Polypipe

LN: PLP

£811.6m market cap

405.8p last close

Polypipe is a leading European supplier of plastic building products and ventilation systems. UK operations address a broad range of sectors including residential, commercial and civil building demand and a number of subsectors within them.

Investment summary

H119 results showed good progress overall with price increases and acquisition contributions together more than offsetting some market challenges including merchant de-stocking during Q2. Underlying PBT, EPS and DPS were all ahead y-o-y in the 8-9% range. Residential Systems benefitted from Manthorpe’s integration, site investment and cost management actions while the Commercial & Infrastructure division saw UK progress partly diluted by lower exports. Net debt at the period end stood at c £178m, a c £14m uplift from the year end position due to normal seasonal effects including working capital absorption and the FY18 final dividend payment. Management expectations for the year are unchanged.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 411.7 88.3 65.7 26.9 15.1 10.2
2018A 433.2 90.6 67.1 28.1 14.4 9.0
2019E 467.0 99.2 73.7 30.1 13.5 8.8
2020E 479.2 102.0 76.7 31.3 13.0 8.1
Last updated on 13/09/2019
Industry outlook

The Construction Products Association’s Summer estimates project a modest contraction overall in output from the UK construction sector in 2019 and modest growth in the following two years. Infrastructure is expected to be the strongest segment, with new housebuilding and RMI seeing marginal 2019 declines with commercial building activity lower.

Last updated on 13/09/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (£m) 144
Forecast gearing ratio (%) 40
Price performance
%
1m
3m
12m
Actual 2.3 (6.7) 7.3
Relative* 0.0 (7.4) 6.5
52-week high/low 453.8p/307.8p
*% relative to local index
Key management
Martin Payne CEO
Paul James CFO