Polypipe shares up 11% as it ‘exceeds expectations’

Shares of Doncaster-based plastic piping and ventilation systems firm Polypipe Group rose about 11% on Monday after it published a trading update that said its recent performance “has again exceeded expectations.”

“Our trading update announced on 17 November 2020 noted continued recovery ahead of expectations in our markets through the third quarter to 31 October 2020,” said Polypipe.

“Since then, performance in November and the likely outcome for December has again exceeded expectations.

“Group revenue for November was 8.0% higher than the prior year, with residential markets performing particularly well.

“Operating margins continue to benefit from the drop through on this improved volume, although they are still not back to normal levels due to operating inefficiencies caused by COVID-19.

“Consequently, the board now expects underlying operating profit for the year to 31 December 2020 to be circa £40m, compared to the current consensus range of £35m-37m.

“The group enters the new year with a strong order book and some cautious optimism, although uncertainty currently exists about the effects of a no-deal Brexit.”