19th Nov 2019 09:15
(Alliance News) - FTSE 250-listed Polypipe Group PLC on Tuesday slightly lowered its annual estimates due to "poor" weather in the UK and "challenging" market conditions.
The plastic piping systems manufacturer reported resilient performance in "tough" markets, with revenue growth of 4.3% in the ten months to the end of October to GBP381.7 million from GBP365.9 million.
Trading in the last four months reflects strong 2018 comparatives and short-term political and economic uncertainty that is harming Polypipe's markets, it said, with revenue 1.7% higher than the prior year.
Since the end of October, however, Polypipe said this has been compounded by flooding and "poor" ground conditions, most notably in the north of England and the Midlands, meaning contractors and developers have not been able to access sites for civil work and groundworks activities.
As a result, Polypipe said it now expects underlying operating profit for the year to be just below its previous estimates.
"Despite increasingly challenging market conditions and the impact of the recent severe weather, we still expect to report good growth in profit, albeit just below our previous expectations," said Chief Executive Martin Payne.
"Fundamentals in the group's markets remain strong, with a structural housing shortage, historically low interest rates, real wage growth and near full employment which means that we view our future prospects with confidence," added Payne.
Polypipe shares were trading 3.2% lower in London on Tuesday morning at 461.40 pence each.
By Evelina Grecenko; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
PLP.L