Polypipe delivers strong half-year results and remains positive in face of uncertainty
UK manufacturer of plastic piping and ventilation systems, Polypipe, says there is no sign of orders weakening as a result of the recent referendum vote, as it posted positive half-year results.
The company, which operates in the commercial, civils and infrastructure sectors, posted a 31 percent increase in revenue to £223.3million for the six months ended 30 June, as well as an increase of 29 percent in pre-tax profits to £29.9million.
Polypipe says after an “excellent start” to 2016, demand from all segments in which it operates has remained strong. It’s recent acquisition of Nuaire, a ventilation systems manufacturer, is “performing well” and has seen some early success in conjunction with Polypipe’s own products.
The company’s results have been unaffected by Brexit, it says, with order intake showing no sign of weakening following the outcome of June 23. Despite the economic uncertainty surrounding the future, Polypipe says the business is well balanced to cope.
“We have delivered another record performance in the first half continuing the strong momentum from last year,” commented David Hall, Polypipe’s Chief Executive. “Our strategic focus on the structural growth opportunities, together with the acquisition of our Nuaire ventilation business has accelerated our growth.
“Despite the uncertain economic backdrop, the long-term structural drivers of our business remain strong, our balanced business model means that we are not overly exposed to any particular sector and the nature of the Group’s production processes enables us to adapt and flex quickly to changes in demand.
“The Board is confident that the cash generative characteristics of the business and a commitment to remain agile will enable the Group to continue to develop and outperform, whatever the market conditions.”
Polypipe says encouraging comments from UK Government recognising the need to provide stimulus for construction gives it confidence in its outlook and the business plans to continue with development initiatives.