7th Jul 2020 11:09
(Alliance News) - Polypipe Group PLC on Tuesday said it plans to cut 250 jobs - or 8% of its workforce - as forecast predicts demand in the construction industry will be significantly hurt throughout 2021.
The company - which makes plastic piping systems for plumbing, drainage, heating and ventilation - said forecasts from the Construction Products Association show that residential new build demand in 2021 is likely to be 20% lower than 2019 levels, Housing RMI 15% lower than 2019 levels, and commercial demand 18% lower than 2019 levels, even with recovery in the second half of 2021.
Turning to current trading, Polypipe said its has seen an improvement in its revenue, with income from June 30% below 2019 levels compared to a 66% decline recorded in April. Overall, revenue for the six months to June 30 was 24% lower year-on-year.
Looking ahead, the company said: "Whilst there is inevitable uncertainty in the near term, the board remains confident it is taking the necessary actions to continue to deliver long-term sustainable returns in markets that remain fundamentally attractive. With this current level of uncertainty, we are not yet reinstating financial guidance, and this remains under review by the board for the time being."
Polypipe shares were trading 1.8% lower at 441.76 pence each on Tuesday morning in London and 19% lower than at the start of the year.
By Ife Taiwo; [email protected].
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