Polypipe Share Discussion Threads

[johnsoho] 07/10/2015 08:59

Why the sudden drop in the SP? anyone any ideas?

[gargleblaster] 30/9/2015 21:01

I think so johnv. He and his missy may just be buying a holiday home or such like - so imv you can't react to every bit of news (otherwise your trading costs would be prohibitive). The stock looks cheap to me - fwd per of 14.5 & PEG of less that 0.5, barriers to entry etc (dyor) - so I will be sitting tight (subject to other events)! Good luck!

[johnv] 30/9/2015 17:38

Overhang from the director selling?( I know its not a lot) and gap to fill 300 to 312p.

[gargleblaster] 13/8/2015 07:59

Good write up in Shs mag;

As the mania for M&A continues, the ability to do good deals remains undiminished as drainage expert Polypipe (PLP) illustrated with its 5 August acquisition of Welsh-based manufacturer and distributor of ventilation systems, Nuaire. In a deal that cost Polypipe £145 million analysts are characterising Nuaire a good strategic fit and is in line with management’s stated strategy of broadening its exposure to markets that benefit from energy legislation.

Analyst Christen Hjorth at Numis thinks strategic and synergy considerations aside, the deal should ‘be substantially earnings accretive (15% in 2016 – the first full year of ownership).’

When we flagged up Polypipe as a Play of the Week on 16 July, we told readers that a combination of favourable UK market conditions, overseas opportunities and potential acquisitions funded by a robust balance sheet were prominent among the £651 million cap’s attractions. Not only is Polypipe one of the largest suppliers of plastic pipe systems for commercial and residential applications in the UK, it is also one of the 10 leading European piping suppliers.

With Polypipe trading on a 2016 P/E of 12.4 and dividend yield of 3.2%, Numis raises its target price to 360p and upgrades to a ‘buy’ recommendation.

Both Deutsche Bank and Numis raised targets after this acquisition and we share their bullish view.

[gargleblaster] 06/8/2015 08:22

IC stick with their buy rating

Polypipe’s (PLP) access to high-growth markets backed by environmental legislation has been significantly boosted by its £145m acquisition of ventilation product manufacturer Nuaire. News of the deal, which is expected to spark double digit enhancement to EPS, sent shares in the building products specialist up 8 per cent.

As legislation aims to reduce carbon emissions, the UK ventilation market is forecast to outstrip domestic construction market growth. Wales-based Nuaire, which will continue to operate as an independent division, generated sales of £63.5m and profits of £12.8m in the year to June. Prior to the acquisition, broker Berenberg forecast EPS of 17.9p in the year to December 2015, rising to 21.3p in 2016.
IC View:

At 322p, shares in Polypipe have jumped 24 per cent on our buy advice (259p, 1 Apr 2015), yet even before factoring in this earning-enhancing deal still trade at a discount to peers. Given the group’s increased exposure to vibrant legislation-backed markets, we’re keeping it on a buy.

Last IC view: Buy, 259p, 1 Apr 2015

[etavener] 05/8/2015 09:45

This is a bit leaky.

Broke out yesterday and today they announce an acquisition.

I put these in my Stock challenge with the aim to buy these before results. Time for a re-think.

[dolgyn] 05/8/2015 08:07

perhaps,,,lol

[minky] 05/8/2015 08:07

Keyno,
They may prefer to use copper as with sweated joints they can be smaller than the plastic and tend to look much neater.

[gargleblaster] 05/8/2015 08:01

This looks like a good acquisition to me given that the ventilation business is growing fast. Also good to see an in line statement (below) given that we get the interims in 2 weeks. Perhaps the acquisition was leaked - which may explain why the share price rose yesterday. opening higher to day as well!

Polypipe current trading

Our strategic growth initiatives are delivering on plan in a continued positive market environment in our main UK market, which means we remain confident that the Company will deliver results for the year in line with board expectations. Polypipe will report its interim results for the six months ending 30 June 2015 on 20 August 2015.

[gargleblaster] 11/5/2015 12:46

Finally broke through the 280p mark - new closing high if we hold this level!

[robow] 27/4/2015 16:24

looking to breakout

[johnv] 21/4/2015 22:55

Main write up in momemntum investor this month at 267p

[keyno] 21/4/2015 17:28

I was taking a look round a new-build house yesterday and was told that the pipes were coppper, not plastic, this being the "preferred" material "these days".

I was a bit suprised at that remark. Comments anybody?

