Revenues and pre-tax profits rise at Polypipe

Annual results to December 31 2017 show that revenue at Polypipe increased 6% to £411m in 2017, with pre-tax profits of £55m; up 3.9% from £53.5m in 2016. 

On 31 January this year, the group announced that it had entered into advanced negotiations to sell Polypipe France Holding to Ryb, a France-based manufacturer and distributor of plastics in Europe. The cash consideration payable by Ryb will be €16.5m on a debt free, cash-free and normalised working capital basis. The deal is expected to complete in the first half of 2018.

Polpyipe said that there had been strong performance in UK and that its residential systems segment revenue growth of 10.3% had been driven by demand in the new house build sector. It said that RMI markets remain subdued.

The firm said it took “decisive action” to close aDubai factory and pursue alternative manufacturing strategy in the Middle East

Looking ahead to 2018, Polypipe said its commercial and infrastructure project pipeline remained encouraging, although project delays were impacting short-term performance.

Polypipe said the benefit of selling price increases, due to the pass-through of further polymer and other cost inflation, are expected to come through from second quarter.

 Martin Payne, chief executive officer, said: “Polypipe’s balanced business model, underpinned by the long-term growth drivers of legacy material substitution and continuing legislative tailwinds, has helped produce another record performance in 2017.

“Against the backdrop of a mixed UK construction market performance, continued political and economic uncertainty, and challenges in some overseas markets, Polypipe has delivered strong results in line with our expectations by focusing on its core strategic growth drivers. UK construction market performance is likely to remain mixed, but with continued focus on our customers and a balanced exposure to the different sectors within construction, we look forward to another year of progression in 2018.”