Record results from Polypipe

Ventilation acquisition for PolypipeSurface water treatment drainage systemDrainage installed to keep Somerset village openApproval for Ridgistorm-XLPolypipe IPO cost £12.4m

Building products group Polypipe has reported record revenue and profits thanks to acquisitions, construction market recovery and flood defence projects.

Polypipe, which floated on the London Stock Exchange in April 2014, made pre-tax profit of £41.5m in 2015 (2014: £16.9m) on revenue of £352.9m (2014: £327.0m).

The underlying operating profit for 2015 was up 17% to £54.2m (2014: £46.3m).

The £144.3m acquisition of ventilation manufacturer Nuaire in August 2015 expanded the product range of the business and its technical capability in building services. An upswing in sales to the construction industry also contributed to company growth, as did flood defence work.

Chief executive David Hall said: “We delivered a number of significant projects during the year helping to design some innovative SUDS (sustainable urban drainage systems) including the use of our 3-metre diameter pipe as well as experiencing a steady increase in demand from smaller new build residential sites as they commenced development. During 2015 the group manufactured solutions for more than 700 different projects to prevent future flooding.”

In summary, he said: “2015 was a record performance and another year of excellent progress for the group.  The acquisition of Nuaire was an important step in our strategic development and our growth initiatives continued to deliver. I am delighted to report such a strong performance since our IPO in April 2014, with underlying operating profit growth of 36.5% over the last two years. While there are economic and political uncertainties, 2016 has started well and the board is confident that the market fundamentals in our main UK market remain positive and that we are pursuing a sound strategy for the future development of the business.”