[johnsoho] 26/3/2015 16:43

A very nice set of results I think, only reason we are down today IMO is because the market as a whole is down.

RNS Number : 4887I

Polypipe Group PLC

26 March 2015

26 March 2015

Polypipe Group plc

Results for the Year ended 31 December 2014

Polypipe delivers on strategy with strong profits growth

Polypipe Group plc ("Polypipe" or the "Group"), a leading manufacturer of plastic piping systems for the residential, commercial, civils and infrastructure sectors, today announces its full year results for the year ended 31 December 2014.

Financial Results


2014 2013 Change

Revenue GBP327.0m GBP300.8m 9%
Operating profit(1) GBP46.3m GBP39.7m 17%
Profit before tax (pre exceptionals)(2) GBP37.6m GBP24.5m 53%
Profit before tax GBP16.9m GBP24.6m
Adjusted earnings per share(3) 16.11p 9.95p 62%
Basic earnings per share 6.96p 10.00p
Interim dividend - declared 1.50p -
and paid
Final dividend - recommended 3.00p -
Net debt GBP76.9m GBP84.1m (9%)

1. Excludes operating exceptional items
2. Excludes operating exceptional items and exceptional finance costs
3. Excludes operating exceptional items, exceptional finance costs and related tax relief
Financial Highlights

-- Delivering the strategy set out during the Group's successful IPO in April 2014
-- UK construction market recovery, combined with our strategic focus on structural growth opportunities, generated revenue growth from UK operations of 12.4% over 2013

-- Improved UK volumes resulted in Group operating profit increasing by 16.6% to GBP46.3m(1)
-- Strong cashflow - cash from operations(1) after capex 26.3% ahead of prior year
-- Recommended final dividend of 3.00 pence per share
-- Exceptional items relate to IPO costs (GBP12.2m) and IPO related refinancing costs (GBP8.6m).

Operational Highlights

-- Strong demand for residential piping systems from UK housebuilders, increasingly from smaller developers and projects outside of London and the South-East

-- Good volumes from road and rail projects and the development of high rise, multi-occupancy buildings in London

-- Structural growth opportunities driving the business: significant increase in sales of Water Management Solutions, driven by legislation aimed at reducing flood risk and continued growth in Carbon Efficient Solutions supported by the need for higher performance ventilation systems

-- Broadened product offer through two small bolt on acquisitions - the Ferrob Ventilation business in October 2014 and the Surestop business in January 2015

-- Improved export performance underpinned by growing presence in the Middle East
David Hall, Chief Executive said:

"I am delighted with the progress that we have made following the Group's successful IPO in April 2014 and these results show that we are delivering on the strategy we set out at that time. The Group's growth ahead of a strong UK market during the year demonstrates our ability to seek out new opportunities for our Water Management and Carbon Efficient Solutions. Our growth initiatives, combined with this positive market backdrop in our main UK market, mean we entered 2015 with optimism and at this early stage of the year, we are confident that the Group will deliver results for the year in line with market expectations".

The Company also announces that following the Chairman's decision to step down from the Board after the 2015 Annual General Meeting, as had previously been disclosed in the Company's Prospectus, the Board has formally appointed Ron Marsh, the Senior Independent Director to succeed Alan Thomson as the Chairman of the Company. A separate RIS announcement has been released to the market at the same time as the release of the Company's full year results.

[seans66] 10/3/2015 21:48

2nd time in a week the share price has had a dramatic fall just the markets close.

[gargleblaster] 04/3/2015 09:40

Think it is just high volatility - nothing to concern yourself about if a long term investor.

Does anyone know when the prelims are - Sharescope indicates that they are due anytime?

[tradermel] 04/3/2015 07:55

I tried to evaluate what caused that drop yesterday, but most of the sells were very small with a couple decent sized PI sized sells in among barring the two chunky sells at 1551. I thought perhaps somehow people had heard a news leak of a negative RNS might come out this morning, but nothing. Just one of those twists triggered by ... nothing!

[toyin] 03/3/2015 19:03

Maybe somebody got divorced!

[andy2205] 03/3/2015 16:50

c300k sell this pm, is all I can see

[johnsoho] 03/3/2015 16:46

Wonder what caused the very sudden 'end of day' drop......anyone any ideas?

[gargleblaster] 26/2/2015 13:28

If we hold 270p it will be a new high!

[saj3] 26/2/2015 13:17

Breaking out!

[robow] 24/2/2015 08:38

Prelims are on 26th Mar (from website)