20th Aug 2015 06:40
LONDON (Alliance News) - Plastic piping systems manufacturer Polypipe Group PLC on Thursday said it swung to profit in the first half of 2015 and lifted its dividend payout by more than half as a result.
The group said its pretax profit in the six months to the end of June was GBP23.2 million, compared to the GBP4.6 million loss it made a year earlier when its results were hit by costs related to its refinancing and its initial public offering in April 2014. Stripping out exceptional items, the group's pretax profit still rose 42% to GBP23.2 million from GBP16.4 million.
Polypipe said revenue was up to GBP170.4 million from GBP168.2 million in the year-earlier half, driven by 5.1% underlying revenue growth in the UK. Profit also was helped higher by a 150 basis point improvement in its operating margin in the half to 15%.
On the back of the results, Polypipe said it will pay an interim dividend of 2.3 pence per share, up 53% from the 1.5 pence per share it paid out a year earlier.
"The year started strongly supported by a strengthening market in the UK and we are well placed to capture our share of the anticipated market growth. Our strategic initiatives all continue to show good progress over and above the market and the recent acquisition of Nuaire will support our aims to accelerate our growth. I remain confident that we will deliver results for the full year in line with our expectations," said David Hall, Polypipe's chief executive.
By Sam Unsted; [email protected]; @SamUAtAlliance
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