Doncaster-based manufacturer Polypipe enjoys strong trading
Polypipe, one of Europe’s biggest manufacturers of plastic pipe systems, said it had enjoyed strong trading in recent weeks which places it on course to meet its full year targets.
The Doncaster-based firm is a significant global player, operating from 18 facilities.
In a trading update, Polypipe said: “An encouraging start to the year gives the board confidence of delivering its full year 2019 expectation.”
Group revenue for the four months ended April 30 2019 was £146.6m, 8.0 per cent higher than the prior year.
On a like-for-like basis excluding the impact of acquisitions, revenue was 3.0 per cent higher. Residential systems revenue, which represents 57 per cent of group revenue, was 8.4 per cent higher than the previous period.
Its performance was boosted by improved weather conditions and the acquisition of Manthorpe Building Products, a designer and manufacturer of moulded and extruded plastic and metal products.
The statement added: “This was partially offset by merchant pre-price increase forward buying into Q4 (the fourth quarter) of 2018.
“Manthorpe, acquired in October 2018, is performing in line with expectations and integration is going to plan.”
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Commercial and infrastructure systems revenue, representing 43 per cent of group revenue, was 7.6 per cent higher than the previous year.
Polypipe said its performance was buoyed by the continued success of new product launches in 2018, improved weather conditions, and the acquisition of Permavoid, a firm that supplies water management solutions.
Polypipe said Permavoid is performing in line with expectations, with integration now complete.
Martin Payne, the company’s chief executive, said: “Our leading position as a provider of sustainable water and climate management solutions continues to help us drive strong cash generation and deliver growth.
“Trading in recent weeks has remained strong with continued market share gains and end markets holding up well. We remain on track to deliver our expectations for the full year.”
Polypipe manufactures the UK’s widest range of plastic piping systems for heating, plumbing, drainage and ventilation. It primarily targets the UK and European building and construction markets and has more than 20,000 product lines.