Polypipe Group PLC Trading Update (0216G)
May 24 2017 - 1:00AM
UK Regulatory
TIDMPLP
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 GBP157.8m (2016: GBP148.9m), 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
---------------------------------------------------
LFL
2017 2016 Change Change*
Revenue GBPm GBPm % %
--------------------------------- -------------- ------------- --------- ---------
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
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