Shares of plastic pipe company, Polypipe (LON: PLP) are rallying on Monday after the company increased its profit guidance once more, saying that performance in November and December has exceeded expectations.
The company said that it now expects underlying profit for the year to be approximately £40 million compared to its previous consensus range of £35 to £37 million. it was only a month ago Polypipe said it expected its profits to be around £35 million.Â
The plastic pipe manufacturer also noted that its revenue for November was 8% higher than the prior year, stating that residential markets performed well while operating margins continue to benefit from the improved volume.Â
However, the company did note that the operating margin is still not back to pre-coronavirus levels due to operating inefficiencies caused by the pandemic.Â
Polypipe rounded off its trading update by saying that it has a healthy order book heading into the new year, although, there is some cautiousness due to the potential impact of a no-deal Brexit.Â
Polypipe shares have risen 10.94% following the update, currently trading at 507p after closing on Friday at 457p.