Polypipe profit falls slightly after harsh winter weather bites
Source - SMW
Polypipe Group, a manufacturer of plastic piping and ventilation systems, posted a small fall in first-half profit after harsh winter weather weighed on revenue.
Pre-tax profit fell 1.3% to £30.1m amid broadly flat revenue of £210.2m.
The company declared an interim dividend of 3.7p per share, up 2.8% on-year.
Revenue on the UK grew by 0.9%, but when the £8m estimated impact of adverse weather in February and March was excluded, it grew by 5%.
For the second half of the year, the outlook in the UK remained mixed, the company said.
Fundamentals in the residential systems segment continue to be strong, driven by the new housebuild sector, though RMI was likely to remain challenging, it added.
'Trading has started well in the second half, and the board is confident that the group will deliver results in line with management expectations for the year ending 31 December 2018,' Polypipe said.
Chief executive Martin Payne said the group had performed well in the first half.
'With the group's balanced business model, underpinned by the long-term growth drivers of legacy material substitution and continuing legislative tailwinds in water management and climate change, I am confident the group will make good progress in the second half of the year,' he said.