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Trading Statement

RNS Number : 5982L
Polypipe Group PLC
08 July 2014
 



 

8 July 2014

Polypipe Group plc

Trading Update

 

Polypipe Group plc ("Polypipe" or the "Group"), a leading manufacturer of plastic piping systems for the residential, commercial, civils and infrastructure sectors, today announces an update on trading for the five months ended 31 May 2014. The purpose of this announcement is to inform the market of progress since the company's IPO in April 2014. Polypipe will report its interim results for the six months ending 30 June 2014 on 18 August 2014.

 

The Group has maintained its positive trading performance in 2014, with results for the first five months of the year ahead of the same period in the prior year, as well as budget.

 

Both divisions - Residential Piping Systems division and Commercial and Infrastructure Piping Systems - performed ahead of the same period last year, with Group revenue for the five months ended 31 May 2014 increasing by 11.4% as compared to the same period last year. In addition, Group EBITDA margins improved compared to the same period last year.

 

As set out in the Polypipe's IPO prospectus dated 11 April 2014, following admission of the Company's shares to trading, the Company issued a redemption notice to the holders of the Group's £150 million 9.5% Senior Secured Notes due in 2015 (the "Notes").  The Notes were refinanced using the Group's new £120 million five year term loan facility and existing cash resources.  Polypipe confirms that the redemption of the Notes has now been completed.

 

The Directors are confident about the current prospects of the Group and the outturn for the financial year.

 

David Hall, Chief Executive Officer, commented:

"I am delighted with the progress that Polypipe has continued to make following the Group's successful IPO in April 2014. This is a strong performance, even once you factor in last year's market weakness, and we remain confident about the Group's current prospects for the full year."

 

 

Contacts:

 

Polypipe

David Hall, Chief Executive Officer

Peter Shepherd, Chief Financial Officer

 

+44 (0) 1709 770 000

Brunswick

Azadeh Varzi

Simon Maine

+44 (0) 20 7404 5959

 

A copy of this trading statement will be available on our website http://ir.polypipe.com/ today from 7.00am.

  

Notes to Editors:

 

Polypipe is the largest manufacturer in the United Kingdom, and among the ten largest manufacturers in Europe, of plastic pipe systems for the residential, commercial, civils and infrastructure sectors by revenue. The Group operates from 16 facilities in total, and with over 20,000 product lines, manufactures the United Kingdom's widest range of plastic piping systems within its target markets. The Group primarily targets the UK, French and Irish building and construction markets with a presence in Italy and the Middle East and sales to specific niches in the rest of the world.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
TSTSSASUWFLSESW

Trading Update

RNS Number : 2484O
Polypipe Group PLC
27 May 2015
 



Polypipe Group plc

 

Trading Update

 

27 May 2015

 

Polypipe Group plc ("Polypipe" or the "Group"), issues this update on trading for the four months ended 30 April 2015 ahead of its Annual General Meeting which takes place at 11:00 am today at the Holiday Inn, High Road, Doncaster, DN4 9UX. 

 

Polypipe will report its interim results for the six months ending 30 June 2015 on 20 August 2015.

 

Trading Results

 

The Group has maintained its positive trading performance in its main UK market during the first four months of 2015 with revenue growth from UK operations of 6.3% (7.6% adjusting for one less working day this period) ahead of the same period in the prior year.  Revenue from our Commercial and Infrastructure business in Mainland Europe (mainly in France) declined by 18.3% in the period (8.9% at constant exchange rates). The revenue performance for each reporting segment was as follows:

 


Four months

Four months


Revenue

ended  April 2015

ended April

2014

 

Change






£m



£m

%

 

Residential

59.4



55.5

7.0

Commercial and Infrastructure - UK

  39.6



37.6

         5.3

UK Operations

99.0



93.1

6.3

 

Commercial and Infrastructure  - Mainland Europe

 

17.0



 

20.8

 

     (18.3)

 

Inter Segment

 

(3.6)



 

(3.1)


 

-

 

Group

 

112.4



 

110.8

 

1.4

 

 

David Hall, Chief Executive, commented:

 

"Our growth initiatives combined with the continued positive market backdrop in our main UK market means we remain confident that the Group will deliver results for the year in line with board expectations."

 

UK Operations

 

Against a strong first four months last year, a period when new build residential and commercial and infrastructure construction started the year very strongly, our UK operations performed well achieving growth of 7.6% (working day adjusted) for the four month period.  Demand continues to grow across the residential, commercial and infrastructure sectors we serve and within residential it is encouraging to see some improvement in the repair, maintenance and improvement (RMI) activity which remains well below previous levels.  We continue to benefit from our strategic growth initiatives in the areas of Water Management and Carbon Efficient Solutions.  Export sales to the Gulf region have also performed well in the period.

 

Operating margins for our UK operations are ahead of the prior year after four months.

 

 

 

 

Mainland European Operations

 

Revenue for the four month period ended April 2015 was down 18.3% on prior year.   At constant exchange rates the revenue decline over this period was 8.9% with housing starts in France, an indication of activity for this segment, down 8.3% in the three month period to March 2015.

 

The continuing weak market conditions in France has had a very limited impact on the overall Group operating result and the operations remained marginally profitable during the period.  The adverse currency translation effect on earnings also has very little impact on the overall Group operating result.

 

 

Contacts:

 

Polypipe

David Hall, Chief Executive Officer

Peter Shepherd, Chief Financial Officer

+44 (0) 1709 770 000

 

Brunswick

Mike Smith

Simon Maine

+44 (0) 20 7404 5959

 

A copy of this trading statement will be available on our website:

http://ir.polypipe.com/(http://ir.polypipe.com) today from 7.00 am.

 

Notes to Editors:

 

Polypipe is the largest manufacturer in the United Kingdom, and among the ten largest manufacturers in Europe, of plastic pipe systems for the residential, commercial, civils and infrastructure sectors by revenue.  The Group operates from 16 facilities in total, and with over 20,000 product lines, manufactures the United Kingdom's widest range of plastic piping systems within its target markets.  The Group primarily targets the UK, French and Irish building and construction markets with a presence in Italy and the Middle East and sales to specific niches in the rest of the world.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
TSTAFMJTMBBTBBA

Trading Update

RNS Number : 8814F
Polypipe Group PLC
17 November 2015
 

Polypipe Group plc

 

Trading Update

 

17 November 2015


Polypipe Group plc ("PLP" or the "Group"), today issues an update on trading for the ten months ended 31 October 2015 and confirms its full year expectations in respect of underlying operating profit.


Trading update


The Group's revenue for the ten months ended 31 October 2015 was £299.3m (2014: £282.6m) an improvement of 5.9% over the same period in the prior year.  Excluding acquisitions and eliminating currency movements and the impact of fewer working days this period, like-for-like revenue growth for the Group over this ten month period was 3.1%.  Reported revenue growth has been impacted by polymer cost deflation passed onto our customers and by weaker than expected demand from the residential repair, maintenance and improvement segment.  These trends were particularly prevalent in the four month trading period ended 31 October 2015 when like-for-like revenue growth was 2.3%.


The Group's underlying operating profit, including the contributions from the Surestop and Nuaire businesses acquired this year, remains on plan and the Group expects its full year underlying operating profit to be in line with market expectations as a result of margin improvement from lower polymer and distribution costs and continuing efficiency gains.


