Listed manufacturer reports profit growth despite ‘backdrop of challenging market conditions’
Doncaster-headquartered Polypipe, a manufacturer of plastic piping and ventilation systems, has seen revenues rise by 5.2% to £433.2m in 2018.
For the year ending December 31 2018, the listed-company also reported a 5.3% rise in operating profits from £62.5m in 2017 to £65.8m, and a 4.7% jump in pre-tax profits from £55.6m to £58.2m.
During this period, Polypipe completed the sale of its French operation Polypipe France Holdings SAS, to Ryb S.A. for €16.5m on a debt and cash free normalised working capital basis.
The company also completed the acquisitions of Permavoid in August and Manthorpe Building Products in October 2018. Both of these companies contributed £4.1m to the group revenue which the company said is “in line with management expectation.”
Looking ahead, Polypipe said its markets remain “robust with a continued structural housing shortage in the UK, Help-to-Buy extended to 2023, historically low interest rates and good mortgage availability underpinning new housebuilding activity.”
However, the RMI and commercial and infrastructure markets have been and will continue to remain challenging.
Polypipe also noted that the impact of Brexit “is difficult to predict,” especially given the uncertainty around the nature of the exit.
Martin Payne, CEO of Polypipe, said: “We are delighted to report another record performance, despite a backdrop of challenging market conditions.
“Our second half of the year was strong, and we completed two significant acquisitions as part of our strategy to broaden our market offering. Both Manthorpe and Permavoid are performing in line with expectations and we look forward to further progress.
“We continue to see strong cash generation, and the long-term growth drivers of legacy material substitution and legislative tailwinds, together with our strong balance sheet, position us well for the future.”