Polypipe Group announced an update on trading for the 10 months ended 31 October 2019. Operating margins were 30 bps higher driven by margin-accretive acquisitions and strong cost controls. The company remains highly cash-generative and the long-term fundamentals of its markets remain robust. Revenue was 0.6% lower than the previous year on a reported basis after benefitting from a good H1 performance.
According to the company, trading in the last four months reflects strong 2018 comparatives and short-term political and economic uncertainty impacting the markets, with group revenue 1.7% higher than the prior year. Since end-October, this has been compounded by flooding and poor ground conditions. Currently, the board expects underlying operating profit for the year to be just below its previous expectations.
Performance in the residential systems segment in the four months ended 31 October 2019 was broadly consistent with H1, with revenue 7.9% higher than the prior year. While the commercial and infrastructure systems segment’s revenue declined by 5.8% in the four months ended 31 October 2019 against strong comparatives.