Polypipe delivers on strategy with strong profits growth

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 full year results for the year ended 31 December 2014.

Financial Results

 20142013Change
Revenue£327.0m£300.8m9%
Operating profit1£46.3m£39.7m17%
Profit before tax (pre exceptionals)2£37.6m£24.5m53%
Profit before tax£16.9m£24.6m 
Adjusted earnings per share316.11p9.95p62%
Basic earnings per share6.96p10.00p 
Interim dividend - declared and paid1.50p- 
Final dividend - recommended3.00p- 
Net debt£76.9m£84.1m(9%)

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 the Group’s successful IPO in April 2014
  • UK construction market recovery, combined with our strategic focus on structural growth opportunities, generated revenue growth from UK operations of 12.4% over 2013
  • Improved UK volumes resulted in Group operating profit increasing by 16.6% to £46.3m1
  • Strong cashflow - cash from operations1 after capex 26.3% ahead of prior year
  • Recommended final dividend of 3.00 pence per share
  • Exceptional items relate to IPO costs (£12.2m) and IPO related refinancing costs (£8.6m).

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 volumes from road and rail projects and the development of high rise, multi-occupancy buildings in London
  • Structural growth opportunities driving the business: significant increase in sales of Water Management Solutions, driven by legislation aimed at reducing flood risk and continued growth in Carbon Efficient Solutions supported by the need for higher performance ventilation systems
  • Broadened product offer through two small bolt on acquisitions - the Ferrob Ventilation business in October 2014 and the Surestop business in January 2015
  • Improved export performance underpinned by growing presence in the Middle East

David Hall, Chief Executive said:

I am delighted with the progress that we have made following the Group’s successful IPO in April 2014 and these results show that we are delivering on the strategy we set out at that time. The Group’s growth ahead of a strong UK market during the year demonstrates our ability to seek out new opportunities for our Water Management and Carbon Efficient Solutions.   Our growth initiatives, combined with this positive market backdrop in our main UK market, mean we entered 2015 with optimism and at this early stage of the year, we are confident that the Group will deliver results for the year in line with market expectations.

The Company also announces that following the Chairman’s decision to step down from the Board after the 2015 Annual General Meeting, as had previously been disclosed in the Company’s Prospectus, the Board has formally appointed Ron Marsh, the Senior Independent Director to succeed Alan Thomson as the Chairman of the Company. A separate RIS announcement has been released to the market at the same time as the release of the Company’s full year results.

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, Thursday 26th March at 08:30 (GMT). To dial in the call details are:

Tel: +44 (0) 1452 555566
Code: 89739353

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.

Preliminary Results Announcement 2014

Date: 26 March 2015