Shares of Doncaster-based plastic piping and ventilation systems firm Polypipe Group rose about 3% on Tuesday after it announced the acquisition of Devon-based Nu-Heat Holdings Ltd for £27 million and said Polypipe’s underlying operating profit for 2020 will be ahead of previous guidance.

Polypipe said Nu-Heat is a supplier of sustainable underfloor heating solutions, air and ground source heat pumps and other renewable heating systems.

“The acquisition is in line with our strategy of broadening our market reach in climate management solutions,” said Polypipe.

“The Nu-Heat business is consistent with our focus on low or zero carbon heating as a growth driver and allows us to leverage our existing capabilities to support growth.

“The Nu-Heat business is a profitable, cash-generative business that has product differentiation, IP and expertise to support value-added services.

“It is well positioned in the residential sector, driving its mix of growth increasingly towards renewables.

“It is complementary to Polypipe’s existing market leading positions and capabilities.

“There are opportunities for its technologies to be combined with Nuaire technologies.

“The management team will remain with the combined business.”

On trading, Polypipe said: “Further to the update announced on 14 December 2020, the group confirms that trading continued to recover throughout the end of the month, with underlying operating profit for the year ended 31 December 2020 slightly ahead of the previous guidance of c.£40 million and with this momentum continuing into the new year without any material impact from the third national lockdown.

“We have also had continued good delivery of cashflow, with net debt at c.£30 million at the end of the year.”