(Alliance News) - Genuit Group PLC on Tuesday reported a drop in revenue, but lifted its dividend as profit rose.

The Leeds, England-based provider of water, climate and ventilation systems for buildings and infrastructure said revenue in 2023 fell 5.7% to GBP586.5 million from GBP622.2 million the year before. This was mainly due to lower sales in its Sustainable Building Solutions division, with revenue dropping by 14%.

Pretax profit rose 6.6% however, to GBP48.4 million from GBP45.4 million a year ago, as selling and distribution costs fell 8.6% to GBP74.5 million from GBP81.5 million in 2022.

Genuit declared a total dividend per share of 12.4 pence, up slightly from 12.3p the previous year.

Going forward, Genuit said its 2024 trading has started in line with expectations, despite market uncertainty.

Chief Executive Officer Joe Vorih 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.

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."

Shares in Genuit rose 2.1% to 410.50 pence each in London on Tuesday morning.

By Sabrina Penty, Alliance News reporter

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