Polypipe 'on track' to achieve management expectations for full-year

Revenue over the period totalled £400.6m, 8.2% higher than the prior year.

Polypipe's operations in Britain posted a revenue growth of 6.4% for the first ten months of 2017 thanks to price increases implemented throughout the first half of the year.

The group's UK Residential Systems business jumped 9.9%, driven by a continued demand for new housing and a strengthening of above ground product sales.

However, Polypipe noted that its results had been hindered by difficulties in its private and public RMI markets and the continued closure of its manufacturing facility in Dubai.

Revenue in its mainland European business units increased 19.9%, or 11.2% on a like-for-like basis, thanks to a "helpful" economic environment in France.

Polypipe also stated that second half operating margins would likely be higher than in the equivalent period twelve months earlier in order to recover post-EU referendum polymer inflationary cost increases.

Martin Payne, chief executive officer, said, "Whilst the UK new housebuild market continues to perform well helped by increasing demand for our water management and attenuation products, commercial, infrastructure and RMI markets remain challenging."

"Against this backdrop, the group continues to deliver strong organic growth ahead of the overall UK construction market, demonstrating the resilience of its balanced exposure to the different sectors within that market, and the continued success of its strategic growth pillars of legacy material substitution and legislative tailwinds in water management and carbon efficiency.

"Whilst we remain vigilant in the face of continued political and economic uncertainty, we believe the group is well placed to achieve management expectations for the full year," he concluded.

As of 1030 GMT, shares had gained 4.85% to 395.48p.