UK construction boosts Polypipe despite European problems

MANUFACTURER Polypipe has seen a UK sales hike after commercial and infrastructure construction picked up in the first four months of the year.

Domestic revenues increased £6m although group revenues increased by only £2m, to £112m.

New build commercial and infrastructure construction gave the firm a boost and the firm said “it is encouraging to see some improvement in repair [and] maintenance” which would only increase demand for its products. Operating margins for UK operations are already ahead of last year.

However, activity in commercial and infrastructure on mainland Europe took a £4m hit, declining from £20.8m for the four months ending April 2014. Polypipe blamed this on a decline in residential builds in France, down 8.3% in the three month period to March 2015.

David Hall, chief executive of Polypipe said: “Our growth initiatives combined with the continued positive market backdrop in our main UK market means we remain confident that the group will deliver results for the year in line with board expectations.”