Polypipe Group plc ("Polypipe" or the "Group"), a leading manufacturer of plastic piping systems for the residential, commercial, civils and infrastructure sectors, today announces its half year unaudited results for the six months ended 30 June 2014.

Financial Results

 H1H1Change
 20142013 
Revenue£168.2m£151.8m11%
Operating profit1£22.7m£17.6m29%
Profit before tax (pre exceptionals)2£16.4m£9.9m66%
(Loss)/profit before tax£(4.6)m£9.7m 
Adjusted earnings per share37.05p4.05p74%
Cashflow from operations1£17.8m£12.5m42%
Net debt£99.9m£108.8m(8%)
Basic earnings per share(1.75)p3.95p 
Dividend per share1.5p- 

1.   Excludes operating exceptional items
2.   Excludes operating exceptional items and exceptional finance costs
3.   Excludes operating exceptional items, exceptional finance costs and related tax relief

Financial Highlights

  • Delivering the strategy set out during successful IPO in April    
  • UK construction market recovery combined with strategic focus on structural growth opportunities led to revenue growth in the UK of 12.9% (Group 11%) over H1 2013
  • Improved UK volumes resulted in Group operating profit increasing by 29% to £22.7m1    
  • Refinancing of Senior Secured Notes successfully completed; significantly reducing future financing costs
  • Maiden interim dividend of 1.5 pence per share

Operational Highlights

  • Strong demand for residential piping systems from UK housebuilders, increasingly from smaller developers and projects outside of London and the South-East
  • Good demand from road and rail projects and the development of high rise, multi-occupancy buildings in London
  • Sharp increase in sales of Water Management Solutions, driven by the growing need for flood alleviation schemes
  • Strong sales growth in the Middle East and to mining infrastructure projects in Africa

David Hall, Chief Executive said:

"I am delighted with the progress that we have made following the Group's successful IPO earlier this year and these results show that we are delivering on the strategy we set out at the time. The Group's healthy growth in sales and underlying profits demonstrates the confidence returning to our sector and a deserved reward for operational improvements and investment we made when market conditions were much tougher. We are well placed to capitalise on the future growth opportunities and I remain confident that we will deliver results for the full year in line with our expectations at the time of the IPO."

For further information please contact:

Polypipe

David Hall, Chief Executive Officer
Peter Shepherd, Chief Financial Officer
+44 (0) 1709 770 000

Brunswick

Mike Smith
Simon Maine
+44 (0) 20 7404 5959

A copy of this report will be available on our website http://ir.polypipe.com today from 7.00am.

An analyst presentation will be held today, Monday 18 August at 08:30 (GMT). To dial in the call details are:

Tel: +44 (0) 1452 555566

Code: 85608509

Notes to Editors:

Polypipe is the largest manufacturer in the United Kingdom, and among the ten largest manufacturers in Europe, of plastic piping systems for the residential, commercial, civils and infrastructure sectors by revenue. The Group operates from sixteen facilities in total, and with over 20,000 product lines, manufactures the United Kingdom's widest range of plastic piping systems within its target markets. The Group primarily targets the UK, French and Irish building and construction markets with a presence in Italy and the Middle East and sales to specific niches in the rest of the world.

Interim Results Announcement 2014

Date: 18 August 2014