Project delays cause profit wobble at Polypipe

Grant Prior 2 weeks ago
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Polypipe issued a profit warning today following project delays and the impact of recent wet weather on sites.

A trading update from the materials giant for the year to October 31 highlighted a “resilient performance in tough markets.”

Commercial and Infrastructure Systems saw revenues fall 5.8% during the last four months of the period.

Delays in commercial construction projects were partly offset by a good performance in roads but overall revenue was down 0.6% in the sector compared to the same ten months last year.

Polypipe added: “Since the end of October, this has been compounded by flooding and poor ground conditions, most notably in the North and the Midlands, meaning contractors and developers have not been able to access sites for civils and groundworks activities.”

The company said it now predicts “underlying operating profit for the year to be just below its previous expectations.”

Martin Payne, Chief Executive Officer, said: “Despite increasingly challenging market conditions and the impact of the recent severe weather, we still expect to report good growth in profits, albeit just below our previous expectations.

“Fundamentals in the Group’s markets remain strong, with a structural housing shortage, historically low interest rates, real wage growth and near full employment which means that we view our future prospects with confidence“.

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