Road and commercial delays hit Polypipe profits

Grant Prior 3 months ago
Share

Profits at Polypipe took a dip during the first half of the year as the materials giant was hit by delays in road and commercial projects.

Pre-tax profits fell to £30.1m from £30.5m last time on turnover steady at £210.2m from £210m.

Revenue in the commercial and infrastructure division was down 6.6% at £91.2m due to softer markets and bad weather leading to an operating profit fall to £12.5m from £15m.

In the commercial markets there is a 12-18 month delay between projects awards and Polypipe supplying its products.

That has seen Polypipe still suffer from the post Brexit referendum project hiatus.

But the firm added: “There are some encouraging signs that the pick-up in project awards in 2017 is beginning to feed through to demand in this sector.

“In the UK infrastructure sector, the roads programme remained difficult. 

“A timing gap between large projects has constrained performance, but towards the end of the period deliveries for the A14 road project improved, and momentum is building in other road projects.”

Things were brighter in the residential market where continued demand led to a revenue rise to £119m from £112.4m generating operating profits of £23.8m up from £22.9m.

Looking forward Polypipe said: “The UK market outlook for the second half remains mixed with fundamentals in the Residential Systems segment remaining strong, driven by the new housebuild sector, but UK RMI is likely to remain challenging.

“After good performance by the Group in a tough first half, there are signs of improvement in our Commercial and Infrastructure Systems segment, with road programmes beginning to increase in activity.

“The impact of Carillion-related delays has reduced, and improved project awards in 2017 are working through.

Trading has started well in the second half, and the Board is confident that the Group will deliver full year results in line with management expectations.”

Latest news

Forrest sites closed as contractor tries to refinance business

Company denies administration rumours as talks with banks continue
17 hours ago

Pre-construction work starts on £1bn Silvertown Tunnel

Specialist ITM Monitoring lands deal under pioneering Tfl framework
9 hours ago

Wates appoints former Willmott Dixon finance chief

Philip Wainwright joins as new Chief Financial Officer
12 hours ago

Spurs strike deal to use Wembley for whole season

Club agrees contingency plan if new stadium still not ready in the New Year
1 day ago

Galliford Try appoints new highways ops director

Three former Carillion directors now senior directors at highways business
16 hours ago

Plan for £410m London Camden Lock estate rebuilds

Estate rebuilds and linked Barratt scheme will deliver 1,300 homes at Camden Goods Yard site
16 hours ago

McAvoy wins Northumbria offsite hospital wing job

£15m order for new wing at Northumbria Specialist Emergency Care Hospital in Cramlington.
16 hours ago

Strabag confirmed for potash mine tunnel fit-out

Yorkshire potash mine developer signs off final construction contract
16 hours ago

Gravity probe could spell an end to hole digging on sites

Scientists get funding for new generation of sensors which could revolutionise ground investigation work
3 days ago

Amey wins £50m North West roads design

Amey Consulting secures Area 10 design deal adding to its maintenance contract
3 days ago

Boost your online presence – join the new Enquirer Directory

New site for suppliers and buyers will showcase their products, services and latest stories
6 months ago

Construction new work output grows 2.8% in third quarter

Activity rebound driven by new private housing
3 days ago

McLaren gets green light to start Tottenham Hale revamp

Landlord Grainger acquires first phase of redevelopment scheme for £41m
4 days ago

Building boss fined after roof collapse on resi conversion

Lucky escape for three tilers after roof cave-in
4 days ago

Go-ahead for £100m Cardiff Interchange

22-storey flats, offices and bus station plan approved
4 days ago

Willmott Dixon Interiors appoints new Midlands chief

Phil Crowther to head midlands expansion of interiors business
4 days ago

Contractor hunt starts for £50m Leicester mixed-use scheme

Developer keen to talk to builders ahead of 2019 start date
5 days ago

Chinese contractor starts first Liverpool major project

£80m Lexington tower is to be built at Princes Dock for developer Moda
5 days ago

Toshiba scraps £15bn Moorside nuclear power station plan

Plan to build Europe's biggest nuclear power station binned
5 days ago

Betting Spy: Win double for West Ham and Spurs

Double pays 3/1 while Betting Spy is off to the rugby
4 days ago

Latest Aberdeen bypass delay costs Galliford Try extra £20m

Hit on Aberdeen Western Peripheral Route rises to £143m for Galliford Try
5 days ago

Clients fastest payers among Build UK members

Only four member firms pay their bills within 30 days: Full league table of payers
5 days ago

Court hands out £1.2m fine after digger ruptures gas pipe

Distributor and contractor fined after two workers injured during repair work
5 days ago

Subcontractors wanted for £50m Liverpool Cruise terminal

McLaughlin & Harvey has 50 work packages up for grabs: Register your interest now
5 days ago

Grainger signs London council JV for 300-home scheme

Plans to be submitted next year for Lewisham Council Besson Street scheme
5 days ago

Competition watchdog calls in powered access merger

Competition and Markets Authority investigates Nationwide Platforms deal to buy HSS's UK Platforms business
5 days ago

Plans for Birmingham ‘NEC city’ and airport expansion

Plan for extra 3.4m sq ft and 2,500 homes at NEC campus
6 days ago

Fifteen firms to share £8.7bn highways bonanza

Highways England switches to performance rather than profit based deals
6 days ago

Persimmon chief to leave after £75m bonus controversy

Jeff Fairburn to step down "by mutual agreement and at the request of the company"
6 days ago

Acheson & Glover Precast placed in administration

Pre-stressed hollowcore flooring specialist collapses
6 days ago

Contractor services