Doncaster-based piping system manufacturer Polypipe Group has reported like-for-like revenue growth for the first ten months of its financial year and said it expects to hit operating profit expectations.
In the 10 months to 31 October 2015, the Edlington business posted revenue of £299.3m, a 5.9 per cent increase on the same period in the previous year.
Excluding acquisitions and eliminating currency movements and the impact of fewer working days during the period, like-for-like revenue growth for the group over this 10-month period was 3.1 per cent. Reported revenue growth had been impacted by polymer cost deflation passed onto customers and by weaker than expected demand from the residential repair, maintenance and improvement segment, Polypipe said. Underlying operating profit, including the contributions from the Surestop and Nuaire businesses acquired this year, was on track and Polypipe expects its full year underlying operating profit to be in line with market expectations.
David Hall, chief executive, said he was pleaded with the results and added: “In a period when there were two fewer working days our reported revenue growth has been distorted by the pass through of lower polymer costs and also the weaker than expected revenue from the RMI segment, I am pleased to be able to report that, as a result of margin improvements, we are trading in line with plan after 10 months.”