NEWS
Sales fall at Polypipe despite strong second half of 2020
An “unprecedented trading environment” caused an 11% dip in sales at UK- based Polypipe last year. Sales declined to just under £399 million (US$548m), while pre-tax profits fell 60% to around £24m (US$33m). Despite these results, the company reported a strong second half to the year – which have continued into 2021. “Trading conditions since the end of the year, together with the structural growth markets we are aligned to, provide confidence in the outlook for the current year and over the medium term,” said Martin Payne, CEO of Polypipe.
Sales in the residential systems market – which comes mainly from the UK – fell by 14% to £224m (US$308m). Profits in this division fell by around 40%, to around £30m (US$41m). Results in the commercial and infrastructure sector also
Sales at Polypipe fell to £399m in the face of “unprecedented trading”, said the company
declined: revenue fell almost 7% to £175m (US$240m) while profits halved to around £12m (US$16m). Exports from this division, which accounts for around 20% of its overall revenue, was nearly 6% lower than the previous year, as many foreign markets were similarly affected by Covid-19. One exception was its recent acquisition Permavoid, which grew by 30% with contracts in the green roof, podium deck and sports pitch markets. Polypipe has made three
acquisitions in 2021, including pultrusion and compression moulding firm Plura Innovations. The move will see Plura
integrated into Polypipe’s Infrastructure & Landscape division to boost manufac- turing capabilities and broaden its product offer to include access chambers and specialist ducting systems, plus landscape solutions for urban and suburban environments. Polypipe also boosted the amount of recycled material it uses in its products to
nearly 46% (compared to 42% in the previous year). The company has set a target of 62% by 2025. “Our businesses have
started the new year strongly with no discernible impact on demand from the current lockdown,” said Payne. “We believe we are in a strong position to deliver an improved performance in 2021.” The company will change its name to Genuit from 6 April 2021 – though will retain its Polypipe branding. �
www.polypipe.com
Dyka helps lift performance at Tessenderlo
Dyka Group – the extrusion division of Belgian industrial group Tessenderlo – helped to raise performance within its industrial solutions division. Full-year sales in this part of the business fell by around 3% to €509 million (US$597m). However, the second half revenue increase in Dyka Group – due mainly to a newly acquired production plant in France, helped to offset a decline in the first half of the year.
Elsewhere, the Coronavirus pan- 8 PIPE & PROFILE EXTRUSION | April 2021
demic affected production at another plant in France, and a number of its JDP sales branches in the UK were closed temporarily.
Despite the sales decline, the industrial systems division reported an EBITDA of €53m (US$62m), an increae of almost 30%. Reduced first-half profits for Dyka
were offset by an improved result in the second half of the year, mainly thanks to a volume increase. “The favourable development of
input costs, as well as cost saving measures taken to mitigate the Covid-19 impact, further positively impacted 2020 profits,” said the company.
Despite continuing uncertainty in the first half of this year, Tessenderlo expects this year’s profits to be in line with those of 2020. This takes into account the expected negative foreign exchange effect in 2021, following the weakening of the US dollar, it said. �
www.dyka.com
www.pipeandprofile.com
IMAGE: POLYPIPE
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