues as the demand for water management and building drainage solutions in the Middle East continues to develop, and we introduced new network infrastructure products - including for the North American market.

Despite the short-term headwinds that continue in 2024, we do see positive developments. The Future Homes Standard is expected to drive a significantly increased uptake of air-sourced heat pumps (ASHP's) and underfloor heating, more heat recovery in ventilation, and a continued focus on energy efficiency and lower carbon products. Again, last year, we saw hotter summers and more pronounced storms and flooding

• challenging construction in the short term but reaffirming confidence in the need for our water management and green urbanisation solutions. In addition, lower carbon content (such as with the higher recycled-content plastic products we provide) is quickly moving up the agenda for our customers, in line with their own carbon commitments or driven by local initiatives such as the London Plan. On balance, while the short-term outlook is unsettled, there has never been a better time to be focused on creating sustainable living.

Our Strategy: Sustainable Solutions for Growth

Our Sustainable Solutions for Growth strategy is built around four key pillars:

• Growth - Focus on higher-growth,sustainability-driven markets, via organic growth and disciplined M&A opportunities
• Sustainability - Continually improve the sustainability of our operations to be the lowest-carbon choice for our customers
• Genuit Business System - Create value through lean transformation and operational excellence
• People and Culture - Create value and enable growth through the capability, expertise and development of our employees

I am pleased with the progress that we have made against each of these commitments in 2023, which has seen us drive improvements throughout the business and strengthen our position going into 2024.

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Growth

By focusing on sustainability-driven markets in the built environment, we see significant opportunities to outperform the broader construction market. The necessity of adapting to climate change, regulatory changes and shifting customer preferences create a series of structural tailwinds that will enable us to achieve organic growth and open the possibility for disciplined M&A opportunities.

Despite the softness in the UK construction sector in 2023 and the overall decline in volumes, I'm pleased to say that this approach helped to secure revenue opportunities across all three of our divisions. Sustainability-driven structural growth drivers including the need for greater ventilation in social housing and stormwater attenuation have served to drive demand for our solutions.

The launch of exciting new product lines, including Polyplumb Enhanced in Sustainable Building Solutions (SBS), Nu-Deck and MVHR with cooling in Climate Management Solutions (CMS) and SubTerra CT in Water Management Solutions (WMS), demonstrates our commitment to innovating within our product ranges and providing customers with innovative and highly relevant solutions. All these products tie into the need to address climate adaptation challenges and improve the resilience of the built environment.

Solution selling, including expanding the Nu-heatdirect-to-contractor or homeowner offering, and working with national and regional homebuilders to install early ASHP and underfloor heating solutions - ahead of the Future Homes Standard - were effective. Our commercial offering has expanded with Polypipe Advantage pre-fabricated solutions growing, enhanced with a new Stax line of pre-configured solutions. We merged our Keytec and Alderburgh installation businesses to create a class leading water management solution partner with national reach.

The launch of these products, solutions and services, with a continued pipeline of development, means that despite some variation as products mature, we remain on track to maintain our target of 25% of all sales coming from products developed in the last five years. Furthermore, our success in integrating past acquisitions successfully, stronger leadership capability, and decreased leverage, all position the Group well to continue to develop and pursue strategic acquisitions that will add to our organic growth potential and enhance shareholder returns in the future.

Sustainability

Our growth strategy is inextricably linked to sustainability, as the key driver of our markets and the core of our product suites. It is therefore imperative that we are continually pursuing a programme of improvement in regard to our own sustainability metrics, ensuring that we are the lowest-carbon supplier of choice to our customers.

We are on a trajectory to become net-zero by 2050, and our sustainability plans have progressed well in the year. Most notably, in 2023 we became the first amongst our UK peers to have verified SBTi approval for our near-term carbon reduction targets, which amongst other commitments will see us reduce our scopes 1 & 2 GHG emissions by 30% by 2027 compared to 2021.

We are also the largest user of recycled polymers across our European peer group, making up almost half our total tonnage, and we have held the Green Mark since 2019 with over 70% green revenues.

We said that we would leverage sustainability leadership for growth, remain the champion of the most sustainable building solutions and extend our plastic recycling usage. As these sustainability targets are a key component of our strategy, they form an integral part of Executive and senior management remuneration to ensure reward is fully aligned with our strategic priorities. In 2023, we added the annual measure of carbon reduction into the annual bonus arrangements for a wider cohort of our managers.

Genuit Business System

Embedding the lean transformation of the business and creating a culture of continuous operational improvement and excellence is at the heart of our value creation strategy. The Genuit Business System (GBS) will enable the Group to standardise processes, share best practices and achieve benefits of scale, and will be at the core of our journey to achieving our medium-term >20% operating margin target.

In 2022, we started our journey to implement these principles as we began to deploy the GBS at Adey as our first Lean Lighthouse. We have seen significant productivity improvements, financial savings and space savings from this first lean site transformation.

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In 2023, we extended that Lean Lighthouse deployment across Polypipe Building Products, and we also commenced a further project in Horncastle that will accelerate in 2024.

