Genuit Group: Edison
Industrials – LSE – M cap £933m – Price 374.50p – Non client QV
Focus on productivity and growth in FY25
(GEN’s ) FY24 revenue declined by 4.3% y-o-y to £561.3m due to subdued demand. However, market conditions stabilised in H224 with a 0.5% y-o-y revenue decline versus a 10.6% decline in H124. Reported operating profit decreased by 4.5% y-o-y to £59.2m, while underlying profit margin increased 40bp y-o-y to 16.4%, driven by productivity gains through the company’s Genuit Business System (GBS) and purchasing savings. Increased focus on working capital improvements resulted in underlying operating cash generation of £91.6m, representing 99.3% cash conversion on a post-capex basis. GEN further strengthened its balance sheet, reducing net debt/EBITDA to 0.9x (FY23: 1.1x). Underlying EPS decreased to 24.6p (FY23: 25.2p) due to lower operating profit and annualisation of the higher UK tax rate, while DPS increased to 12.5p (12.4p).
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