Record first half performance

Polypipe Group plc (“Polypipe” or the “Group”), a leading manufacturer of plastic piping and ventilation systems for the residential, commercial, civils and infrastructure sectors, today announces its half year unaudited results for the six months ended 30 June 2016.

Financial Results

Underlying operating profit1£37.7m£25.7m+47%
Underlying operating margin116.9%15.1% 
Underlying profit before tax1£33.7m£23.3m+45%
Profit before tax£29.9m£23.2m+29%
Underlying earnings per share113.6p9.2p+48%
Earnings per share (basic)12.0p9.1p+32%
Cash generated from operations£30.5m£17.8m+71%
Interim dividend3.1p2.3p+35%

Financial Highlights

  • Revenue 31% higher at £223.3m
  • UK revenue 8.1% ahead excluding acquisitions
  • Underlying operating profit 47% higher at £37.7m
  • 180bps improvement in underlying operating margin to a record 16.9%
  • Underlying earnings per share 48% higher at 13.6 pence per share
  • Cash generated from operations 71% higher at £30.5m
  • Net debt down to 2.3 times pro-forma LTM EBITDA2
  • Interim dividend increased 35% to 3.1p pence per share

Operational Highlights

  • After an excellent start, demand from all segments of our core UK market has remained strong
  • Continued progress in growth initiatives of substitution, carbon efficiency and water management
  • Nuaire acquisition performing well – some early success in specification of Nuaire systems with Polypipe duct
  • First delivery from manufacturing plant in Dubai made during July


  • Order intake has remained consistent with the normal seasonal pattern and yet to show any signs of weakening following the EU Referendum
  • Despite uncertainty, fundamentals of the market remain robust
  • The business is extremely well balanced across its various sectors and does not have an over reliance on any particular part of the industry
  • Encouraging comments from UK Government recognising the need to provide stimulus for construction
  • Plan to continue with development initiatives
  • Alert to the economic situation - able to adapt capital expenditure and capacity quickly
  • Net debt on track to be 2 times EBITDA2 by year end

David Hall, Chief Executive said:

“We have delivered another record performance in the first half continuing the strong momentum from last year. Our strategic focus on the structural growth opportunities, together with the acquisition of our Nuaire ventilation business has accelerated our growth.

Despite the uncertain economic backdrop, the long-term structural drivers of our business remain strong, our balanced business model means that we are not overly exposed to any particular sector and the nature of the Group’s production processes enables us to adapt and flex quickly to changes in demand. The Board is confident that the cash generative characteristics of the business and a commitment to remain agile will enable the Group to continue to develop and outperform, whatever the market conditions.”

1. Underlying profit and earnings measures exclude certain non-underlying items which are defined in Note 4 to the Financial Statements, and where relevant, the tax effect of these items.
2. EBITDA is defined as operating profit before non-underlying items, depreciation and amortisation. Pro-forma LTM EBITDA is defined as EBITDA for the twelve months preceding the balance sheet date, adjusted to include a full year of EBITDA from acquisitions made during those twelve months.

For further information please contact:

David Hall, Chief Executive Officer
Martin Payne, Chief Financial Officer
+44 (0) 1709 770 000

Mike Smith
Nina Coad
Rosheeka Field
+44 (0) 20 7404 5959

A copy of this report will be available on our website today from 7.00am.

An analyst presentation will be held today, 16 August at 9.00am (BST). To dial in the call details are:

Participant dial in number - +44 (0) 1452 555 566
Conference ID – 64521841

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. It is also a leading designer and manufacturer of energy efficient ventilation systems in the UK.

The Group operates from nineteen facilities in total, and with over 20,000 product lines, manufactures the United Kingdom’s widest range of plastic piping systems for heating, plumbing, drainage and ventilation. 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 2016

Date: 16 August 2016