Results round-up: International Public Partnerships, Polypipe Group

International Public Partnerships posted its full-year results for the 12 months to 31 December on Thursday, reporting net asset value growth of 24.3% to £1.6bn.

The FTSE 250 company said its net asset value per share grew 9.2% to 142.2 pence.

IFRS profit before tax increased 119.4% to £175.3m, and the board confirmed a 2.5% improvement in the full-year dividend to 6.65 pence per share.

Its weighted net asset value portfolio return projected annual increase was 0.78% per annum, in response to a 1% per annum inflation.

The board set a minimum target for 2017 and 2018 full-year dividends of 6.82 and 7.00 pence per share, respectively, with 1.2x cash dividend cover.

On the operational front, International PPL committed to invest more than £489m in 18 projects in 2016, with the board claiming all new investments were in core infrastructure assets and were projected to enhance overall returns for shareholders.

It said there was a clear pipeline of new opportunities offering accretive returns for 2017 and beyond, with recent investments continuing the “high level of inflation linkage” in the company's investment returns.

International PPL had sustained dividend increases of around 2.5% for more than a decade, with dividend growth to 6.65 pence per share in 2016.

The company reportedly remained on track for continued dividend growth in 2017 and 2018.

It described “continued and proven” value creation, with total shareholder return now at 148.5% - an average of 9.4% per annum since IPO in 2006.

International PPL successfully completed two capital raisings in 2016, securing a total of £200m in fresh equity to support its future pipeline in regulated and other public infrastructure projects.

Polypipe Group

Plastic piping and ventilation systems manufacturer Polypipe Group announced its audited results for the year to 31 December on Thursday, with revenue rising 23.8% to £436.9m.

The FTSE 250 company said its underlying operating profit was 28% higher year-on-year at £69.4m, as its underlying operating margin improved 50 basis points to 15.9%.

Underlying profit before tax was £61.8m, up 28.8%, and the firm’s operating profit was 25.5% higher at £62m.

It reported a profit before tax of £54.4m, rising 31.1% from 2015’s results.

Diluted earnings per share were 29.2% higher at 22.1p, while underlying diluted earnings per share rose 28.9% to 25p.

The company generated £86.5m cash from operations during the year, a 19.1% improvement over 2015, and the board confirmed dividends per share of 10.1p, up 29.5% year-on-year.

On the operational front, Polypipe’s board put the revenue growth down to “continued strong demand” for the company’s products, with no discernible impact of the EU referendum on its end markets thus far.

Its legacy material substitution and legislative tailwinds were driving growth ahead of the overall UK construction market, and the Nuaire business was successfully integrated into the group, now performing in line with expectations.

Polypipe’s Middle East manufacturing plant was commissioned and was in full operation in the second half of the year.

The company also posted “significant” growth in export revenue, up by 28.7%.

Looking ahead, the board said its underlying fundamentals and growth prospects in the overall UK construction market remained positive, with the level of economic uncertainty easing since the immediate reaction to the outcome of the EU referendum.