‘Resilient’ performance reported by listed manufacturer
Doncaster-based manufacturer Polypipe Group has seen its revenue rise by 4.3% higher to £381.7m (2018: £365.9m) despite “tough” market conditions.
The company, which makes plastic piping and ventilation systems, has today published an update on trading for the 10 months ended 31 October 2019.
It said it had experienced good contributions from its acquisitions, and has managed a resilient performance despite demanding circumstances.
The firm’s update said its markets had been hit by short term political and economic uncertainty, adding: “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.
“The Group remains highly cash-generative and the long-term fundamentals of our markets remain robust.”
Martin Payne, chief executive officer, said: “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 we view our future prospects with confidence“.
