DAVY VIEW

Genuit struggled to make progress in 2024 despite the continuing impact of self-help actions that enabled the group’s trading margin to expand for a second successive year. While it is encouraging that there are signs of stabilisation, we still believe the group’s prospects for an acceleration in its growth profile in 2025 remain dull. This is evident in the current expectation that underlying operating profit will remain rangebound. This lack of momentum has weighed on sentiment towards the stock which is currently around 10% lower than where it was a year ago. For this to change, we believe the group needs a more supportive operating backdrop from a UK construction market that accounts for around 90% of group revenues.