Polypipe Group PLC Trading Update (8136T)
19 November 2019 - 6:00PM
UK Regulatory
TIDMPLP
RNS Number : 8136T
Polypipe Group PLC
19 November 2019
Polypipe Group plc
Trading Update
____________________________________________________________________________________________________
19 November 2019
Polypipe Group plc ("Polypipe", the "Company" or the "Group"), a
leading provider of sustainable water and climate management
solutions for the built environment, today issues an update on
trading for the 10 months ended 31 October 2019.
Trading update for 10 months to 31 October 2019
-- Resilient performance in tough markets with Group revenue
4.3% higher at GBP381.7m (2018: GBP365.9m)
-- Operating margins 30 bps higher driven by margin accretive
acquisitions and strong cost controls
-- Continued good contribution from acquisitions, which are
performing well. M&A pipeline remains encouraging
-- Trading in the last four months reflects strong 2018
comparatives and short term political and economic uncertainty
impacting our markets, with Group revenue 1.7% higher than the
prior year. Since the end of October, this has been compounded by
flooding and poor ground conditions, most notably in the North and
the Midlands, meaning contractors and developers have not been able
to access sites for civils and groundworks activities
-- Against this backdrop, the Board now expects underlying
operating profit for the year to be just below its previous
expectations
-- Group remains highly cash-generative and the long-term
fundamentals of our markets remain robust
Performance in the Residential Systems segment in the four
months ended 31 October 2019 was broadly consistent with the first
half of the year with revenue 7.9% higher than the prior year, with
a robust performance against strong comparatives in difficult
market conditions boosted by a healthy contribution from Manthorpe
Building Products, which was acquired in October 2018. This leaves
revenue for the ten months ended 31 October 2019 8.2% higher than
the prior period. Manthorpe continues to perform ahead of
expectations and the integration programme remains on track to be
completed by the end of the year as planned.
Against strong comparatives, the Commercial and Infrastructure
Systems segment saw revenue decline by 5.8% in the four months
ended 31 October 2019. Trading became tougher in this period with
performance impacted by increased project delays in the UK
commercial construction sector as political and economic
uncertainty impacted investment decisions, partly offset by a good
performance in Roads and contributions from the Permavoid business
acquired in August 2018 as well as the recently acquired Alderburgh
business, both of which are performing to expectations. Revenue for
the ten months ended 31 October 2019 is 0.6% lower than prior year
on a reported basis after benefitting from a good first half
performance.
Martin Payne, Chief Executive Officer, commented:
"Despite increasingly challenging market conditions and the
impact of the recent severe weather, we still expect to report good
growth in profits, albeit just below our previous expectations.
Fundamentals in the Group's markets remain strong, with a
structural housing shortage, historically low interest rates, real
wage growth and near full employment which means that we view our
future prospects with confidence".
For further information, please contact:
Polypipe +44 (0) 1709 770 000
Martin Payne, Chief Executive Officer
Paul James, Chief Financial Officer
Brunswick +44 (0) 2074 045 959
Nina Coad
Dan Roberts
Full year results for year ended 31 December 2019 will be
reported on 17 March 2020.
Notes to Editors:
Polypipe Group plc ("Polypipe", the "Company" or the "Group"), a
leading provider of sustainable water and climate management
solutions for the built environment, is the largest manufacturer in
the UK, and among the ten largest manufacturers in Europe, of
plastic piping systems for the residential, commercial, civils and
infrastructure sectors by revenue. It is also a leading designer
and manufacturer of energy efficient ventilation systems in the
UK.
The Group operates from 20 facilities in total, and with over
20,000 product lines, manufactures the UK's widest range of plastic
piping systems for heating, plumbing, drainage and ventilation. The
Group primarily targets the UK and European building and
construction markets with a presence in Italy, the Netherlands and
the Middle East and sales to specific niches in the rest of the
world.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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