Polypipe shares surge on back of “resilient” first half
Polypipe, a manufacturer of plastic piping and ventilation systems for the residential, commercial, civil, and infrastructure sectors, posted its first half results for the year this week. Those results clearly demonstrate an underlying business that the group described as “resilient”. The company said that its financials met expectations and reiterated its guidance for the full year, which it said it would meet despite difficulties. Polypipe’s share price surged as a result.
Shares in Polypipe shot up by 8% on the back of robust earnings
SOURCE: Yahoo Finance
Despite difficult weather conditions, UK revenues increased by 1% year on year - that’s a slowdown from the previous period, but in light of the headwinds faced, it represents a robust business. If you strip out the effects of weather, organic growth for the first half would come in at 5% - a much more impressive figure. The company’s cash from operations also increased by 6% year on year, with revenue from UK residential systems (+6% against the first half of 2017) driving results.
The company’s chief executive, Martin Payne, made the following statement: “Against a backdrop of mixed market conditions and adverse weather the group has performed well in the first half. With the group’s balanced business model, underpinned by the long-term growth drivers of legacy material substitution and continuing legislative tailwinds in water management and climate change, I am confident the group will make good progress in the second half of the year.”
Dominion holds Polypipe in its Global Trends Managed Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.