Recovery for listed manufacturer despite drop in revenue and profits
Manufacturer Polypipe Group has released its audited results for the year ended 31 December 2020, posting a revenue decline of 10.9%, which it says reflects an unprecedented trading environment in quarter two.
But the Doncaster-headquartered company, which makes plastic piping and ventilation systems, says this was followed by a strong recovery, with its second half figures in line with the prior year.
Its 2020 revenues were £398.6m, down from £447.6m in 2019, while pre-tax profits fell 60.4% from £60.1m to £23.8m.
Polypipe says that despite these challenges it has continued with its strategic investment in the business, with capital expenditure of £25.1m.
It completed a capital raise of £120m in half one to strengthen its balance sheet allowing continued investment in new businesses, products and technology through the pandemic.
In February 2021, the Group acquired three businesses; Adey, Nu-Heat and Plura – with a strongly supported £96m capital raise helping to fund the Adey acquisition.
And Polypipe says it will be changing its name to Genuit Group plc on 6 April 2021.
This change is intended to reflect continued progression of the Group, including the development of new product areas and the acquisition of a number of strong trading brands.
Martin Payne, the company’s chief executive officer, said: “I would like to thank our employees who have risen to, and overcome, the challenges that we have faced in what was an unprecedented year.
“The health and wellbeing of our colleagues, customers and communities remains our priority.
“We have continued to invest in new products, technologies and businesses to emerge stronger out of the pandemic.
“Trading conditions since the end of the year, together with the structural growth markets we are aligned to, provide confidence in the outlook for the current year and over the medium term.”