Progress for Polypipe following IPO
PLASTIC piping manufacturer Polypipe, which floated on the London Stock Exchange earlier this year, said it is well placed for future growth as its chief executive said he was “delighted” with the group’s performance since its IPO.
The Doncaster-based group floated in April, marking a return to the stock market after a 14 year absence.
For the half year to June 30, 2014, Polypipe saw revenue jump to £168.2m from £151.8m last time, while the group made a pre-tax loss of £4.6m compared to a £9.7m profit in the first half of 2013.
Operating profit was 29% higher at £22.7m from £17.6m in the prior period.
Net debt increased by £15.6m to £99.9m after the seasonal increase in net working capital of £12.1m and listing and refinancing costs of £18.2m.
Exceptional finance costs of £8.6m in relation to the refinancing were incurred in the period.
Despite reporting “cyclical economic conditions and conditions affecting the construction industry”, Polypipe saw strong demand for residential piping systems from UK housebuilders, increasingly from smaller developers and projects outside of London and the South-East.
A good level of demand from road and rail projects and the development of high rise, multi-occupancy buildings in London, a sharp increase in sales of water management solutions driven by the growing need for flood alleviation schemes, and strong sales growth in the Middle East and mining infrastructure projects in Africa were also reported.
David Hall, chief executive, said: “I am delighted with the progress that we have made following the group’s successful IPO earlier this year and these results show that we are delivering on the strategy we set out at the time.
“The group’s healthy growth in sales and underlying profits demonstrates the confidence returning to our sector and a deserved reward for operational improvements and investment we made when market conditions were much tougher. We are well placed to capitalise on the future growth opportunities and I remain confident that we will deliver results for the full year in line with our expectations at the time of the IPO.”
The group will pay a maiden interim dividend of 1.5 pence per share.
Founded in 1980, Polypipe is now one of Europe’s largest manufacturers of plastic piping systems, producing over 20,000 product lines which are used in the residential, commercial and infrastructure sectors.
