27th May 2015 07:23
LONDON (Alliance News) - Plastic piping systems manufacturer Polypipe Group PLC saw its shares trade lower early Wednesday after it said its revenue growth in the first four months of the year was held back by a weak performance in Mainland Europe, despite good growth in its UK operations.
Polypipe shares were down 2.8% to 279.85 pence in early trade, one of the worst performers in the FTSE All-Share, as it said an 18% fall in revenue from its Mainland Europe business offset a 6.3% rise in revenue from its UK arm.
The European operations were hit hard by the continued weak market conditions in France, where housing starts were down 8.3% in the first quarter of the year.
In the UK, demand remained strong in the residential, commercial and infrastructure segments and there has been some signs of improvement in the repair, maintenance and improvement sector. Operating margins in the division are also ahead year-on-year.
Despite the European weakness, total revenue for the group was up 1.4% in the first four months to GBP112.4 million from GBP110.8 million a year earlier.
"Our growth initiatives combined with the continued positive market backdrop in our main UK market means we remain confident that the group will deliver results for the year in line with board expectations," said Chief Executive David Hall.
By Sam Unsted; [email protected]; @SamUAtAlliance
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