The revenue performance for each reporting segment was as follows:

 


 

 

Ten months ended Oct.


 

Four months ended Oct. 2015

Revenue

 

2015

 

2014

 

Change

Like-for-like change*


Like-for-like

change*








 


£m

£m

%

 

%


%

 

Residential

155.4

148.9

4.4

1.9


-

 

Commercial and Infrastructure - 
UK

 

  109.7

 

96.0

 

14.3

 

4.4

 

2.5

 

 

UK Operations

 

265.1

 

244.9

 

8.2

 

2.9


 

0.8

 

 

Commercial and Infrastructure  - Mainland Europe

 

 

42.9

 

 

47.2

 

 

(9.1)

 

 

1.5


 

 

7.3

 

 

Inter Segment

 

(8.7)

 

(9.5)





 

 

Group

 

299.3

 

282.6

 

5.9

 

3.1


 

2.3

 

 

* excluding acquisitions and at constant exchange rates and working days






 

 

 

David Hall, Chief Executive, commented:


"In a period when there were two fewer working days our reported revenue growth has been distorted by the pass through of lower polymer costs and also the weaker than expected revenue from the RMI segment, I am pleased to be able to report that, as a result of margin improvements, we are trading in line with plan after ten months and expect our full year underlying operating profits to meet market expectations.


The Nuaire ventilation business which we acquired in August this year is trading in line with our expectations and I am pleased with the way this recently acquired business has settled into the Group."


UK Operations


Our UK operations generated like-for-like revenue growth of 2.9% during the ten month period ended 31 October 2015.  In the four month trading period ended 31 October 2015 our like-for-like revenue growth declined to 0.8% primarily as a result of polymer cost deflation pass through and weaker than expected demand from the residential repair, maintenance and improvement "(RMI)" segment.  Demand from the residential new build segment remained robust.


We believe the market fundamentals in the UK remain positive and legislation continues to support the pursuit of our growth initiatives in carbon and water.


Mainland European Operations


Revenue for the ten month period ended 31 October 2015 was down 9.1% on the prior year on a reported basis due to adverse currency translation, but up 1.5% on a like-for-like basis.  During the four month period ended 31 October 2015 like-for-like revenue grew by 7.3%, which is a creditable performance during a period when the French market remained subdued.  Our Mainland European businesses, mainly in France, continue to trade profitably and their results after ten months at constant exchange rates are slightly ahead of the same period in the prior year.


Contacts:


Polypipe

David Hall, Chief Executive Officer

Peter Shepherd, Chief Financial Officer

+44 (0) 1709 770 000


Brunswick

Mike Smith

Nina Coad

+44 (0) 20 7404 5959


A copy of this trading statement will be available on our website

http://ir.polypipe.com today from 7.00 am.


Notes to Editors:


Polypipe is the largest manufacturer in the United Kingdom, and among the ten largest manufacturers in Europe, of plastic pipe systems for the residential, commercial, civils and infrastructure sectors by revenue.  The recently acquired Nuaire business is a leading designer and manufacturer of energy efficient ventilation systems in the UK.


The Group operates from 19 facilities in total, and with over 20,000 product lines, manufactures the United Kingdom's widest range of engineered plastic piping systems for heating, plumbing, drainage and ventilation.  The Group primarily targets the UK, French and Irish building and construction markets with a presence in Italy and the Middle East and sales to specific niches in the rest of the world.

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
TSTBFBATMBTBBBA

Trading Update

RNS Number : 7606Y
Polypipe Group PLC
25 May 2016
 

Polypipe Group plc

 

Trading Update

___________________________________________________________________________________

 

25th May 2016

 

Polypipe Group plc ("Polypipe" or the "Group"), issues this update on trading for the four months ended 30th April 2016 ahead of its Annual General Meeting which takes place at 10:30 am today at the Holiday Inn, High Road, Doncaster, DN4 9UX. 

 

Polypipe will report its interim results for the six months ending 30th June 2016 on 16th August 2016.

 

Trading Results

 

The revenue performance for each reporting segment was as follows:

 


Four months

Four months


Revenue

ended April 2016

ended April 2015

Change






£m


£m


%

 

Residential Piping Systems

70.6


59.4


18.9

Commercial and Infrastructure Piping Systems - UK

60.9


39.6


53.8

Inter Segment

(3.4)


(3.1)



UK Operations

128.1


95.9


33.6

 

Commercial and Infrastructure - Mainland Europe

 

21.2


 

17.0


 

24.7

 

Inter Segment

 

(0.4)


 

(0.5)


 

 

 

Group

 

148.9


 

112.4


 

32.5

 

Group revenue for the four months ended April 2016 was 32.5% ahead of the comparative period in 2015.  This revenue growth comprised:

 

Organic growth

9.7%

(UK operations 8.0%)

Acquisitions

21.4%


Currency

1.4%


Total revenue growth

32.5%


 

UK Operations

 

A favourable market backdrop combined with an element of re-stocking and additional stocking ahead of our price increases by merchant customers has delivered strong organic revenue growth of 8.0% for the four months ended April 2016. Our ventilation business, which now includes Nuaire, has also continued to perform strongly.  Residential new build volumes (c. 24% of Group revenue in 2015) have remained robust and we are encouraged by signs of improvement in the private RMI sector (c. 27% of Group revenue in 2015).  The UK's infrastructure projects pipeline is developing as forecast, which combined with infrastructure for new residential development, has helped drive strong sales growth for our water management products.  Export sales to the Gulf region have also performed well in the period and we are making good progress with setting up a manufacturing unit to produce some of our most space hungry water management products in Dubai.

 

Operating margins for our UK operations for the four months ended April 2016 were ahead of the comparative period in 2015 due to the operational gearing benefits arising from the organic revenue growth.

 

Mainland European Operations

 

Reported revenue for the four months ended April 2016 was 24.7% ahead of the comparative period in 2015.  Revenue growth on a constant currency basis was 18.2%. The market in France appears to have stabilised and is showing early indications a slight upward trend and we have gained some market share and also benefitted from some merchant restocking.  The business continues to be profitable but at low margins.

 

David Hall, Chief Executive, commented:

 

"Our growth initiatives combined with the continued positive fundamentals in our main UK market have delivered an excellent start to the year. Whilst we remain alert to the potential impact of continuing short term economic and political uncertainty in our core UK market, with this strong start we believe that the Group is well positioned to deliver results for the full year in line with expectations".

 

 

Contacts:

 

Polypipe

David Hall, Chief Executive Officer

Peter Shepherd, Retiring Chief Financial Officer (for queries to 3rd June 2016)

Martin Payne, Incoming Chief Financial Officer

+44 (0) 1709 770 000

 

Brunswick

Mike Smith

Nina Coad

+44 (0) 20 7404 5959

 

A copy of this trading statement will be available on our website

http://ir.polypipe.com/(http://ir.polypipe.com) today from 7.00 am.

 

Notes to Editors:

 

Polypipe is the largest manufacturer in the United Kingdom, and among the ten largest manufacturers in Europe, of plastic piping systems for the residential, commercial, civils and infrastructure sectors by revenue. The recently acquired Nuaire business is a leading designer and manufacturer of energy efficient ventilation systems in the UK.

