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)
2015A 352.9 69.3 48.0 19.4 20.8 11.1
2016A 436.9 86.4 61.8 25.0 16.1 9.3
2017E 459.5 90.8 66.0 26.4 15.3 9.1
2018E 475.5 96.0 70.8 28.7 14.0 8.6

Last updated on 24/04/2017

Investment summary

The latest trading update shows that all three reporting divisions are continuing to progress well and management expectations for the year are unchanged. Polypipe is a well-positioned business and management succession indicates continuity of the strategic approach. A premium rating to the sector is warranted, in our view.

Last updated on 26/05/2017

Industry outlook

The Construction Products Association’s (CPA) latest quarterly (dated February) contained growth forecasts across all UK construction sectors of +0.8% in 2017, +0.7% in 2018 and +2.2% for 2019. Within this, private house building starts are projected to rise at a steady +2% pa across this timeframe, while infrastructure spending – not all in Polypipe’s sectors – is above this in 2017 and accelerating further to 2019. Partly offsetting this, activity in the commercial, industrial and retail subsectors is forecast to decline in each of the next two years.

Last updated on 02/05/2017

Company address

United Kingdom