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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 15.0 9.3
2017A 411.7 88.3 65.7 26.9 13.8 8.4
2018E 433.0 92.9 70.1 28.7 12.9 7.8
2019E 443.5 96.4 73.6 30.1 12.3 N/A

Last updated on 20/07/2018

Investment summary

A capital markets event (9 May) and an AGM update (23 May) have served to remind us of group strategy and current trading conditions respectively. The former showcased the wider management team and reinforced the company’s above-market growth credentials with innovation/new product development and expansion into adjacent areas seen as key drivers. With regard to trading, we believe ytd progress to the end of April for both divisions was affected by a period of adverse weather, although the underlying group revenue growth rate is thought to be c 5%. As before, Residential Systems has been the primary contributor, diluted somewhat by Commercial & Infrastructure Systems where demand pull through remains subdued. Overall, management’s full year expectations are unchanged. Interim results are due to be reported on 14 August.

Last updated on 27/07/2018

Industry outlook

Construction Products Association estimates currently project flat overall output from the UK construction sector in 2018. 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 27/07/2018

Key management

Martin Payne, CEO
Paul James, CFO

Company address

Broomhouse Lane
DN12 1ES
United Kingdom