 

The Group operates from nineteen facilities in total, and with over 20,000 product lines, manufactures the United Kingdom's widest range of plastic piping systems for heating, plumbing, drainage and ventilation. The Group primarily targets the UK, French and Irish building and construction markets with a presence in Italy and the Middle East and sales to specific niches in the rest of the world.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
TSTALMBTMBIBBBF

Trading Update

RNS Number : 1289P
Polypipe Group PLC
15 November 2016
 

Polypipe Group plc

 

Trading Update

___________________________________________________________________________________

 

15 November 2016

 

Polypipe Group plc ("PLP" or the "Group"), today issues an update on trading for the ten months ended 31 October 2016.

 

Trading update

 

As a result of continued strong organic growth, and a pleasing performance from our Nuaire business acquired in August 2015, we are on track to achieve management expectations for the full year. 

 

The Group's revenue for the ten months ended 31 October 2016 was 23.7% higher at £370.3m (2015: £299.3m) compared to the prior year, with our overseas revenue benefitting from the weaker sterling exchange rate.  Excluding acquisitions and at constant currency, like-for-like* revenue growth for the Group over this ten-month period was 7.1%. The strong like-for-like* growth in the UK in the first half of this financial year has continued, with no impact on revenue and order intake since the EU Referendum. Revenue growth in the UK remained strong in the four months ended 31 October 2016 at 8.0% on a like-for-like* basis, with growth in both UK Residential and UK Commercial and Infrastructure segments continuing.

 

The decline in sterling has adversely impacted our polymer input costs, although we are confident of recovering this impact through increasing our selling prices, as we have successfully done in the past. There is inevitably a time lag for the benefit of these price increases to materialise which will have a slight impact on margins in the second half of this financial year.

 

Our cash conversion remains strong and year end net debt will be in line with management expectations.

 

The revenue performance for each reporting segment was as follows:


 

 

Ten months to October


 

Four months to October 2016

Revenue

 

2016

 

2015

 

Change

Like-for-like change*


Like-for-like

change*









£m


£m

%

 

%


%

Residential

175.7


155.4

13.1

4.6


4.2

Commercial and Infrastructure - UK

 

Inter Segment

 

155.8

 

(8.8)


  109.7

 

(7.3)

       42.0

14.1


14.9

UK Operations

322.7


257.8

25.2

8.0


8.0

 

Commercial and Infrastructure  - Mainland Europe

 

 

49.0


 

 

42.9

 

 

14.2

 

 

2.5


 

 

(9.9)

 

Inter Segment

 

(1.4)


 

(1.4)


 

 


 

 




 

Group

 

370.3


 

299.3

 

23.7

 

7.1


 

5.1

 

* Like for like excludes acquisitions and is on constant exchange rates

 

 

 

 

UK Operations

 

Our UK operations generated like-for-like revenue growth of 8.0% during the ten months ended 31 October 2016.  In the four months ended 31 October 2016 our like-for-like revenue increased 8.0% with the Residential segment growing 4.2% supported by increased demand from the national housebuilders, and the Commercial and infrastructure UK segment continuing to grow strongly at 14.9%, slightly ahead of the first half.

 

Mainland European Operations

 

Revenue for the ten months ended 31 October 2016 was 14.2% higher than the prior year on a reported basis due to favourable currency translation, and up 2.5% on a like-for-like basis.  As anticipated, during the four months ended 31 October 2016 the distributor pull forward arising in the first half from promotional timing unwound, resulting in like-for-like revenue falling by 9.9%.  Our mainland European operations are expected to remain profitable for the full year.  

 

David Hall, Chief Executive, commented:

 

"Our business continues to perform well following the EU referendum, with both orders and revenue ahead of the same period last year. I have confidence that our broad based exposure to UK residential, commercial and infrastructure sectors of the construction market, a broad range of quality products, strong customer relationships and market leading technical expertise leaves us well positioned for 2017."  

 

Contacts:

 

Polypipe

David Hall, Chief Executive Officer

Martin Payne, Chief Financial Officer

+44 (0) 1709 770 000

 

Brunswick

Mike Smith

Nina Coad

+44 (0) 20 7404 5959

 

Notes to Editors:

 

Polypipe is the largest manufacturer in the United Kingdom, and among the ten largest manufacturers in Europe, of plastic pipe systems for the residential, commercial, civils and infrastructure sectors by revenue.  With the acquisition of the Nuaire business in August 2015, Polypipe is also a leading designer and manufacturer of energy efficient ventilation systems in the UK.

 

The Group operates from 19 facilities in total, and with over 20,000 product lines, manufactures the United Kingdom's widest range of engineered plastic piping systems for heating, plumbing, drainage and ventilation.  The Group primarily targets the UK, French and Irish building and construction markets with a presence in Italy and the Middle East and sales to specific niches in the rest of the world.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
TSTBIBITMBABBPF

Trading Update

RNS Number : 0216G
Polypipe Group PLC
24 May 2017
 

Polypipe Group plc

 

Trading Update

___________________________________________________________________________________

 

24 May 2017

 

Polypipe Group plc ("Polypipe" or the "Group"), a leading manufacturer of plastic piping and ventilation systems for the residential, commercial, civils and infrastructure sectors, today issues an update on trading for the four months ended 30 April 2017 ahead of its Annual General Meeting which takes place at 1030hrs (BST) today at the Holiday Inn, High Road, Doncaster, DN4 9UX. Polypipe will report its interim results for the six months ending 30 June 2017 on 8 August 2017.

 

Trading update

 

As a result of continued strong organic growth in the UK Residential Systems segment and solid performances from our Commercial and Infrastructure Systems segments, we are on track to achieve management expectations for the full year.

 

Revenue for the four months ended 30 April 2017 was 6.0% higher than the prior year at £157.8m (2016: £148.9m), and 4.6% higher on a like for like* basis.

 

The following table sets out Group revenue by operating segment:

 


Four months ended 30 April



 

2017

 

2016

 

Change

LFL

Change*


Revenue

£m


£m

%

%









Residential Systems

75.6


70.6

7.1

7.1


Commercial and Infrastructure Systems - UK

63.0


  60.9

 

3.4

3.4


Inter-segment sales

 

(4.3)

 


(3.4)




UK operations

134.3


128.1

4.8

4.8


 

Commercial and Infrastructure Systems - Mainland Europe

 

 

24.2


 

 

21.2

 

 

14.0

 

 

4.2


 

Inter-segment sales

 

(0.7)


 

(0.4)


 

 


 

 









 

Group

 

157.8


 

148.9

 

6.0

 

4.6


 

* Like for like (LFL) measures are at constant currency translation. The structure of the Group is the same in both periods so no adjustment is necessary for acquisitions or disposals.

 

UK operations

 

The UK business achieved growth of 4.8%, although underlying performance is somewhat stronger because of the way price increases affected merchant buying patterns. Last year demand was pulled forward into April 2016 because of imminent price increases at that time and again into December 2016 as a result of imminent price increases in early 2017.

 

Revenue in our UK Residential Systems segment increased 7.1% compared to the same period last year with strong demand from housebuilders, particularly for underground products helped by the mild winter. Our UK Commercial and Infrastructure Systems segment delivered solid growth of 3.4%, notwithstanding very strong comparables and the impact of delays in the timing of new roads projects.

 

UK operating margins are in line with expectations, slightly lower than the prior year and we are progressively benefitting from selling price increases implemented to cover polymer and other inflationary costs seen in the second half of 2016.

