City File: Polypipe

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The Independent Online
POLYPIPE is one of the few building materials companies still thriving. Analysts reckon that in two weeks' time the Doncaster maker of plastic piping will unroll pounds 15m-plus pre-tax for the year ending 30 June, up from pounds 14m last year. The company has virtually no debt, but cannot afford to slip up. At 96p Polypipe sells for 15 times earnings, which is hardly bargain basement. The company has also made acquisitions where profit-related earn-out payments are to be settled in shares. No doubt the chairman, Kevin McDonald, would like to see the number he has to issue kept in bounds.