DAVY VIEW

It had been hoped there would be a renewed momentum to Genuit following its recent acquisitions. However, market conditions continue to obstruct the scope for near-term organic growth. The mid-point of the revised adjusted operating profit guidance for 2025 suggests a circa 3-4% cut to the current consensus estimate. The recent £100m+ of M&A investment will add impetus into next year, but we believe the stock will struggle to re-rate in the absence of underlying operating progress.