Takeovers boost Polypipe to pounds 6.4m: Earnings up 9.5% on first-time contributions

FIRST-TIME contributions from acquisitions helped boost profits at Polypipe, the plastics group, to pounds 6.4m before tax for the second half of 1992.

The 9.5 per cent increase was reflected in a similar jump in earnings per share to 2.78p. Turnover rose 7.4 per cent to pounds 49.2m. The interim dividend rises 4.8 per cent to 0.66p.

Kevin McDonald, chairman and managing director, said the results reflected the continuing strength of the core business and the development of the two acquisitions made towards the end of 1991. One of these, GCA Windows, was rationalised from two sites to one.

He said the improvement in net margins arose from good performance in the main plumbing and underground drainage businesses.

He added that he was confident that the group would gain further as a result of its strategy of low overheads and competitive pricing. But he said market conditions remained difficult, and there was still uncertainty about the lifting of the recession.

The company announced the acquisition of Cheshire Precision Shapes, which makes machine tools and plastic moulds.

Capital expenditure in the half-year was pounds 5m, against depreciation of pounds 3.3m. Mr McDonald said the company expected to spend pounds 5m- pounds 7m in the second half. He pointed out that the company was debt-free.

The shares eased 1 penny to 137p.