(Alliance News) - Polypipe Group PLC on Tuesday posted a double-digit revenue fall and said its profit was almost wiped out during a first half battered by Covd-19.
Promisingly for the FTSE 250 firm - a maker of plastic piping systems for plumbing, drainage, heating and ventilation - trading in recent months has recovered from bruising lows seen in April.
Revenue in the six months to June 30 dropped 22% year-on-year to GBP173.6 million from GBP223.3 million. Polypipe's pretax profit plunged 93% to GBP2.3 million from GBP31.4 million.
"We entered the Covid-19 crisis trading well and in line with expectations. Trading overall for the period has been resilient with revenue 22% below prior year. There has been progressive improvement from April's low point revenue of 66% below prior year, with June revenue being 19% below prior year and on an improving trend into July and August," Polypipe said.
The company turned to cost cuts to try and mitigate the effects of the virus outbreak. Polypipe cancelled its final 2019 dividend and also decided against an interim payout for 2020, after returning 4.0 pence per share a year earlier.
"However, the board will consider paying a final dividend for 2020 in May 2021 subject to continued performance," Polypipe said.
The company at one point had 1,771 employees furloughed and warned of 250 redundancies but in the end, only 104 were laid off.
Shares in Polypipe were 6.3% higher at 433.50p each in London on Tuesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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