Polypipe makes progress

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Doncaster-based Polypipe, one of Europe’s biggest manufacturers of plastic pipe systems, today said it was “delighted” with its progress, despite posting a half year loss.

The group. which floated earlier this year, recorded revenue for the six months ended June 30 2014 of £168.2m, an improvement of 10.8 per cent on the previous year.

In a statement the company said: “The year started strongly, albeit against relatively weak comparables, and this positive momentum continued throughout the period. This growth has been driven by our strategic focus on structural growth opportunities and the growing recovery in the UK construction market. Operating profit before operating exceptional items for the first half of 2014 of £22.7m was up 29 per cent on the same period last year with the drop through from the revenue growth at 31 per cent. Finance charges before exceptional finance costs for the six months to June 30 2014 of £6.5m were £1.3m lower than the corresponding period in the prior year as a result of the refinancing of the £150m senior secured notes in the first half.

Exceptional charges of £12.4m were incurred in the period in relation to the IPO listing costs.

A further £8.6m of exceptional finance costs were incurred in the period in relation to refinancing the Senior Secured Notes. As a result the company reported a loss before tax of £4.6m, compared with £9.7m profit in the first half of the previous year.

David Hall, the chief executive said: “I am delighted with the progress that we have made following the group’s successful IPO earlier this year and these results show that we are delivering on the strategy we set out at the time.

“The group’s healthy growth in sales and underlying profits demonstrates the confidence returning to our sector and a deserved reward for operational improvements and investment we made when market conditions were much tougher. We are well placed to capitalise on the future growth opportunities and I remain confident that we will deliver results for the full year in line with our expectations at the time of the IPO.”