Polypipe profits surge to new heights
With house-builders increasingly preferring plastic to traditional clay pipes, Polypipe goes from strength to strength.
The plastic pipe maker, which floated on the London stock exchange in 2014, has again reported record financial results.
Polypipe group revenue for the year ended 31st December 2016 was 24% higher at £436.9m (2015: £352.9m). This was partly due to the £145m acquisition of ventilation equipment manufacturer Nuaire in August 2015, but on a like for like basis, excluding acquisitions and on a constant currency basis, revenue was more than 9% higher than the prior year.
Underlying operating profit was up 28% to £69.4m (2015: £54.2m), representing a record operating margin of 15.9% (2015: 15.4%).
Profit before tax was up 31% to £54.4m (2015: £41.5m).
Chief executive David Hall said that investment in capacity expansion projects was paused in the wake of the EU referendum result, but these soon resumed as confidence returned. “Whilst we took a measured response to slow capital expenditure relating to capacity expansion in the immediate aftermath of the EU referendum, as our confidence returned we recommenced those projects, which has the effect of having pushed forward around £3m of expenditure originally planned for 2016 into 2017. Despite this rescheduling, we still invested £19.1m during the year,” he said.
New products introduced during 2016 included a push-fit stainless steel manifold for the underfloor heating range, a range of cast-iron effect PVC rainwater hoppers, a squeezable cavity closure that requires no cutting on site, HDPE four-way boss pipes and low-level manifolds, and a range of guardrail and chain assembly accessories for Ridgistorm-XL installations.
David Hall said that further business growth was expected in 2017. "Following on from a record performance in 2016 I am confident that our strategic development initiatives will continue to deliver growth ahead of the market," he said.
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This article was published on 30 Mar 2017 (last updated on 30 Mar 2017).