19th Mar 2019 08:46
LONDON (Alliance News) - Polypipe Group PLC on Tuesday reported single-digit growth in revenue and profit despite challenging market conditions.
The plastic piping systems manufacturer said pretax profit grew by 4.7% in 2018 to GBP58.2 million from GBP55.6 million a year prior, on a revenue of GBP433.2 million, up 5.2% from GBP411.7 million.
Revenue includes GBP4.1 million generated by Permavoid Ltd and Manthorpe Building Products Holdings Ltd, and excluding the effects of these acquisitions, Polypipe's revenue was 4.2% higher.
Permavoid was acquired at the end of August 2018 for an initial consideration of GBP4.0 million, while Manthorpe was bought on October 25 last year for GBP52.1 million in cash.
In 2018, the company said it used 44,700 tonnes of recycled plastics, which represents 40% of its overall plastic usage compared to 34% in 2017.
Polypipe proposed final dividend of 7.9 pence, bringing the total payout for the year to 11.6p, up 4.5% on the year prior.
"We are delighted to report another record performance, despite a backdrop of challenging market conditions," said Chief Executive Martin Payne.
"We continue to see strong cash generation, and the long-term growth drivers of legacy material substitution and legislative tailwinds, together with our strong balance sheet, position us well for the future," added Payne.
Meanwhile, Peel Hunt cut its rating on the stock to Add from Buy.
Polypipe shares were trading 7.2% lower on Tuesday at 401.36p each.
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