Polypipe Group PLC (LON:PLP) has again improved its profit guidance for the calendar year as trading in November and December continues to be better than expected, particularly in the housebuilding market.
The maker of plastic pipes for the residential, commercial, civils and infrastructure sectors, said it is eyeing underlying operating profit of roughly £40mln for the year, compared to the current analyst consensus range of £35mln-£37mln.
Just four weeks ago, Polypipe said it expected profits to be at least £35mln.
With its revenue for November 8% higher than the prior-year and December projected to be similar, the FTSE 250-listed group said operating margins continue to benefit from improved volumes, although they are still below normal levels because of coronavirus (COVID-19) measures.
“The group enters the new year with a strong order book and some cautious optimism, although uncertainty currently exists about the effects of a no-deal Brexit,” it said in the trading update.