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Trading statements

Polypipe on track to meet full year expectations

24 May 2017 07:14

Polypipe said as a result of continued strong organic growth in UK residential systems and solid performances from its commercial and infrastructure systems segments, it was on track to achieve management expectations for the full year.

Revenue for the four months to 30 April 2017 was 6% higher than the prior year at £157.8m (2016: £148.9m), and 4.6% higher on a like for like basis.

The UK business achieved growth of 4.8%, although underlying performance was somewhat stronger because of the way price increases affected merchant buying patterns.

Last year demand was pulled forward into April 2016 because of imminent price increases at that time and again into December 2016 as a result of imminent price increases in early 2017.

Revenue in UK residential systems increased 7.1% compared to the same period last year with strong demand from housebuilders, particularly for underground products helped by the mild winter.

The UK commercial and infrastructure systems segment delivered solid growth of 3.4%, notwithstanding very strong comparables and the impact of delays in the timing of new roads projects.

UK operating margins were in line with expectations, slightly lower than the prior year.

The company said it was benefitting from selling price increases implemented to cover polymer and other inflationary costs in the second half of 2016.

MAINLAND EUROPEAN OPERATIONS

Reported revenue for the four months ended 30 April 2017 was 14% ahead of the prior year, and on a like for like constant currency basis was 4.2% ahead.

The general economic environment appeared to be improving and this performance represented good progress.

The business continued to be profitable but at lower margins than the UK.

Story provided by StockMarketWire.com

Related Company: PLP

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