Doncaster-based plastic piping and ventilation systems firm Polypipe Group said on Tuesday it has enjoyed a “sustained recovery” with revenue for the four months ended October 31, 2020, ahead of its expectations.
Polypipe said revenue was only 1.5% lower than the prior year at £156.1 million “with continued improvement throughout the period.”
In a trading update the company added: “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 …”
Polypipe CEO Martin Payne said: “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.”