23 May 2018 07:00
Polypipe Group plc
Trading Update
23 May 2018
Polypipe Group plc ("Polypipe" or the "Group"), a leading manufacturer of plastic piping and ventilation systems for the residential, commercial, civils and infrastructure sectors, today issues an update on trading for the four months ended 30 April 2018 ahead of its Annual General Meeting which takes place at 1030hrs (BST) today at the Holiday Inn, High Road, Doncaster, DN4 9UX. Polypipe will report its interim results for the six months ending 30 June 2018 on 14 August 2018.
Trading update
The Board remains confident of delivering its full year 2018 expectations.
Revenue for the four months ended 30 April 2018 was 0.9% lower than the prior year at £135.7m (2017: £136.9m). Adverse weather conditions in late February and March impacted our customers' ability to work on site, reducing revenue by approximately £8m. Underlying revenue growth, excluding the impact of the adverse weather, was approximately 5.0%. Trading in the latter part of April, after the effects of adverse weather had passed, was consistent with this adjusted growth rate.
The following table sets out Group revenue by operating segment:
| Four months ended 30 April |
| ||||
|
2018 |
2017 |
Change |
|
| |
Revenue | £m |
| £m | % |
|
|
|
|
|
|
|
|
|
Residential Systems | 77.5 |
| 73.9 | 4.9 |
|
|
Commercial and Infrastructure Systems | 58.2 |
| 63.0
| (7.6) |
|
|
Group | 135.7 |
| 136.9 | (0.9) |
|
|
Our Residential Systems segment has continued to deliver strong organic revenue growth driven by a buoyant new house build market. Revenue performance in our Commercial and Infrastructure Systems segment experienced a continuation of the trends highlighted in March 2018 at the full year results with project delays in road and other commercial projects impacting short-term performance.
Outlook
Latest forecasts from the Construction Products Association show a broadly flat construction market for 2018. The Board believes that with continued focus on the core elements of its strategy the Group remains well placed to grow revenue ahead of the market. The Board remains confident of delivering its full year 2018 expectations.
For further information please contact:
Polypipe +44 (0) 1709 770 000
Martin Payne, Chief Executive Officer
Paul James, Chief Financial Officer
Brunswick +44 (0) 20 7404 5959
Nina Coad
Emma Walsh
A copy of this trading update will be available on our website http://ir.polypipe.com today from 0700hrs (BST).
Notes to Editors:
Polypipe is the largest manufacturer in the UK, and among the ten largest manufacturers in Europe, of plastic piping systems for the residential, commercial, civils and infrastructure sectors by revenue. It is also a leading designer and manufacturer of energy efficient ventilation systems in the UK.
The Group operates from 17 facilities in total, and with over 20,000 product lines, manufactures the UK's widest range of plastic piping systems for heating, plumbing, drainage and ventilation. The Group primarily targets the UK and European building and construction markets with a presence in Italy and the Middle East and sales to specific niches in the rest of the world.