Polypipe revenues top expectations as volumes recover

Polypipe said it had witnessed a sustained recovery, with group revenues for the period being both ahead of the board's expectations and just 1.5% lower year-on-year at £156.1m.

The FTSE 250-listed firm also said operating margins had improved compared to the first six months as volumes recovered during the period despite ongoing costs related to the Covid-19 pandemic.

While Polypipe acknowledged that uncertainty remained around the potential effects of the UK's second lockdown, the group stated it expects underlying operating profit for the year to be at least £35.0m - at the top end of current consensus of £30-35m.

Net debt was better than expected at £24.0m as the group managed to remain "highly" cash flow generative.

Chief executive Martin Payne said: "The group's end markets in the UK have continued to recover ahead of expectations, and I am pleased that the group's resilient performance in the last four months has reflected this.

"Looking into 2021, we have strong medium-term fundamentals in our markets, and sustainability at the heart of our business, although we remain alert to the broader macro related risks in the market. The board remains confident that the group is well-positioned for the future".

As of 0855 GMT, Polypipe shares were up 0.77% at 521.0p.