St Dunstan’s church in Liverpool is large, impressive and something of a local landmark.
Grade II listed, it was built almost 140 years ago with all the pomp and grandeur of late Victorian times. For most of its history, the church was extremely draughty, too.
When renovation work began, however, local worthies wondered whether they might be able to make services a little warmer for congregants.
Plastic passion: Some 50% of Genuit’s plumbing products are made with recycled material
Ceilings were high, listing restrictions were in place and money was limited. But engineers had an idea – underfloor heating, known for warming rooms of every size and shape, often at a lower cost than traditional radiators.
The heating was installed by Genuit, formerly known as Polypipe. Short for ‘ingenuity’, Genuit is the UK’s largest supplier of plastic pipes and widgets for heating, plumbing and drainage work.
In recent years, the group has also positioned itself as a green business, helping developers, homeowners and commercial businesses to reduce their carbon footprint and use water more efficiently.
Around 50 per cent of Genuit’s plumbing products are made with recycled plastic, and chief executive Joe Vorih is keen to take that figure considerably higher. Headquartered in Leeds, the group runs its own recycling plant in Horncastle, Lincolnshire, turning cartons of milk, juice and detergent into plastic piping up to 3m wide.
Recycled plastic improves buildings’ environmental credentials when they are first built, but Genuit also helps to make older properties greener.
Underfloor heating is just one example – especially when combined with air source heat pumps, which are powered by electricity and will often slash energy bills.
Widely used in the Nordic countries, Central and Eastern Europe, they account for just 3 per cent of central heating in Britain. Our reluctance is understandable: initial costs are high and subsidies are far less generous than elsewhere.
But that is likely to change. New regulation comes in next year designed to slash carbon emissions from new homes. Heating and ventilation form a major part of this endeavour – and Genuit is in pole position to benefit.
The group also specialises in green roofing, whereby plants and grass help to absorb water and reduce flooding.
Some even benefit from a ‘blue’ element, where a layer of water lies beneath the greenery to irrigate it during dry summers.
The past few years have been tough for the property sector. Housebuilding volumes are 25 per cent lower than in 2019 and renovation spending has come down significantly, too.
Genuit has certainly suffered from the downturn, but boss Joe Vorih has worked hard to make the company more resilient – and his efforts are now beginning to bear fruit.
While sales are expected to be slightly lower this year than last, profit margins are growing as Vorih introduces more efficient ways of working. In Genuit’s Nuaire ventilation business, for example, production has risen 30 per cent, even as workers use less floorspace and spend less time assembling each unit.
Looking ahead, brokers forecast a 4 per cent increase in sales to £605million next year and rising to £640million in 2026.
Profits are expected to rise 9 per cent to more than £87million in 2025, with further strong growth the following year. Dividend increases are pencilled in, too, with 12.5p for this year, 12.8p for next and more than 13p in 2026.
Midas verdict: Genuit shares topped £8 in 2021. Today, they are £4.81. The stock has begun to gain ground in recent months but there should be plenty more to come, as interest rates come down, housebuilding picks up and homeowners start to spend more on upgrading their homes. Vorih’s efficiency drive adds grist to the mill. Buy.
Traded on: Main market Ticker: GEN Contact: genuitgroup.com or 0113 831 5315
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