Plastic pipe systems manufacturer Polypipe (Doncaster / UK; www.polypipe.com) said its full year pre-tax profits for 2014 declined by 31% to GBP 16.9m (EUR 23.1m), mainly as a result of costs relating to its IPO listing in April 2014. Revenues, however, improved by 9% to GBP 327.0m, driven by the continuing recovery in the UK construction market. Excluding exceptional items, the company said its pre-tax profits grew by 53% to GBP 37.6m and its operating profits rose by 17% to GBP 46.3m.

Polypipe said it benefited from strong demand for residential piping systems from UK housebuilders, as well as good volumes from road and rail projects and the development of high rise, multi-occupancy buildings in London. Sales of water management systems were boosted as a result of legislation aimed at reducing flood risks, while exports improved thanks to the company’s growing presence in the Middle East.

“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,” stated CEO David Hall. The company has broadened its product offering through the acquisition of the Ferrob ventilation business in October 2014 and the Surestop plumbing business in January 2015, he said.

While the outlook for the UK construction market is positive, the economies in other European countries, and in France in particular, are more fragile, noted Hall. “However, this represents only a relatively minor component of our overall business and we do not envisage significant deterioration – believing that our slow and steady improvements to our French business will benefit in the medium term as the economy recovers,” he added.

Polypipe also announced that it has appointed Ron Marsh, its senior independent director, as chairman, to succeed Alan Thomson. Thomson announced last year that he would step down on 27 May 2015.