The success of our Lean Lighthouse projects has energised our people and allowed us to continue the multi-year deployment of the Genuit Business System on a wider scale across the Group. In the first full year, over 10% of Genuit employees have now participated in lean Kaizen events or training - showing both the pace of deployment across the group and how much more progress and benefit there is to realise. We are very pleased with the results of this so far and believe that it will help to empower and inspire our people. Enabling our people to unlock the full potential of our business is at the heart of what we are building.

People and Culture

Our people are the heart of our business and the key driver of our success, and as such our growth strategy is highly focused on making sure that they are empowered to drive progress. Accordingly, we have continued to invest in talent, engagement and culture throughout 2023.

Core to the creation of a positive culture has been the creation of our Genuit Leadership Team (GLT) in 2022, consisting of c.70 of the top leaders across the Group. This group was instrumental in defining our new purpose (Together, we create sustainable living) and forming our trademark behaviours that will underpin our culture - We work together, We take ownership and We find a better way. Since this team will be instrumental in modelling and strengthening our culture and executing our strategy, we have focused our diversity and leadership development efforts with them first. We are proud that GLT membership now consists of 29% female leaders, and all of them will participate in a new Genuit Leadership Programme over the coming year.

We have also worked to strengthen the Group-wide talent pipeline in 2023 and are committed to providing accredited learning programmes through our graduate schemes and apprenticeships. Further, we have been able to develop an accredited programme to help our current workforce be better prepared for the future, learning basic manufacturing and lean tools. All these efforts have helped us increase the percentage of our workforce in such programmes to 8% - a significant improvement and a sign of the importance we place on career development. The year also saw us launch Workday - our new self-serve HR platform to make people management and development more effective, and in early 2024 we plan to undertake our first employee engagement survey. Additionally, our use of the Workplace platform has resulted in stronger cross-Group communication with all our colleagues.

Lastly, Genuit Group became a strategic partner of Construction Inclusion Coalition in 2023, extending our commitment to inclusion in this all-important industry.

Summary: We are well-placed for 2024 and beyond

Overall, this has been a year of significant strategic progress towards our medium-term targets. We have successfully created a more streamlined and effective business, leading to improved margins and a strong financial position that has given us the confidence to implement a progressive dividend policy. Across our strategic pillars we have made good progress, and the work that has been done to create a Group that can achieve growth and efficiencies, underpinned by sustainability and a strong culture, is evident.

The macro economic uncertainty that impacted the construction sector in 2023 is likely to continue into 2024, and the softness in volumes is therefore expected to continue across several markets. The strategic successes that we have achieved in 2023, however, mean that Genuit is in an excellent position to navigate the near-term market headwinds, and will be well-placed to benefit when the market normalises. I remain highly confident that we are moving in the right direction, and sustainability-driven tailwinds such as the need for increasing energy efficiency in heating and ventilation, stormwater solutions to address significant rainfall events and the need for lower carbon building materials will significantly benefit our businesses over the medium-term.

I would like to close by thanking all my colleagues at Genuit for their efforts in the year. Ever since I joined as CEO, I have been constantly impressed by their dedication, imagination, and hard work, and I look forward to continuing to work with them all to create sustainable living together.

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Business Unit Review
		2022	Change	LFL Change
Revenue	2023
£m	£m	%	%
Sustainable Building Solutions	242.8	282.5	(14.1)	(14.1)
Water Management Solutions	170.4	172.4	(1.2)	(1.8)
Climate Management Solutions	165.9	158.6	4.6	4.6
	579.1	613.5	(5.6)	(5.8)
Other*	7.4	8.7	(14.9)	(14.9)
Total Group	586.5	622.2	(5.7)	(6.0)

* Relates to assets held for sale which are not reported as part of the Group's Strategic Business Units.

Underlying operating profit	2023	ROS		2022	ROS	Change
£m	%*			£m	%*	Bps
Sustainable Building Solutions	53.1	21.9			59.3	21.0	90
Water Management Solutions	17.7	10.4		14.1	8.2	220
Climate Management Solutions	22.7	13.7		25.2	15.9	(220)
	93.5	16.1		98.6	16.1	-
Other**	0.6	8.1		(0.4)	(4.6)	1270
Total Group	94.1	16.0		98.2	15.8	20

• Return on sales (ROS) is equivalent to underlying operating margin (underlying operating profit/ revenue)
• Relates to assets held for sale which are not reported as part of the Group's Strategic Business Units.

Revenue, in the Strategic Business Units, for year ended 31 December 2023 was 5.6% lower than the prior year at £579.1m (2022: £613.5m). On a like-for-like basis, excluding the impact of acquisitions, revenue was 5.8% lower than prior year.

Ongoing self-help measures, deployment of the Genuit Business System and continued business simplification have strengthened our financial performance to offset continued levels of high inflation in materials, energy and labour costs. The team have worked hard on continuing to improve efficiencies, creating value and positioning us for growth.

We have built on the momentum from prior year in driving commercial excellence which has enabled us to successfully launch new products whilst balancing price and cost management. We have strived to improve our portfolio profit mix by taking ongoing actions on lower margin business. Against a backdrop of more challenging conditions, notably in the residential new build and RMI markets, we have continued optimising the cost base whilst maintaining capacity, investing in new equipment and boosting operational efficiency to ensure we are well positioned for improved market conditions.

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