Polypipe 10-month revenue up to £366m

Doncaster-based plastic piping and ventilation systems manufacturer Polypipe Group plc on Tuesday issued a trading update for the 10 months ended October 31, saying revenue was 4.5% higher than the prior year at £365.9 million.

“Trading is in line with the board’s expectations and our outlook for the full year is unchanged,” said Polypipe.

Polypipe primarily targets the UK, French and Irish building and construction markets, with a presence in Italy and the Middle East and sales to specific niche markets in the rest of the world.

“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,” added Polypipe.

“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.”

Polypipe also said it renewed its £300 million secured Revolving Credit Facility (RCF) effective from November 19, 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,” said Polypipe.

Polypipe CEO Martin Payne said: “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.”

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