Polypipe shares (LON: PLP) surged 8% after the group released interim results for the six months ending 30 June 2020.
The group posted a 93% drop in pre-tax profits, from £31.4m in 2019 to £2.3m. Revenue dropped 22% to £173.6m.
“I want to thank all our colleagues for their dedication, hard work and support through what have been unprecedented times for all of us. I am particularly proud of the way they have rallied to support their local communities despite their own circumstances,” said Martin Payne, the group’s chief executive.
We manufactured visors and distributed them and other surplus PPE into local NHS and care homes, supported the Nightingale programme and other repurposing of NHS facilities for care and recovery, and contributed to many other local initiatives that have made a difference. The health and wellbeing of our colleagues, our customers and our communities remains an absolute priority, and we will continue to operate to the highest standards possible.”
The Group has traded robustly through the crisis with continued improvement in trading in recent months. The early actions we took to secure liquidity have positioned the Group to be able to capitalise on opportunities as they arise during the recovery, as well as continue investing in new product development in line with our strategy.”
We have a balanced exposure to the different elements of the UK construction market which provides resilience, and strong medium-term growth drivers. Whilst we remain mindful of the various risks to the UK’s economic recovery, I am confident the Group is well positioned for the future,” he added.
Polypipe has said that it will consider paying a final dividend for 2020 in May 2021. This depends on continued performance ahead of the operating scenario set out in May.
During the height of the pandemic, 1,771 employees were furloughed. The group has made 104 employees redundant, which is significantly less than the 250 people announced earlier this year.