17th Nov 2015 08:32
LONDON (Alliance News) - Plastic piping systems manufacturer Polypipe Group PLC on Tuesday said revenue for the first ten months increased year-on-year but sales have slowed in the second half.
FTSE 250-listed Polypipe said its revenue for the ten months to the end of October was GBP299.3 million, up from GBP282.6 million a year earlier, with like-for-like revenue growth of 3.1%.
Reported revenue growth has, however, been pulled back slightly by polymer cost deflation being passed on to the company's customers and by weaker-than-expected demand from the UK repair, maintenance and improvement market, which had previously been flagged by builders' merchant Travis Perkins PLC and building products company SIG PLC.
This slowdown came into focus in the four months to the end of October, when like-for-like revenue growth slowed to 2.3%.
"In a period when there were two fewer working days our reported revenue growth has been distorted by the pass through of lower polymer costs and also the weaker than expected revenue from the RMI segment, I am pleased to be able to report that, as a result of margin improvements, we are trading in line with plan after ten months and expect our full year underlying operating profits to meet market expectations," said Chief Executive David Hall.
Shares in Polypipe were up 1.5% to 304.00 pence on Tuesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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