Polypipe revenue up 4.5%; sees FY in line

Pipe maker Polypipe Group on Tuesday reported a 4.5% rise in revenue to £365.9m in the 10 months to end of October driven by organic growth in its residential systems unit.

Revenue increased 10.2% in the fourth months to end-October on a like-for-like basis as the company said trading was in line with expectations and the full year outlook remained unchanged.

Revenue in the residential systems segment in the four month period increased 11.5% on a like-for-like basis year on year, driven by continued strong demand from new house building and an element of catch up after the disruption caused by adverse weather at the end of the first quarter of the year, Polypipe said.

However, the company warned that the repair, maintenance and improvement markets in the private and public sectors remained challenging.

Second-half operating margins would be higher than in the equivalent period in 2017, driven by improved profit performance in the Middle East following the closure of a manufacturing facility and operational leverage on higher volumes, Polypipe said.