The Genuit Group Plc final dividend of 8.3 pence (2022: 8.2 pence) per share is being recommended for payment on 5 June 2024 to shareholders on the register at the close of business on 3 May 2024. The ex-dividend date will be 2 May 2024. The proposed increase in the full-year dividend reflects the Group's strong balance sheet and confidence in its medium-term strategy.
The Group aims to pay a progressive dividend, based on dividend cover of 2.0x or greater over the business cycle. The Directors intend that the Group will pay the total annual dividend in two tranches, an interim dividend and a final dividend, announced at the time of publication of the interim and preliminary results.
Other financial highlights include:
- Underlying operating margin up 20 basis points to 16.0%, despite a full year market-driven revenue reduction of 5.7%, demonstrating continued progress towards the Group's medium-term operating margin target of >20%.
- A full year volume reduction of 12.4% was partially offset by new product launches, balanced price and cost management and business simplification projects, resulting in a 4.2% year-on-year reduction in underlying operating profit.
- £15m of annualised cost savings underpinned across 2022 and 2023, partially offsetting inflationary headwinds and market-driven volume softness.
- Reported operating profit of £62.0m (2022: £53.4m) increased 16.1% year-on-year. On an underlying basis, operating profit was £94.1m (2022: £98.2m).
- Strong underlying operating cash generation of £82.5m (87.7% cash conversion), with net debt reduced from 1.2 times to 1.1 times underlying pro-forma EBITDA, in line with expectations.
- Underlying EPS decreased to 25.2p, predominantly as a result of increased tax and interest costs.