 

Mainland European operations

 

Reported revenue for the four months ended 30 April 2017 was 14.0% ahead of the prior year, and on a like for like constant currency basis was 4.2% ahead. The general economic environment appears to be improving and this performance represents good progress. The business continues to be profitable but at lower margins than the UK.

 

David Hall, Chief Executive, commented:

 

"We continue to deliver good organic growth through our long-term structural drivers of legacy material substitution, legislative tailwinds in water management and carbon efficiency, and development of selected export markets. I am encouraged by our progress in recovering cost inflation to date, and whilst we remain alert to the potential effects of economic and political uncertainty on our markets, we continue to believe the Group is well placed to achieve management expectations for the full year."

 

For further information please contact:

 

Polypipe                                             +44 (0) 1709 770 000

David Hall, Chief Executive Officer

Martin Payne, Chief Financial Officer

 

Brunswick                                          +44 (0) 20 7404 5959

Mike Smith

Will Rowberry

 

A copy of this trading update will be available on our website http://ir.polypipe.com today from 0700hrs (BST).

 

Notes to Editors:

 

Polypipe is the largest manufacturer in the UK, and among the ten largest manufacturers in Europe, of plastic piping systems for the residential, commercial, civils and infrastructure sectors by revenue.  It is also a leading designer and manufacturer of energy efficient ventilation systems in the UK.

 

The Group operates from 20 facilities in total, and with over 20,000 product lines, manufactures the UK's widest range of plastic piping systems for heating, plumbing, drainage and ventilation.  The Group primarily targets the UK, French and Irish building and construction markets with a presence in Italy and the Middle East and sales to specific niches in the rest of the world.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
TSTAJMATMBITBLR

Trading Update

RNS Number : 3724W
Polypipe Group PLC
14 November 2017
 

Polypipe Group plc

 

Trading Update

___________________________________________________________________________________

 

14 November 2017

 

Polypipe Group plc ("Polypipe", the "Company" or the "Group"), a leading manufacturer of plastic piping and ventilation systems for the residential, commercial, civils and infrastructure sectors, today issues an update on trading for the ten months ended 31 October 2017.

 

Trading update

 

Strong organic growth in our UK Residential Systems and Mainland Europe segments, both helped by relatively buoyant new house building activity, has driven continued growth ahead of the market in the ten months ended 31 October 2017, leaving the Group on track to achieve management expectations for the full year.

 

Revenue for the ten months ended 31 October 2017 was 8.2% higher than the prior year at £400.6m (2016: £370.3m), and 7.1% higher on a like for like* basis. Like for like revenue growth in the four months to 31 October 2017 was marginally higher than that recorded in the first half of the year at 7.3%.

 

The following table sets out Group revenue by operating segment:

 


         Ten months ended 31 October        


Four Months ended 31 October 2017



 

2017

 

2016

 

Change

LFL

Change*


LFL

Change*


Revenue

£m


£m

%

%


%











Residential Systems

193.1


175.7

9.9

9.9


11.1


Commercial and Infrastructure Systems - UK

161.6


  155.8

 

3.6

3.6


1.0


Inter-segment sales

 

(11.3)

 


(8.8)






UK operations

343.4


322.7

6.4

6.4


6.0


 

Commercial and Infrastructure Systems - Mainland Europe

 

 

58.9


 

 

49.0

 

 

19.9

 

 

11.2


 

 

16.0


 

Inter-segment sales

 

(1.7)


 

(1.4)


 

 















 

Group

 

400.6


 

370.3

 

8.2

 

7.1


 

7.3


 

*Like for like (LFL) measures are at constant currency translation. The structure of the Group is the same in both periods so no adjustment is necessary for acquisitions or disposals.

 

UK operations

 

Our UK operations achieved revenue growth of 6.4% in the ten months ended 31 October 2017. The price increases implemented progressively throughout the first half of this year account for approximately 3.0%, leaving volume growth at 3.4%, ahead of the market.

 

Revenue in our UK Residential Systems segment increased 9.9% compared to the same period last year, driven by continued strong demand from new housebuild, with strong underground demand beginning to be matched latterly by strengthening demand for above ground products as developers start to build out newly developed sites. Both private and public RMI markets remain difficult. Our UK Commercial and Infrastructure Systems segment delivered solid growth of 3.6%, for the ten months ended 31 October 2017 despite strong comparables, delays in some of the larger roads and commercial building projects in the UK, and the continued issues in the Middle East. Our manufacturing facility in Dubai (for which the results are reported in this UK segment) remains closed, and the Qatar situation shows no sign of improving. A limited number of small projects outside Qatar continue to be supplied from Dubai and the situation regarding manufacturing in Dubai remains under review.

 

Second half UK operating margins will be higher than in the equivalent period in 2016 following first half price increases to recover post EU Referendum polymer and other inflationary cost increases. However, further polymer cost inflation driven by currency movements and tightening global supply during the year means that full year operating margins in the UK will be marginally behind the prior year. Further price increases are planned for the new year to recover this cost inflation.

 

Mainland European operations

 

Revenue for the ten months ended 31 October 2017 was 19.9% ahead of the prior year, and on a like for like basis was 11.2% ahead. The general economic environment in France continues to be helpful with our business capitalising on this and performing well. The business continues to be profitable but at lower margins than the UK.

 

Martin Payne, Chief Executive Officer, commented:

 

"Whilst the UK new housebuild market continues to perform well helped by increasing demand for our water management and attenuation products, commercial, infrastructure and RMI markets remain challenging. Against this backdrop, the Group continues to deliver strong organic growth ahead of the overall UK construction market, demonstrating the resilience of its balanced exposure to the different sectors within that market, and the continued success of its strategic growth pillars of legacy material substitution and legislative tailwinds in water management and carbon efficiency. Whilst we remain vigilant in the face of continued political and economic uncertainty, we believe the Group is well placed to achieve management expectations for the full year."

 

For further information, please contact:

 

Enquiries:                         

Polypipe                                                      +44 (0) 1709 770 000

Martin Payne, Chief Executive Officer

                                   

Brunswick                                                    +44 (0) 2074 045 959

Tim Danaher

Will Rowberry

                                                                    

Notes to Editors:

Polypipe is the largest manufacturer in the UK, and among the ten largest manufacturers in Europe, of plastic piping systems for the residential, commercial, civils and infrastructure sectors by revenue.  It is also a leading designer and manufacturer of energy efficient ventilation systems in the UK.

 

The Group operates from 20 facilities in total, and with over 20,000 product lines, manufactures the UK's widest range of plastic piping systems for heating, plumbing, drainage and ventilation. The Group primarily targets the UK, French and Irish building and construction markets with a presence in Italy and the Middle East and sales to specific niches in the rest of the world.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
TSTBJBRTMBJBBBR

Trading Update

RNS Number : 9405O
Polypipe Group PLC
23 May 2018
 

Polypipe Group plc

 

Trading Update

 

 

23 May 2018

 

Polypipe Group plc ("Polypipe" or the "Group"), a leading manufacturer of plastic piping and ventilation systems for the residential, commercial, civils and infrastructure sectors, today issues an update on trading for the four months ended 30 April 2018 ahead of its Annual General Meeting which takes place at 1030hrs (BST) today at the Holiday Inn, High Road, Doncaster, DN4 9UX. Polypipe will report its interim results for the six months ending 30 June 2018 on 14 August 2018.

