Polypipe annual profit to beat expectations

(Sharecast News) - Polypipe Group said annual profit would beat expectations as its business continued to recover from the Covid-19 crisis.
Underlying operating profit for the year to the end of December will be about £40m, exceeding the consensus forecast range of £35m to £37m, the plastic pipe maker said.

Revenue rose 8% in November from a year earlier as residential markets performed well. Operating margins benefited from rising volumes though operating inefficiencies caused by Covid-19 meant they were still below normal levels, the FTSE 250 company said.

The trading statement was Polypipe's second performance upgrade in less than a month. The company said on 17 November that revenue for the four months to the end of October was ahead of expectations.

"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 said on Monday.