Polypipe agrees to sell French business, trading remains in line

Polypipe Group is close to selling its French arm to local manufacturing group Ryb for €16.5m cash.

Completion of the transaction remains subject to an employee consultation process and is expected in the first half of 2018.

For the past calendar year, Polypipe France generated revenue of approximately €67.6m and underlying operating profit of approximately €1.5m.

Chief executive Martin Payne said: "Polypipe France has historically operated in a competitive area of the French construction market and will be better able to grow under new ownership. In line with its strategy, Polypipe will continue to focus its resources fully on delivering profitable growth, both organically and by acquisition, through legacy material substitution, legislative tailwinds in water management and carbon reduction, and geographic reach."

Proceeds from the disposal, receivable in cash at completion, will be used to reinvest in the growth, Polypipe said.

The FTSE 250-listed company added that trading since November has remained such that the full year performance was in line with management expectations. Preliminary results will be announced on 20 March.