 

 

Trading update

 

The Board remains confident of delivering its full year 2018 expectations.

 

Revenue for the four months ended 30 April 2018 was 0.9% lower than the prior year at £135.7m (2017: £136.9m). Adverse weather conditions in late February and March impacted our customers' ability to work on site, reducing revenue by approximately £8m. Underlying revenue growth, excluding the impact of the adverse weather, was approximately 5.0%. Trading in the latter part of April, after the effects of adverse weather had passed, was consistent with this adjusted growth rate.

 

The following table sets out Group revenue by operating segment:

 

 

Four months ended 30 April

 

 

 

2018

 

2017

 

Change

 

 

Revenue

£m

 

£m

%

 

 

 

 

 

 

 

 

 

Residential Systems

77.5

 

73.9

4.9

 

 

Commercial and Infrastructure Systems

58.2

 

  63.0

 

(7.6)

 

 

Group

135.7

 

136.9

(0.9)

 

 

 

 

Our Residential Systems segment has continued to deliver strong organic revenue growth driven by a buoyant new house build market. Revenue performance in our Commercial and Infrastructure Systems segment experienced a continuation of the trends highlighted in March 2018 at the full year results with project delays in road and other commercial projects impacting short-term performance.

 

 

Outlook

 

Latest forecasts from the Construction Products Association show a broadly flat construction market for 2018. The Board believes that with continued focus on the core elements of its strategy the Group remains well placed to grow revenue ahead of the market. The Board remains confident of delivering its full year 2018 expectations.

 

 

For further information please contact:

 

Polypipe                                             +44 (0) 1709 770 000

Martin Payne, Chief Executive Officer

Paul James, Chief Financial Officer

 

Brunswick                                           +44 (0) 20 7404 5959

Nina Coad

Emma Walsh

 

A copy of this trading update will be available on our website http://ir.polypipe.com today from 0700hrs (BST).

 

 

 

Notes to Editors:

 

Polypipe is the largest manufacturer in the UK, and among the ten largest manufacturers in Europe, of plastic piping systems for the residential, commercial, civils and infrastructure sectors by revenue.  It is also a leading designer and manufacturer of energy efficient ventilation systems in the UK.

 

The Group operates from 17 facilities in total, and with over 20,000 product lines, manufactures the UK's widest range of plastic piping systems for heating, plumbing, drainage and ventilation.  The Group primarily targets the UK and European building and construction markets with a presence in Italy and the Middle East and sales to specific niches in the rest of the world.

 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
TSTATMFTMBTTBLP

Trading Update

RNS Number : 8356H
Polypipe Group PLC
20 November 2018
 

Polypipe Group plc

 

Trading Update

____________________________________________________________________________________________________

 

20 November 2018

 

Polypipe Group plc ("Polypipe", the "Company" or the "Group"), a leading manufacturer of plastic piping and ventilation systems for the residential, commercial, civils and infrastructure sectors, today issues an update on trading for the ten months ended 31 October 2018.  Trading is in line with the Board's expectations and our outlook for the full year is unchanged.

 

Trading update

 

Continued strong organic growth in our Residential Systems, together with a significant improvement in performance in our Commercial and Infrastructure Systems segment, has delivered like for like* revenue growth of 10.2% in the four months ended 31 October 2018.

 

Revenue for the ten months ended 31 October 2018 was 4.5% higher than the prior year at £365.9m (2017: £350.2m), and 4.1% higher on a like for like* basis.

 

The following table sets out Group revenue by operating segment:

 

 

         Ten months ended 31 October        

 

Four Months ended 31 October 2018

 

 

 

2018

 

2017

 

Change

LFL

Change*

 

LFL

Change*

 

Revenue

£m

 

£m

%

%

 

%

 

 

 

 

 

 

 

 

 

 

Residential Systems

204.3

 

188.6

+8.3

+8.1

 

+11.5

 

Commercial and Infrastructure Systems

161.6

 

161.6 

 

-

-0.6

 

+8.6

 

 

 

 

 

 

 

 

 

 

Group

365.9

 

350.2

+4.5

+4.1

 

+10.2

 

 

*Like for like (LFL) measures are at constant currency translation adjusted for the disposal of France in March 2018 and the acquisition of Permavoid and Manthorpe Building Products in August and October 2018, respectively.

 

Revenue in our Residential Systems segment in the four months ended 31 October 2018 increased 11.5% on a like-for-like basis compared to the same period last year, driven by continued strong demand from new housebuild and an element of catch up after the disruption caused by adverse weather at the end of the first quarter of this year. Both private and public RMI markets remain challenging. Revenue for the ten months ended 31 October 2018 is 8.1% higher than the prior year on a like for like basis, and 8.3% on a reported basis, including 5 working days contribution from the recently acquired Manthorpe Building Products business.    

 

Performance in our Commercial and Infrastructure Systems segment has seen a significant improvement since the half year and has delivered revenue growth of 8.6% on a like-for-like basis for the four months ended 31 October 2018. This improvement has been driven partly by some improved market conditions with UK roads programmes beginning to gather pace, but also more significantly from successful new product introductions such as our Fuze HDPE electrofusion tall building soil and waste solution, and the new large diameter sewer and drainage range produced on our continuous corrugator commissioned early this year.  Revenue for the ten months ended 31 October is 0.6% lower than prior year on a like-for-like basis, and flat on a reported basis including a two-month contribution from Permavoid.

 

Second half operating margins will be higher than in the equivalent period in 2017, driven by improved profit performance in the Middle East following closure of the manufacturing facility in late 2017 and operational leverage on higher volumes, offset by the relative growth in lower margin new housebuild. This performance will deliver full year profits in line with management expectations.

 

The integration of recent acquisitions, Permavoid (August 2018) and Manthorpe Building Products (October 2018) into the Polypipe Group is progressing well, albeit in its early stages.

 

Refinancing

 

The Group has renewed its £300m secured Revolving Credit Facility (RCF) effective from 19th November 2018 until November 2023 with two further uncommitted annual renewals through to November 2025 possible. In addition, there is a new uncommitted "accordion" facility of up to £50 million. The new RCF is being provided by the Group's principal relationship banks, namely Lloyds Bank plc, National Westminster Bank plc and Santander UK plc, with HSBC UK Bank plc and Citibank N.A., London Branch as new participants in the syndicate. Refinancing fees of £1.7m will be amortised over the life of the facility. Unamortised fees of £0.6 million from the previous refinancing will be written off through non-underlying items in the financial statements for the year ending 31 December 2018. The margin payable under the renewed facility is 10 basis points lower than the previous agreement for gearing levels up to 2.0x EBITDA. The refinancing arrangements are therefore competitively priced and bring greater operational flexibility to deliver future strategic objectives.

 

Martin Payne, Chief Executive Officer, commented:

 

"I am delighted with the Group's performance so far in the second half, and in particular the marked improvement in our Commercial and Infrastructure Systems segment. The Group continues to deliver strong organic growth ahead of the overall UK construction market and is well placed to achieve the Board's expectations for the full year. I am also pleased that we now have committed credit facilities in place through to 2023, which gives us a solid platform to deliver on our strategic objectives in the coming years."

