Genuit Group plc cut its earnings guidance on Monday, sending shares in the FTSE 250 firm sharply lower, after uncertainty around the upcoming Budget and the weaker economic backdrop hit demand.
The company - a specialist in water, climate and ventilation products - said revenues in the four months to 31 October had risen by 7.1%, or 3.7% on a like-for-like basis.
Genuit said the uptick in sales demonstrated "resilience and market share gains in a subdued market".
However, it now expects full-year underlying operating profit to come in between £92m and £95m. Consensus has been for profits between £95m and £99m.
Genuit acknowledged: "The group expects the current subdued market conditions to persist for the remainder of 2025 and into early 2026, driven by the uncertainty surrounding the potential impacts of the UK government Budget in November and the current economic outlook."
Shares in the firm tumbled as trading got underway, losing 10% at 319p as at 0815 GMT.
Joe Vorih, chief executive, said: "Genuit has delivered a resilient performance in the second half to date against persistently challenging market conditions.
"We are hopeful the Budget will confirm policies that are supportive of our industry. We are well position to supply a material increase in construction activity given the right conditions."
Genuit is due to post results for the year to 31 December in March 2026.