Polypipe (PLP)

Business description

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.

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 387.2 84.5 60.9 24.6 15.7 9.7
2017A 411.7 88.3 65.7 26.9 14.4 8.7
2018E 433.0 92.9 70.1 28.7 13.5 8.2
2019E 443.5 96.4 73.6 30.1 12.9 N/A

Last updated on 20/04/2018

Investment summary

Newbuild residential was the standout sector for Polypipe in FY17 with relatively subdued performance in Commercial and Infrastructure. Overall, underlying PBT and EPS from ongoing operations rose by 7.9% and 10.1% with full year DPS up by 9.9%. Our estimates are slightly lower adjusted for a non-core business disposal but recent share price weakness is overdone in our view.

Last updated on 20/04/2018

Industry outlook

The Construction Products Association’s October update pointed to an expectation of 0.7% industry growth in 2017 and flat outturn for FY18. Behind these headline figures, infrastructure (major projects, water, road and rail) and private housebuilding are expected to be the positive drivers, against slower commercial and industrial.

Last updated on 06/04/2018

Key management

Martin Payne, CEO
Paul James, CFO

Company address

Broomhouse Lane
DN12 1ES
United Kingdom