RECORD PERFORMANCE FOR POLYPIPE

Doncaster-based plastic pipes manufacturer Polypipe has increased revenue and profit in a ‘record performance’ for the business.

In its half year results for the six months to 30 June 2017, Polypipe’s revenue increased by 8.4 per cent to £242m from £223.3m in the same period in 2016. On a like for like basis the increase was 6.9 per cent.

Profit before tax at the company also increase by 5.3 per cent, to £31.5m, up from £29.9m in the first half of 2016.

Polypipe’s UK operations are fuelling the growth with revenue 6.8 per cent ahead and market outperformance.

There was continued success of strategic growth initiatives of legacy material substitution, carbon efficiency and water management.

The business’ UK Residential Systems segment was particularly strong with 9.2 per cent growth driven predominantly by new house builds.

In response to recent trade embargo between UAE and Qatar, the company has made the decision to temporarily cease manufacturing and reduce costs at its Middle East manufacturing plant which accounts for less than 1 per cent of group revenue.

David Hall, chief executive of Polypipe, said: “The group has delivered another record performance, building on the strong momentum from last year and demonstrating that our strategic focus on structural growth opportunities is delivering results.

“Although underlying fundamentals remain positive, the group has experienced varying conditions in its different markets and has also faced some challenges in the first half of the year.

“I am encouraged by the way the business has risen to these challenges which is further evidence of the depth and strength of management across the group.

“As a result of our growth initiatives, balanced exposure to our markets and overall performance, the board is confident that the group will continue to make progress in line with management expectations for the year.”

Source: Joshua Hammond, Insider Media, August 2017