(Alliance News) - Shares rose in Polypipe Group PLC on Monday morning as it announced an rise in its expectations for operating profit, following continued recovery in the fourth quarter of 2020 to date.
Shares in the Doncaster-based plastic piping systems maker were 9.3% higher at 499.50 pence on Monday, the best performer in the FTSE 250 index.
For November, Polypipe said that its performance in November had exceeded expectations, with revenue for the month up 8.0% year-on-year due to a strong performance in Residential markets.
Operating margins have continued to benefit from the improved volume, however they have not yet reached normal levels due to operating inefficiencies caused by Covid-19.
Looking ahead, Polypipe said its performance for December is also likely to beat expectations. As a result, for 2020 as a whole, the group has guided for underlying operating profit to be around GBP40 million.
This is above the consensus range of GBP35 million to GBP37 million, but still reflects a 49% fall from GBP78.1 million reported for 2019.
"The group enters the new year with a strong order book and some cautious optimism, although uncertainty currently exists about the effects of a no-deal Brexit," Polypipe stated.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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