13th Aug 2019 08:16
(Alliance News) - Plastic piping firm Polypipe Group PLC on Tuesday reported "good" interim growth, meaning expectations for the rest of 2019 remain unchanged.
Revenue for the six months to June climbed 6.2% on the prior year to GBP223.3 million, helping pretax profit rise 4.3% to GBP31.4 million. Like-for-like revenue rose 1.0%.
On an underlying basis, FTSE 250 Polypipe's pretax profit increased by 8.2% to GBP35.6 million.
Polypipe has increased the interim dividend by 8.1%, to 4.0 pence per share.
Chief Executive Martin Payne said: "The business has performed well in the first half with good revenue growth and improved margins through selective cost reductions and acquisitions. The medium-term fundamentals of our markets remain strong.
"Whilst we are mindful of current political and economic uncertainty, management continues to focus on self-help measures and together with an encouraging start to the second half, the board's profit expectations for the year remain unchanged."
Looking segmentally, revenue in the Residential Systems unit rose 8.4%, and 0.8% like-for-like, to GBP129.0 million. Underlying operating profit climbed 12% to GBP26.6 million.
This business did well, Polypipe said, despite continuing political and economic uncertainty. The main driver of growth was Manthorpe, which was bought for GBP52 million in October 2018, though Polypipe said revenue growth without acquisitions was "credible".
The other business, Commercial & Infrastructure Systems, delivered revenue of GBP94.3 million and underlying operating profit of GBP12.7 million, up 3.4% and 1.6% respectively. Like-for-like revenue growth was 1.1%.
The unit operated in a challenging environment, Polypipe continued, though performance was "solid".
Polypipe shares were 2.1% lower on Tuesday in London at a price of 394.90p a share.
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