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 19.7 10.5
2016A 436.9 86.4 61.8 25.0 15.3 8.8
2017E 459.5 90.8 66.0 26.4 14.4 8.6
2018E 475.5 96.0 70.8 28.7 13.3 8.1

Last updated on 25/07/2017

Investment summary

AGM comments confirmed that the first four months of the year were ahead of the previous year (revenue +4.6% l-f-l, +6.0% actual) with underlying progress from both UK and overseas operations. New housebuilding continues to be the dominant driver here and demand for below-ground products is a good lead indicator for other lines used later in the build. Management’s full year expectations and our estimates are unchanged. Current CFO Martin Payne is to become CEO in October following the intended retirement of David Hall, who has led the company since 2005; the search for a new CFO is underway. H117 results are scheduled for 8 August.

Last updated on 03/08/2017

Industry outlook

The Construction Products Association’s February quarterly report 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 housebuilding 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 03/08/2017

Company address

United Kingdom