Polypipe sees record performance in first half of 2017
Plastic pipe manufacturer Polypipe has beaten analsyts’ expectations and reported record results for the first half of 2017. The Doncaster-based water company saw an 8.4% increase in revenue (2% better than analysts’ predicted) to £242 million against the same period in 2016. On a like for like basis, that’s a 6.9% rise. Profit also rose against the comparable period by 5.3% to £31.5 million.
Polypipe’s share price is up 26% year-to-date
SOURCE: Yahoo Finance
The driver of this growth is the company’s domestic market in the UK, where revenue from residential business was up 9.2% year-over-year. The group’s smaller business in France also saw a strong improvement, with organic sales growth of 8.6% from the year-ago period.
During the six months to June 30, Polypipe has decided to close its Middle East manufacturing plant. This action was taken in response to the recent trade embargo between the United Arab Emirates and Qatar. However, the company says that this operation accounted for less than 1% of its overall revenue.
David Hall, Polypipe’s chief executive, said:
"The group has delivered another record performance, building on the strong momentum from last year and demonstrating that our strategic focus on structural growth opportunities is delivering results.
"Although underlying fundamentals remain positive, the group has experienced varying conditions in its different markets and has also faced some challenges in the first half of the year. I am encouraged by the way the business has risen to these challenges, which is further evidence of the depth and strength of management across the group.”
"As a result of our growth initiatives, balanced exposure to our markets and overall performance, the board is confident that the group will continue to make progress in line with management expectations for the year."
Dominion holds Polypipe in its Global Trends Managed Fund.
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