Housebuilder demand boosts Polypipe

David Hall, chief executive of Polypipe Group.
David Hall, chief executive of Polypipe Group.
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​POLYPIPE, one of Europe’s biggest manufacturers of plastic pipe systems, reported strong demand from UK housebuilders, particularly from smaller developers and projects outside London and the South-East.

The Doncaster-based firm said revenue rose nine per cent to £327m in the year to December 31, although pre-tax profits fell from £25m to £17m following over £20m in costs relating to the group’s flotation last April.

Taking out these costs, pre-tax profits rose 53 per cent to £38m.

The firm reported good volumes from road and rail projects and the development of high rise, multi-occupancy buildings in London.

It has also seen a significant increase in sales of Water Management Solutions, driven by legislation aimed at reducing flood risk, and growth in Carbon Efficient Solutions supported by the need for higher performance ventilation systems.

In addition, its export levels were boosted by its growing presence in the Middle East.

Chief executive David Hall said: “I am delighted with the progress that we have made following the group’s successful IPO in April 2014 and these results show that we are delivering on the strategy we set out at that time.

​“​The ​g​roup’s growth ahead of a strong UK market during the year demonstrates our ability to seek out new opportunities for our Water Management and Carbon Efficient Solutions. Our growth initiatives, combined with this positive market backdrop in our main UK market, mean we entered 2015 with optimism and at this early stage of the year, we are confident that the ​g​roup will deliver results for the year in line with market expectations”.