Polypipe profit, revenue rise despite 'challenging' markets

In the year to the end of December 2019, pre-tax profit and revenue ticked up 3.3% to £60.1m and £447.6m, respectively. Basic earnings per share rose 0.8% to 24.9p and the dividend was lifted 3.4% to 12.1p a share.

Chief executive officer Martin Payne said the year was characterised by political and economic uncertainty. "While 2019 saw continued historically low interest rates, low inflation and near full employment leading to real wage growth, the political situation that unfolded during the year significantly impacted the construction market," he said.

He pointed out that housebuilders started 8% fewer plots compared to the prior year and investors delayed commercial projects. While the general election result brought some certainty, it was too late in the year to see any meaningful effect in the markets in which Polypipe operates, he said.

"Our strategy continued to deliver over the year, with revenue and profit growth despite ongoing market uncertainty and challenging trading conditions, particularly in the second half of the year," said Payne.

"Our balance of end markets, with their long-term growth drivers, together with good operational performance and contributions from our recent acquisitions positions us well."

The company said it has not yet seen any impact form the coronavirus and that the pandemic was "under close review" by management.

Polypipe provides sustainable water and climate management solutions for the built environment.