 

For further information, please contact:

 

Enquiries:                         

Polypipe                                                      +44 (0) 1709 770 000

Martin Payne, Chief Executive Officer

Paul James, Chief Financial Officer

                                   

Brunswick                                                    +44 (0) 2074 045 959

Nina Coad

Dan Roberts

                                                                    

Notes to Editors:

Polypipe is the largest manufacturer in the UK, and among the ten largest manufacturers in Europe, of plastic piping systems for the residential, commercial, civils and infrastructure sectors by revenue.  It is also a leading designer and manufacturer of energy efficient ventilation systems in the UK.

 

The Group operates from 17 facilities in total, and with over 20,000 product lines, manufactures the UK's widest range of plastic piping systems for heating, plumbing, drainage and ventilation. The Group primarily targets the UK, French and Irish building and construction markets with a presence in Italy and the Middle East and sales to specific niches in the rest of the world.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
TSTBLBJTMBABTFP

Trading Update

RNS Number : 9006Z
Polypipe Group PLC
23 May 2019
 

Polypipe Group plc

 

Trading Update

 

 

23 May 2019

 

Polypipe Group plc ("Polypipe" or the "Group"), a leading provider of sustainable water and climate management solutions for the built environment, today issues an update on trading for the four months ended 30 April 2019, ahead of its Annual General Meeting, which takes place at 1030hrs (BST) today at the Holiday Inn, High Road, Doncaster, DN4 9UX. Polypipe will report its interim results for the six months ending 30 June 2019 on 13 August 2019.

 

Trading update

 

An encouraging start to the year gives the Board confidence of delivering its full year 2019 expectations.

 

Group revenue for the four months ended 30 April 2019 at £146.6m (2018: £135.7m) was 8.0% higher than the prior year. On a like-for-like basis excluding the impact of acquisitions, revenue was 3.0% higher.

 

Residential Systems revenue, representing 57% of Group revenue, was 8.4% higher than the prior period, helped by improved weather conditions and the acquisition of Manthorpe. This was partially offset by merchant pre-price increase forward buying into Q4 2018. Manthorpe, acquired in October 2018, is performing in line with expectations and integration is going to plan.

 

Commercial and Infrastructure Systems revenue, representing 43% of Group revenue, was 7.6% higher than the prior year, buoyed by the continued success of new product launches in 2018, improved weather conditions, and the acquisition of Permavoid which is performing in line with expectations, with integration now complete.

 

Martin Payne, Chief Executive Officer 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." 

 

For further information please contact:

 

Polypipe                                                         +44 (0) 1709 770 000

Martin Payne, Chief Executive Officer

Paul James, Chief Financial Officer

 

 

Brunswick                                                       +44 (0) 20 7404 5959

Nina Coad

Dan Roberts

Nick Beswick

 

A copy of this trading update will be available on our website http://ir.polypipe.com today from 0700hrs (BST).

 

 

Notes to Editors:

 

Polypipe Group plc ("Polypipe" or the "Group"), a leading provider of sustainable water and climate management solutions for the built environment is the largest manufacturer in the UK, and among the ten largest manufacturers in Europe, of plastic piping systems for the residential, commercial, civils and infrastructure sectors by revenue.  It is also a leading designer and manufacturer of energy efficient ventilation systems in the UK.

 

The Group operates from 18 facilities in total, and with over 20,000 product lines, manufactures the UK's widest range of plastic piping systems for heating, plumbing, drainage and ventilation.  The Group primarily targets the UK and European building and construction markets with a presence in Italy and the Middle East and sales to specific niches in the rest of the world.

 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
TSTUUSVRKOAVUAR

Trading Update

RNS Number : 8136T
Polypipe Group PLC
19 November 2019
 

Polypipe Group plc

 

Trading Update

____________________________________________________________________________________________________

 

19 November 2019

 

Polypipe Group plc ("Polypipe", the "Company" or the "Group"), a leading provider of sustainable water and climate management solutions for the built environment, today issues an update on trading for the 10 months ended 31 October 2019. 

 

Trading update for 10 months to 31 October 2019

 

·  Resilient performance in tough markets with Group revenue 4.3% higher at £381.7m      (2018: £365.9m)

·     Operating margins 30 bps higher driven by margin accretive acquisitions and strong cost controls

·    Continued good contribution from acquisitions, which are performing well. M&A pipeline remains  encouraging

·   Trading in the last four months reflects strong 2018 comparatives and short term political and economic uncertainty impacting our markets, with Group revenue 1.7% higher than the prior year. Since the end of October, this has been compounded by flooding and poor ground conditions, most notably in the North and the Midlands, meaning contractors and developers have not been able to access sites for civils and groundworks activities

·    Against this backdrop, the Board now expects underlying operating profit for the year to be just below its previous expectations

·   Group remains highly cash-generative and the long-term fundamentals of our markets remain  robust

 

Performance in the Residential Systems segment in the four months ended 31 October 2019 was broadly consistent with the first half of the year with revenue 7.9% higher than the prior year, with a robust performance against strong comparatives in difficult market conditions boosted by a healthy contribution from Manthorpe Building Products, which was acquired in October 2018. This leaves revenue for the ten months ended 31 October 2019 8.2% higher than the prior period. Manthorpe continues to perform ahead of expectations and the integration programme remains on track to be completed by the end of the year as planned.

 

Against strong comparatives, the Commercial and Infrastructure Systems segment saw revenue decline by 5.8% in the four months ended 31 October 2019. Trading became tougher in this period with performance impacted by increased project delays in the UK commercial construction sector as political and economic uncertainty impacted investment decisions, partly offset by a good performance in Roads and contributions from the Permavoid business acquired in August 2018 as well as the recently acquired Alderburgh business, both of which are performing to expectations. Revenue for the ten months ended 31 October 2019 is 0.6% lower than prior year on a reported basis after benefitting from a good first half performance.

 

Martin Payne, Chief Executive Officer, commented:

 

"Despite increasingly challenging market conditions and the impact of the recent severe weather, we still expect to report good growth in profits, albeit just below our previous expectations. Fundamentals in the Group's markets remain strong, with a structural housing shortage, historically low interest rates, real wage growth and near full employment which means that we view our future prospects with confidence".

 

For further information, please contact:

 

Polypipe                                                                                               +44 (0) 1709 770 000

Martin Payne, Chief Executive Officer

Paul James, Chief Financial Officer

                                               

Brunswick                                                                                            +44 (0) 2074 045 959

Nina Coad

Dan Roberts

 

Full year results for year ended 31 December 2019 will be reported on 17 March 2020. 

                                                                    

Notes to Editors:

Polypipe Group plc ("Polypipe", the "Company" or the "Group"), a leading provider of sustainable water and climate management solutions for the built environment, is the largest manufacturer in the UK, and among the ten largest manufacturers in Europe, of plastic piping systems for the residential, commercial, civils and infrastructure sectors by revenue.  It is also a leading designer and manufacturer of energy efficient ventilation systems in the UK.

The Group operates from 20 facilities in total, and with over 20,000 product lines, manufactures the UK's widest range of plastic piping systems for heating, plumbing, drainage and ventilation. The Group primarily targets the UK and European building and construction markets with a presence in Italy, the Netherlands and the Middle East and sales to specific niches in the rest of the world.

