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Polypipe IPO cost £12.4m

18 Aug 14 Plastic pipe producer Polypipe has shown a steady start to life on the London stock exchange, reporting first-half numbers that reflect market growth.

Polypipe was floated in the stock exchange in April this year. Today it reported its results for the six months to 30 June 2014. Revenue was up 11% on last year to £168.2m and basic operating profit was up 29% to £22.7m.

However, initial public offerings (IPOs) are a costly business and exceptional charges of £12.4m were incurred in relation to the flotation costs. A further £8.6m of exceptional finance costs were incurred from a debt refinancing.

As a result the business made a pre-tax loss of £4.6m for the first half, compared to a £9.7m profit for the same period last year.

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There was strong demand for residential piping systems from UK housebuilders, increasingly from smaller developers and projects outside of London and the southeast. There was also good demand from road and rail projects, new high-rise apartment blocks in London and from flood alleviation schemes.

Chief executive David Hall said: "I am delighted with the progress that we have made following the group's successful IPO earlier this year and these results show that we are delivering on the strategy we set out at the time. The group's healthy growth in sales and underlying profits demonstrates the confidence returning to our sector and a deserved reward for operational improvements and investment we made when market conditions were much tougher. We are well placed to capitalise on the future growth opportunities and I remain confident that we will deliver results for the full year in line with our expectations at the time of the IPO."

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