Financial Highlights
Revenue 23.8% higher at £436.9m, or 9.1% on a like for like basis
UK revenue 10.5% ahead on a like for like basis
Underlying operating profit 28.0% higher at £69.4m
50bps improvement in underlying operating margin to a record 15.9%
Underlying diluted earnings per share 28.9% higher at 25.0 pence per share
Strong cash conversion rate maintained at 97.1%
Net debt down to 1.9 times EBITDA
Recommended final dividend of 7.0 pence per share giving a full year dividend of 10.1 pence per share, 29.5% higher
Operational Highlights
Excellent UK revenue growth reflecting continued strong demand for our products with no discernible impact of the EU Referendum on our end markets
Legacy material substitution and legislative tailwinds driving growth ahead of the overall UK construction market
Nuaire successfully integrated into Group and performing in line with expectations
Middle East manufacturing plant commissioned and in full operation in the second half of the year
Significant growth in export revenue, up by 28.7%
Outlook
Underlying fundamentals and growth prospects in the overall UK construction market remain positive
Level of economic uncertainty has eased since the immediate reaction to the outcome of the EU Referendum, but we remain alert to market risks
Impact of selling price increases, due to the increase in base polymer and other costs, expected to come through from second quarter, expected to deliver planned margin for the full year
David Hall, Chief Executive said:
"Our record performance during 2016 and continuing growth underscores the strength of the Polypipe business model and the robust fundamentals underlying the majority of our market segments. In a period of heightened political and market uncertainties, Polypipe continued to focus on its priorities and delivered results toward the top end of our expectations. The combination of forecast market growth, our focus on executing our strategic development initiatives and resolve to recover input cost inflation mean that we look forward to 2017 being a further year of progression for the Group".
