14 Dec 2020 07:00
14 December 2020
Polypipe Group plc
TRADING UPDATE
Polypipe Group plc ("Polypipe", the "Company" or the "Group"), a leading provider of sustainable water and climate management solutions for the built environment, today issues an update on recent trading.
Trading
Our trading update announced on 17 November 2020 noted continued recovery ahead of expectations in our markets through the third quarter to 31 October 2020. Since then, performance in November and the likely outcome for December has again exceeded expectations. Group revenue for November was 8.0% higher than the prior year, with Residential markets performing particularly well. Operating margins continue to benefit from the drop through on this improved volume, although they are still not back to normal levels due to operating inefficiencies caused by COVID-19.
Consequently, the Board now expects underlying operating profit for the year to 31 December 2020 to be circa £40m, compared to the current consensus range of £35m-37m.
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.
Enquiries:
Polypipe +44 (0) 1709 770 000
Martin Payne, Chief Executive Officer
Paul James, Chief Financial Officer
Brunswick +44 (0) 2074 045 959
Nina Coad
Sophia Lazarus
This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) No 596/2014.
Notes to Editors:
Polypipe Group plc ("Polypipe", the "Company" or the "Group"), a leading provider of sustainable water and climate management solutions for the built environment, 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 19 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, the Netherlands and the Middle East and sales to specific niches in the rest of the world