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
TSTUWOWRKSAAAAA

Trading Update

RNS Number : 7606Y
Polypipe Group PLC
25 May 2016
 

Polypipe Group plc

 

Trading Update

___________________________________________________________________________________

 

25th May 2016

 

Polypipe Group plc ("Polypipe" or the "Group"), issues this update on trading for the four months ended 30th April 2016 ahead of its Annual General Meeting which takes place at 10:30 am today at the Holiday Inn, High Road, Doncaster, DN4 9UX. 

 

Polypipe will report its interim results for the six months ending 30th June 2016 on 16th August 2016.

 

Trading Results

 

The revenue performance for each reporting segment was as follows:

 


Four months

Four months


Revenue

ended April 2016

ended April 2015

Change






£m


£m


%

 

Residential Piping Systems

70.6


59.4


18.9

Commercial and Infrastructure Piping Systems - UK

60.9


39.6


53.8

Inter Segment

(3.4)


(3.1)



UK Operations

128.1


95.9


33.6

 

Commercial and Infrastructure - Mainland Europe

 

21.2


 

17.0


 

24.7

 

Inter Segment

 

(0.4)


 

(0.5)


 

 

 

Group

 

148.9


 

112.4


 

32.5

 

Group revenue for the four months ended April 2016 was 32.5% ahead of the comparative period in 2015.  This revenue growth comprised:

 

Organic growth

9.7%

(UK operations 8.0%)

Acquisitions

21.4%


Currency

1.4%


Total revenue growth

32.5%


 

UK Operations

 

A favourable market backdrop combined with an element of re-stocking and additional stocking ahead of our price increases by merchant customers has delivered strong organic revenue growth of 8.0% for the four months ended April 2016. Our ventilation business, which now includes Nuaire, has also continued to perform strongly.  Residential new build volumes (c. 24% of Group revenue in 2015) have remained robust and we are encouraged by signs of improvement in the private RMI sector (c. 27% of Group revenue in 2015).  The UK's infrastructure projects pipeline is developing as forecast, which combined with infrastructure for new residential development, has helped drive strong sales growth for our water management products.  Export sales to the Gulf region have also performed well in the period and we are making good progress with setting up a manufacturing unit to produce some of our most space hungry water management products in Dubai.

 

Operating margins for our UK operations for the four months ended April 2016 were ahead of the comparative period in 2015 due to the operational gearing benefits arising from the organic revenue growth.

 

Mainland European Operations

 

Reported revenue for the four months ended April 2016 was 24.7% ahead of the comparative period in 2015.  Revenue growth on a constant currency basis was 18.2%. The market in France appears to have stabilised and is showing early indications a slight upward trend and we have gained some market share and also benefitted from some merchant restocking.  The business continues to be profitable but at low margins.

 

David Hall, Chief Executive, commented:

 

"Our growth initiatives combined with the continued positive fundamentals in our main UK market have delivered an excellent start to the year. Whilst we remain alert to the potential impact of continuing short term economic and political uncertainty in our core UK market, with this strong start we believe that the Group is well positioned to deliver results for the full year in line with expectations".

 

 

Contacts:

 

Polypipe

David Hall, Chief Executive Officer

Peter Shepherd, Retiring Chief Financial Officer (for queries to 3rd June 2016)

Martin Payne, Incoming Chief Financial Officer

+44 (0) 1709 770 000

 

Brunswick

Mike Smith

Nina Coad

+44 (0) 20 7404 5959

 

A copy of this trading statement will be available on our website

http://ir.polypipe.com/(http://ir.polypipe.com) today from 7.00 am.

 

Notes to Editors:

 

Polypipe is the largest manufacturer in the United Kingdom, and among the ten largest manufacturers in Europe, of plastic piping systems for the residential, commercial, civils and infrastructure sectors by revenue. The recently acquired Nuaire business is a leading designer and manufacturer of energy efficient ventilation systems in the UK.

 

The Group operates from nineteen facilities in total, and with over 20,000 product lines, manufactures the United Kingdom's widest range of plastic piping systems for heating, plumbing, drainage and ventilation. The Group primarily targets the UK, French and Irish building and construction markets with a presence in Italy and the Middle East and sales to specific niches in the rest of the world.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
TSTALMBTMBIBBBF

COVID-19 Update

RNS Number : 1802S
Polypipe Group PLC
07 July 2020
 

 

7 July 2020

 

Polypipe Group plc COVID-19 update

 

Polypipe Group plc ("Polypipe", the "Company" or the "Group"), a leading provider of sustainable water and climate management solutions for the built environment, today provides an update following its announcement on 7 May 2020, and ahead of its interim results now due to be announced on 15 September 2020 on the impact of the COVID-19 pandemic and the Group's response to date.

 

Current operations 

 

We continue to prioritise the health, safety and wellbeing of our employees, adhering to government guidelines on social distancing and hygiene in all aspects of our operations. 

The Group has seen an improving trend since our update on 7 May, with June 2020 revenue some 30% below 2019 levels compared to 66% below in April 2020. Our Commercial and Infrastructure Systems segment has remained relatively resilient throughout this period, with many contractors managing to return to operations (albeit at reduced productivity levels) and the Group servicing specific, crisis-related emergency project work for NHS hospitals and care/recovery applications, particularly in our Nuaire ventilation business. Recovery in the Residential Systems segment has been somewhat more subdued, reflecting the shutdown of the new house build market for much of April and May, followed by a more measured return to work. Overall, Group revenue for the six months to June 2020 was approximately 24% lower than the six months to June 2019.

We are encouraged by the Group's performance in May and June compared to April and also by reports of better than expected activity in the housing market after its reopening on 13 May 2020, as well as Government-announced increased levels of investment in infrastructure projects. However, at this stage we remain cautious as to whether this performance will be sustained into the autumn and winter.

We are currently manufacturing at all main sites at varying levels of capacity utilisation, and currently have 25% of our workforce furloughed, compared to 61% at the height of the crisis.

Restructuring

Medium-term economic and industry forecasts show a significant impact from the COVID-19 outbreak on both the wider UK economy and specifically the UK construction industry. Latest forecasts from the Construction Products Association show that residential new build demand in 2021 is likely to be 20% lower than 2019 levels, Housing RMI 15% lower than 2019 levels, and commercial demand 18% lower than 2019 levels, even with recovery in the second half of 2021.

 

In light of this medium-term outlook, we are taking regrettable but necessary steps to adjust our manning levels and cost base to reflect this level of demand. Unfortunately, it means that we are entering a consultation period with our employees to review these steps, which if actioned in full, will lead to the loss of approximately 250 jobs or 8% of the workforce. It is important to note that there is no planned permanent closure of any facility, which leaves the Group well placed to react to any sustained but unexpected increase in customer demand.

 

Balance sheet and liquidity

 

The Group reported net debt of £184 million on 31 March 2020 and subsequently completed an equity raise of £120 million in May 2020. The Group's liquidity includes a £350 million revolving credit facility, enabling the Group to continue to invest in its key strategic growth projects.

 

Summary        

 

In response to the challenges created by the COVID-19 crisis, the Group has taken significant actions to protect the Group's resilience.  Whilst there is inevitable uncertainty in the near term, the Board remains confident it is taking the necessary actions to continue to deliver long-term sustainable returns in markets that remain fundamentally attractive. With this current level of uncertainty, we are not yet reinstating financial guidance, and this remains under review by the Board for the time being.  

