Polypipe Continues Record Growth Performance

Building products firm Polypipe has enjoyed a continuation of its record growth figures after reporting a strong first half performance, following on from its strong results in the first quarter of this year.

The company said that “after an excellent start, demand from all segments of our core UK market has remained strong.”

The group reported that order intake has stayed at a steady level with the normal season pattern and is yet to suggest and signs of weakening even after the result of the EU referendum.

In the first half of the year, revenue was £223.3 million, a 31% increase from last year and, excluding acquisitions, the revenue was 8.1% ahead of the previous year.

Underlying profit grew by 47% to £37.7 million, with pre-tax profit also increasing by 29% to £29.9 million, while the group’s operating margin was 16.9% for the half year, compared with 15.1% for the same time frame in the previous year.

David Hall, Chief Executive, said that the company has delivered another record performance in the first half of 2016 which continues their strong momentum built up in the previous year.

He put the growth acceleration down to their strategic focus on structural growth opportunities, along with the acquisition of their Nuaire ventilation business.

Hall added: “Despite the uncertain economic backdrop, the long-term structural drivers of our business remain strong, our balanced business model means that we are not overly exposed to any particular sector and the nature of the Group’s production processes enables us to adapt and flex quickly to changes in demand.”

The company’s board remains confident that the business’ cash generative characteristics and a commitment to stay ‘agile’ will allow the group to carry on its development and outperform, regardless of the market conditions.

The group reported that the Nuaire acquisition has been performing well, with some early success in specification of Nuaire systems with Polypipe duct.


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BDC 309 : Oct 2023