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.”

About the Author

Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.