20th Mar 2018 09:18
LONDON (Alliance News) - Polypipe Group PLC said on Tuesday it remained confident 2018 would be a year of further progress, following a strong performance in 2017 with growth in the UK and the agreed sale of its French business.
The FTSE 250-listed plastic piping manufacturer said pretax profit for the year rose by 3.9% to GBP55.6 million from GBP53.5 million the year before, and on an underlying basis, rose by 7.9% to GBP65.7 million from GBP60.9 million.
Revenue for the year was GBP411.7 million, up 6.3% from GBP387.2 million, due to double digit growth in its Residential Systems segment to GBP223.5 million from GBP202.7 million, following strong demand in the housebuilding sector supported by the Help to Buy scheme promoted by the UK government.
Revenue growth was derived almost entirely from the UK, as in January Polypipe entered advanced negotiations to sell Polypipe France Holding SAS for EUR16.5 million. As the deal is expected to conclude within the first half of 2018, Polypipe now regards the business as discontinued.
Polypipe declared a dividend of 11.1 pence per share, up 9.9% from 10.1p the year before.
The group said it expects Residential Systems to remain strong for 2018, as well as benefits from higher selling prices, however project delays are expected to hit short term performance, despite an encouraging pipeline.
"Against the backdrop of a mixed UK construction market performance, continued political and economic uncertainty, and challenges in some overseas markets, Polypipe has delivered strong results in line with our expectations by focusing on its core strategic growth drivers. UK construction market performance is likely to remain mixed, but with continued focus on our customers and a balanced exposure to the different sectors within construction, we look forward to another year of progression in 2018," said Chief Executive Officer Martin Payne.
Shares in Polypipe were flat at 397.40 pence on Tuesday.
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