# Polypipe Group plc Continued growth and strategic progress - Link: https://www.directorstalkinterviews.com/polypipe-group-plc-continued-growth-and-strategic-progress/412769900 - Published: 2019-03-19T08:01:58+00:00 - Author: Charlotte Edwards **Polypipe Group plc** (LON:PLP), a leading provider of sustainable water and climate management solutions for the built environment, today announces its audited results for the year ended 31 December 2018. Financial Results | 2018 | 2017 | Change | | Statutory measures | | | | | Revenue | £433.2m | £411.7m | +5.2% | | Operating profit | £65.8m | £62.5m | +5.3% | | Profit before tax | £58.2m | £55.6m | +4.7% | | Earnings per share (basic) | 24.5p | 22.7p | +7.9% | | Cash generated from operations | £90.0m | £80.4m | +11.9% | | Dividend per share | 11.6p | 11.1p | +4.5% | | Alternative performance measures | | | | | Underlying operating profit^(1) | £74.0m | £72.6m | +1.9% | | Underlying operating margin^(1) | 17.1% | 17.6% | -50bps | | Underlying profit before tax^(1) | £67.1m | £65.7m | +2.1% | | Underlying earnings per share (basic)^(1) | 28.4p | 27.2p | +4.4% | | Leverage (times pro forma EBITDA^(2)) | 1.7 | 1.6 | 0.1 | **Financial Highlights** · Revenue growth of 5.2% despite mixed market conditions demonstrating strength of diversified business model · Underlying operating profit 1.9% higher and underlying profit before tax 2.1% higher · Resilient margin at 17.1% · Underlying basic earnings per share 4.4% higher · Robust balance sheet and continued strong operational cash generation. Group pro forma leverage of 1.7x (2017: 1.6x) despite £42.5m invested in acquisitions, net of disposals · Proposed final dividend of 7.9p, bringing the total for the year to 11.6p, 4.5% ahead of last year **Operational Highlights** · UK revenue growth ahead of industry benchmark at 5.9% relative to Construction Products Association winter forecast decline of 0.2% for 2018 · Residential Systems revenue 9.8% higher and 8.5% higher on a like-for-like basis with strong growth in housebuilding sector · Commercial and Infrastructure revenues declined 0.2% for the year but a strong second half performance of 6.7% growth (of which 5.3% was on a like-for-like basis), benefitted from successful product launches and new road projects gaining momentum · Price increases successfully passed through to mitigate cost inflation · Second half acquisitions – Permavoid and Manthorpe – performing in line with our expectations and integration progressing well · France disposal completed in March 2018 · Alternative manufacturing strategy delivered in the Middle East · Recycled plastic represents an improved 40.2% of the Group’s overall plastic usage( 2017: 34.0%) **Outlook** · Polypipe has made significant strategic progress in 2018 together with a continued focus on organic growth ahead of market and strong cash generation · The fundamentals of our markets remain robust with a continued structural housing shortage in the UK, Help-to-Buy extended to 2023, historically low interest rates and good mortgage availability underpinning new housebuilding activity. RMI and commercial and infrastructure markets have been and will continue to remain challenging · Whilst we remain vigilant to the impacts of uncertainty on our markets, our balanced portfolio positions the Group well, and we look forward to another year of progress in 2019 > **Martin Payne, Chief Executive Officer, said:** > “We are delighted to report another record performance, despite a backdrop of > challenging market conditions. Our second half of the year was strong, and we > completed two significant acquisitions as part of our strategy to broaden our > market offering. Both Manthorpe and Permavoid are performing in line with expectations > and we look forward to further progress. We continue to see strong cash generation, > and the long-term growth drivers of legacy material substitution and legislative > tailwinds, together with our strong balance sheet, position us well for the future.” Share on: