Beast from the East dents Polypipe

Polypipe'‹, one of Europe's biggest manufacturers of plastic pipe systems,'‹'‹ said the Beast from the East snowfall resulted in an £8m reduction in revenue.
By The Newsroom
Published 23rd May 2018, 14:53 BST
Updated 23rd May 2018, 14:56 BST
Polypipe's chief executive Martin PaynePolypipe's chief executive Martin Payne
Polypipe's chief executive Martin Payne

Despite this, the Doncaster-based firm said it is confident of delivering full year expectations.

Revenue fell 1 per cent in the first four months of 2018 to £135.7m as the bad weather in late February and early March prevented its customers from working on site.

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Polypipe told shareholders at its AGM in Doncaster that r​evenue for the four months ​to April ​30 was 0.9​ per cent​ lower at £135.7m​, down from £136.9m in the first four months of the previous year.

T​he firm said underlying revenue growth, e​x​cluding the impact of the adverse weather, was approximately 5​ per cent​. Trading in the latter part of April, after the effects of ​the ​adverse weather had passed, was consistent with this adjusted growth rate.

The group said its Residential Systems ​division​ deliver​ed​ strong organic revenue growth​,​ driven by a buoyant new house build market.

Revenue performance in ​its​ Commercial and Infrastructure Systems ​division experienced a continuation of the trends highlighted ​at the full year results​ ​in March,​ with project delays in road and other commercial projects ​hitting short-term performance.

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Polypipe said the l​atest forecasts from the Construction Products Association show a broadly flat construction market for 2018.

The ​firm said that with continued focus on the core elements of its strategy​,​ ​it remains well placed to ​increase​ revenue ahead of the market.

A​nalyst ​Graeme Kyle ​at Shore Capital said: "Group revenues declined by 0.9​ per cent​ year on year to £135.7m which is significantly lower than we and the market had expected.

​"​However​,​ management cite that excluding the adverse weather conditions in Feb​ruary and ​Mar​ch,​ revenues would have grown by 5​ per cent, ​which is actually higher than our full year revenue growth ​forecast ​of 4.3​ per cent​. The ​b​oard’s 2018 expectations remain unchanged​, ​despite short term project delays in various infrastructure as previously flagged and principally as a result of the Carillion fallout.

​"​We retain our 2018 forecasts and ​'b​uy​'​ recommendation​."​

Polypipe will report its interim results for the six months ​to June ​30​ on August ​14.​

Related topics:EuropeDoncasterAGM