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 2015.

Financial Results

 H1H1Change
 20152014 
Revenue£170.4m£168.2m1.3%
Operating profit1£25.6m£22.7m12.8%
Profit before tax (pre exceptionals)2£23.2m£16.4m41.5%
Profit/(loss) before tax£23.2m£(4.6)m 
Adjusted earnings per share39.11p7.05p29.2%
Net debt£83.8m£99.9m(16.1%)
Basic earnings per share9.13p(1.75)p 
Dividend per share2.3p1.5p53.3%

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

  • Underlying UK revenue growth of 5.1%, after adjusting for working days.
  • 150 bps improvement in Group operating profit margin to 15%.
  • 29.2% improvement in adjusted EPS due to strong operating performance and lower finance charges since refinancing.
  • Interim dividend of 2.3p in line with policy to pay a minimum of 40% of the Group’s profit after tax.

Operational Highlights

  • Strategic acquisition of Nuaire in August 2015 to enhance capability to support Carbon Efficient solutions
  • Good demand for residential piping systems from UK housebuilders, increasingly from projects outside of London and the South-East
  • Improvement in the residential RMI sector
  • Good demand from road and rail projects
  • Strong increase in sales of Water Management Solutions, driven by planning legislation requiring new sites to contain stormwater to avoid flooding
  • Good sales growth in the Middle East

David Hall, Chief Executive said:

"The year started strongly supported by a strengthening market in the UK and we are well placed to capture our share of the anticipated market growth. Our strategic initiatives all continue to show good progress over and above the market and the recent acquisition of Nuaire will support our aims to accelerate our growth. I remain confident that we will deliver results for the full year in line with our expectations".

For further information please contact:

Polypipe

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

Brunswick

Mike Smith
Nina Coad
+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, Thursday 20th August at 08:15 (GMT). To dial in the call details are:

Tel:  +44 (0) 1452 555566
Code: 13748252

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 2015

Date: 20 August 2015