Plastic pipe systems maker Polypipe (Doncaster / UK; www.polypipe.com) posted 28% growth in 2016 underlying operating profit at GBP 69.4m (EUR 83m) as revenue rose nearly 24% at GBP 437m, buoyed by significant contribution from its Nuaire ventilation business unit acquired in 2015 as well as strong UK sales growth. Excluding acquisitions and currency effects, revenue was 9.1% higher than the prior year. The underlying operating margin rose to a record 15.9% from 15.4%. Underlying profit after tax was 28.9% better at GBP 50m.

The UK Commercial and Infrastructure Systems segment revenue was GBP 184.2m, up 16.1% while Residential Systems gained 6.6% at GBP 207.6m. Underlying operating profit improved 44.3% at GBP 29m and 19.2% at GBP 39.1m, respectively.

CEO David Hall said the UK market’s strong final quarter continued into the new year, boosted by some pre-price increase orders from stockists. The uncertainty following the Brexit vote seemed to have eased and indications point to continuing growth in UK construction market.

He said passing on the input cost inflation is one of Polypipe's most immediate priorities. The impact of these price increases is expected to come through from the second quarter, helping it to meet profit margin targets in 2017, Hall added.