(Alliance News) - Polypipe Group PLC on Tuesday reported the Covid-19 pandemic had a "significant" impact of its performance in March 2020, but business recovered well in the second half of the year.
The FTSE 250-listed plastic piping systems manufacturer also said it plans a name change next month.
Revenue was GBP398.6 million in 2020, down 11% from GBP447.6 million in 2019. This reflected an "unprecedented" trading environment in the second quarter but a "strong" recovery in the second half of the year.
Polypipe's 2020 pretax profit fell 60% to GBP23.8 million from GBP60.1 million in 2019, while underlying operating profit was GBP42.2 million, down 46% from GBP78.1 million in 2019. This is above the operating profit consensus range of GBP35 million to GBP37 million and just over company guidance of around GBP40 million.
These decreases are due to "significantly" lower volumes in the first half of the year, it said.
As a result, Polypipe declared a final 2020 dividend of 4.8 pence per share, up 20% from 4.0p in 2019.
Shares in Polypipe were up 3.8% at 580.00p in London on Tuesday.
"I would like to thank our employees who have risen to, and overcome, the challenges that we have faced in what was an unprecedented year. We have continued to invest in new products, technologies and businesses to emerge stronger out of the pandemic. Trading conditions since the end of the year, together with the structural growth markets we are aligned to, provide confidence in the outlook for the current year and over the medium term," says Chief Executive Martin Payne.
Looking ahead, Polypipe said it started the new year "strongly", with no discernable impact on demand from the current national lockdown in England.
"With our newly acquired businesses Adey, Nu-Heat and Plura, the board believes the group is in a strong position to deliver an improved performance in 2021," it said.
The company added it plans to change its name to Genuit Group PLC on April 6, "reflecting continued progression of the group, including the development of new product areas and the acquisition of a number of strong trading brands." It said however that Polypipe will remain one of its customer-facing brands.
By Zoe Wickens; zoewickens@alliancenews.com
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