We expect forthcoming FY16 results (30 March) to highlight the strength of Polypipe's (LON:PLP) model with a strong y-o-y uplift in earnings and good cash generation. The company is well positioned and aligned with long-term UK government policy direction and we expect greater clarity to benefit this industry leader. Translating this to earnings growth above the peer average will be key to sustaining a premium rating.
Strong business, well positioned
Polypipe’s excellent market position has been constructed over an extended timeframe under a coherent and consistent strategy to build out a multi-sector, multi-channel provider of plastic building products. Further substitution by these products for other materials and the translation of favourable long-term UK government policies (in housing, water management and carbon efficiency) into practical and actionable industry level initiatives is expected to deliver above average top line growth to an already profitable and cash generative model.
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