 

 

Enquiries:

 

Polypipe                                                                                    +44 (0) 1709 772204

Martin Payne, Chief Executive Officer

Paul James, Chief Financial Officer

 

Brunswick                                                                                  +44 (0) 20 7404 5959

Nina Coad / Dan Roberts

 

Notes to Editors:

Polypipe Group plc ("Polypipe", the "Company" or the "Group"), a leading provider of sustainable water and climate management solutions for the built environment is the largest manufacturer in the UK, and among the ten largest manufacturers in Europe, of plastic piping systems for the residential, commercial, civils and infrastructure sectors by revenue.  It is also a leading designer and manufacturer of energy efficient ventilation systems in the UK.

The Group operates from 19 facilities in total, and with over 20,000 product lines, manufactures the UK's widest range of plastic piping systems for heating, plumbing, drainage and ventilation. The Group primarily targets the UK and European building and construction markets with a presence in Italy, the Netherlands, Ireland and the Middle East and sales to specific niches in the rest of the world.

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
TSTKKABPABKDKOK

Trading Update

RNS Number : 4938F
Polypipe Group PLC
17 November 2020
 

 

Polypipe Group plc

Trading Update

__________________________________________________________________________________________

 

17 November 2020

 

Polypipe Group plc ("Polypipe", the "Company" or the "Group"), a leading provider of sustainable water and climate management solutions for the built environment, today issues an update on trading for the four months ended 31 October 2020.

 

Trading update for four months ended 31 October 2020 ahead of expectations

·      Sustained recovery with Group revenue for the four months ended 31 October 2020 ahead of the Board's expectations and only 1.5% lower than the prior year at £156.1m (2019: £158.4m) with continued improvement throughout the period

·      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

·      Uncertainty remains around the possible effects of the second lockdown, however the Board expects underlying operating profit for the year to be at least £35m, compared to the current consensus range of £30-35m

·      The Group remains highly cashflow generative and at 31 October 2020 net debt was £32.4m. This is better than the Board's expectations and reflects recent trading performance

·      The Group has resumed capital expenditure investment to pursue growth opportunities and product development and repeats its guidance of spending circa £20-25m for this year

·      The medium-term fundamentals of our markets remain robust

 

The Residential Systems segment's revenue for the four months ended 31 October 2020 was 3.9% lower than the prior year; compared to a 28.1% year-on-year decline in the first half. This has been driven by the UK housing market recovering faster and stronger than expected as well as a resilient RMI market. Revenue for the ten months ended 31 October 2020 was 18.0% lower than the prior period.

 

The Commercial & Infrastructure segment's revenue for the four months ended 31 October 2020 was 1.9% higher than the prior year, with the contract markets continuing to recover well. Revenue for the ten months ended 31 October 2020 was 7.6% lower than prior year. For the Group as a whole, revenue for the ten months ended 31 October 2020 was 13.6% lower than prior year.

ESG

The current and future focus of the business is on serving the needs created by four key sustainability drivers: the needs for resilient drainage, green urbanisation, clean healthy indoor air and ventilation, and a low, or zero carbon, built environment. We plan to hold ourselves accountable by setting out a clear strategy and measuring performance across a range of ambitious targets and will provide further information around this at our capital markets event later today.

Martin Payne, Chief Executive Officer, commented:

"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.

 

The government in its national lockdown announcements has been clear that construction, manufacturing, and the housing market should all continue to operate normally subject to operating in a COVID-19 safe environment. Whilst still early days into lockdown, there are no signs of any significant changes to demand patterns. 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".

 

Capital markets event

A capital markets event will be held online at 10.00am GMT today, providing an update on our Group strategy, operational progress ESG targets and how Polypipe is positioned for the future.  The event will be hosted by Martin Payne, CEO and Paul James, CFO and feature presentations from senior members of the executive team.

To access the presentation, participants will be required to register in advance using the following webcast

link:  https://webcast.merchantcantoscdn.com/webcaster/dyn/4000/7464/16532/124624/Lobby/default.htm

Participants are requested to register 15 minutes before the start of the presentations at 09.45 GMT.

Questions can be asked at the end of the presentation using the below conference phone line.

Standard International Access                +44 (0) 20 3003 2666

UK Toll Free                                                0808 109 0700

Questions can also be typed in and submitted via the webcast link.

A recording of the presentation will be available following the event on Polypipe's website.

Full Year Results

Full year results for year ending 31 December 2020 will be announced on 16 March 2021.

Enquiries:

Polypipe +44 (0) 1709 770 000

Martin Payne, Chief Executive Officer

Paul James, Chief Financial Officer

Brunswick +44 (0) 2074 045 959

Nina Coad

Sophia Lazarus

 

This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) No 596/2014.

Notes to Editors:

Polypipe Group plc ("Polypipe", the "Company" or the "Group"), a leading provider of sustainable water and climate management solutions for the built environment, is the largest manufacturer in the UK, and among the ten largest manufacturers in Europe, of plastic piping systems for the residential, commercial, civils and infrastructure sectors by revenue. It is also a leading designer and manufacturer of energy efficient ventilation systems in the UK.

 

The Group operates from 19 facilities in total, and with over 20,000 product lines, manufactures the UK's widest range of plastic piping systems for heating, plumbing, drainage and ventilation. The Group primarily targets the UK and European building and construction markets with a presence in Italy, the Netherlands and the Middle East and sales to specific niches in the rest of the world.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
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Trading Update

RNS Number : 4657I
Polypipe Group PLC
14 December 2020
 

14 December 2020

 

Polypipe Group plc

TRADING UPDATE

Polypipe Group plc ("Polypipe", the "Company" or the "Group"), a leading provider of sustainable water and climate management solutions for the built environment, today issues an update on recent trading.

Trading

Our trading update announced on 17 November 2020 noted continued recovery ahead of expectations in our markets through the third quarter to 31 October 2020. Since then, performance in November and the likely outcome for December has again exceeded expectations. Group revenue for November was 8.0% higher than the prior year, with Residential markets performing particularly well. Operating margins continue to benefit from the drop through on this improved volume, although they are still not back to normal levels due to operating inefficiencies caused by COVID-19.

Consequently, the Board now expects underlying operating profit for the year to 31 December 2020 to be circa £40m, compared to the current consensus range of £35m-37m.

The Group enters the new year with a strong order book and some cautious optimism, although uncertainty currently exists about the effects of a no-deal Brexit.

Enquiries:

Polypipe +44 (0) 1709 770 000

Martin Payne, Chief Executive Officer

Paul James, Chief Financial Officer

 

Brunswick +44 (0) 2074 045 959

Nina Coad

Sophia Lazarus

 

This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) No 596/2014.

 

Notes to Editors:

Polypipe Group plc ("Polypipe", the "Company" or the "Group"), a leading provider of sustainable water and climate management solutions for the built environment, is the largest manufacturer in the UK, and among the ten largest manufacturers in Europe, of plastic piping systems for the residential, commercial, civils and infrastructure sectors by revenue. It is also a leading designer and manufacturer of energy efficient ventilation systems in the UK.

 

The Group operates from 19 facilities in total, and with over 20,000 product lines, manufactures the UK's widest range of plastic piping systems for heating, plumbing, drainage and ventilation. The Group primarily targets the UK and European building and construction markets with a presence in Italy, the Netherlands and the Middle East and sales to specific niches in the rest of the world

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
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