(Alliance News) - Polypipe Group PLC on Tuesday reported moderate growth in 2019 and said it expects to make further progress going forward.
The FTSE 250-listed plastic piping systems manufacturer said pretax profit rose by 3.3% in 2019 to GBP60.14 million from GBP58.2 million, as revenue also improved by 3.3% to GBP447.6 million from GBP433.2 million.
The company noted that it has achieved growth despite challenging trading conditions and market uncertainty. Polypipe explained that housebuilders started 8% fewer plots compared to 2018 and investors delayed commercial projects.
In addition, merchants adjusted stock levels throughout the year, firstly for what they thought would be an EU withdrawal in March 2019 and then October 2019, and secondly for a slower second-half end-market.
"Our balance of end-markets, with their long-term growth drivers, together with good operational performance and contributions from our recent acquisitions positions us well," said Chief Executive Martin Payne.
Polypipe declared a final dividend of 12.1 pence a share, up 4.3% from 11.6p paid the year before.
Payne added: "Aside from the yet unknown effects of Coronavirus on the wider economy, we would expect the current year to be a year of progress for the group."
Polypipe shares were trading 1.8% higher in London on Tuesday at 474.60 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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