Polypipe

LN: PLP

£926m market cap

463p last close

Polypipe is a leading supplier of largely plastic building products and systems. Operations in the UK (c 90% of revenue) address a broad range of sectors including residential, commercial and civil building demand and a number of subsectors within them.

Investment summary

Approaching the year end, slower trading in certain sub-sectors causes us to trim our FY19 earnings estimates by 5% (with more modest adjustments thereafter). This does not change our view that the company is well placed by sector to benefit from some long-term structural drivers in the building materials space.

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 17.2 11.6
2018A 433.2 90.6 67.1 28.1 16.5 10.2
2019E 447.5 98.8 69.8 28.4 16.3 10.5
2020E 478.4 104.6 74.8 30.3 15.3 9.2
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 21/11/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (£m) 165.4
Forecast gearing ratio (%) 46
Price performance
%
1m
3m
12m
Actual 1.2 21.6 26.2
Relative* 0.2 19.9 21.7
52-week high/low 477.0p/312.8p
*% relative to local index
Key management
Martin Payne CEO
Paul James CFO

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