17th Nov 2020 10:36
(Alliance News) - Polypipe Group PLC on Tuesday said its trading has improved following a tricky first-half and added that it is yet to see any significant hurt from the current lockdown in England.
The FTSE 250 firm - a maker of plastic piping systems for plumbing, drainage, heating and ventilation - said trading has recovered in recent months.
In the four months to October 31, revenue fell 1.5% year-on-year to GBP156.1 million from GBP158.4 million. The 1.5% decline compared to favourably to the 22% annual revenue plunge it posted in the first-half.
"Operating margins have also improved compared to the first six months as volumes recovered during this period despite the group bearing the ongoing costs of dealing with Covid-19," Polypipe added.
Although there is still uncertainty over the current lockdown in England, due to end in early December, Polypipe said it has so far seen no "significant changes to demand patterns".
It expects underlying operating profit of at least GBP35 million. The current consensus range is between GBP30 million and GBP35 million.
During the four-month period, Polypipe's Residential Systems segment saw a revenue decline of 3.9%, tempered from a 28% slump in the first half.
"This has been driven by the UK housing market recovering faster and stronger than expected," Polypipe added.
The Commercial & Infrastructure segment's revenue was 1.9% higher year-on-year. Revenue there for the 10 months ended October 31 was 7.6% lower than the prior year.
Overall, the group's revenue for the ten months ended October 31, 2020 was 14% lower than prior year.
Chief Executive of Polypipe, said: "The group's end markets in the UK have continued to recover ahead of expectations, and I am pleased that the group's resilient performance in the last four months has reflected this. I would like to thank our colleagues around the group for their continued dedication and support in achieving these results.
"Looking into 2021, we have strong medium-term fundamentals in our markets, and sustainability at the heart of our business, although we remain alert to the broader macro related risks in the market. The board remains confident that the group is well positioned for the future."
Polypipe shares were 1.2% lower at 511.00 pence each in London on Tuesday morning.
By Zoe Wickens; [email protected]
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