Polypipe profit plummets 93% but recovery under way

Shares of Doncaster-based plastic piping and ventilation systems firm Polypipe Group rose about 5% on Tuesday after it published results for the six months ended June 30, 2020, showing that revenue and profit plummeted — but that “trading since the end of the first half has continued to recover …”

Revenue for the six months was 22.3% lower than the prior year at £173.6 million and profit before tax was 92.7% lower at £2.3 million.

Polypipe said that “given the current economic uncertainty” it is not recommending an interim dividend.

However it said it will consider paying a final dividend for 2020 in May 2021 “subject to continued performance ahead of the operating scenario set out at the time of the group’s equity raise in May 2020.”

Polypipe CEO Martin Payne said: “The group has traded robustly through the crisis with continued improvement in trading in recent months.

“The early actions we took to secure liquidity have positioned the group to be able to capitalise on opportunities as they arise during the recovery, as well as continue investing in new product development in line with our strategy.  

“We have a balanced exposure to the different elements of the UK construction market which provides resilience, and strong medium-term growth drivers.

“Whilst we remain mindful of the various risks to the UK’s economic recovery, I am confident the group is well positioned for the future.”