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Thu October 17 2019

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Construction suppliers report positive trading

23 May While the government is in turmoil and economic uncertainty surrounds the UK economy, domestic suppliers to the construction industry seem to be coping just fine.

Polypipe's sales are up 8% in the first four months of 2019
Polypipe's sales are up 8% in the first four months of 2019

Three different suppliers to the UK construction industry have released trading updates today and all report a positive start to 2019.

Plastic pipes producer Polypipe says that “an encouraging start to the year gives the board confidence of delivering its full year 2019 expectations.” Group revenue for the first four months of 2019 was up 8% on last year to £146.6m (2018: £135.7m). On a like-for-like basis, excluding the impact of acquisitions, revenue was up 3.0% higher.

Chief executive Martin Payne said: “Our leading position as a provider of sustainable water and climate management solutions continues to help us drive strong cash generation and deliver growth. Trading in recent weeks has remained strong with continued market share gains and end markets holding up well. We remain on track to deliver our expectations for the full year." 

Brick and tile maker Ibstock, buoyed by continuing demand from the new build housing market, says that it “has made a solid start to the year, with underlying market conditions remaining stable despite ongoing political and economic uncertainty in the UK”

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The Ibstock board said: “Market fundamentals in the UK remain robust, supporting the demand for new housing over the medium term, which should continue to underpin activity levels in both our clay brick and concrete businesses. Overall, our expectations for the full year are unchanged and the board anticipates another year of progress for the group.”

Plant and tool hire chain HSS is also making good progress having sold the UK Platforms powered access business to Nationwide Platforms (part of Loxam) for £47.5m in January. Like-for-like revenue in the 13 weeks to 30th March 2019 was up 6.5% to £82.2m, with adjusted EBITDA up nearly 19% to £13.1m.

HSS Hire Group chief executive Steve Ashmore said: "I am pleased to report a good start to the year with growth in revenue and profit which, with the disposal of UK Platforms, resulted in a significant reduction in leverage.

“While the broader economic outlook remains uncertain, our leaner operating model, excellent market positions and clear strategy leave us well placed to continue to grow share in any market."   

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