POLYPIPE
Building products group announces revenue slump and job losses due to coronavirus pandemic
UK group Polypipe (Doncaster; www.polypipe.com) is to axe 250 jobs, around 8% of its workforce, in response to a slump in demand due to the coronavirus pandemic, and warned shareholders that first half revenues were down by more than a quarter.

In a Covid-19 update issued this month the group said the redundancy move was “regrettable but necessary…to adjust our manning levels and cost base to reflect this level of demand.” No plant closures are planned, however.

Polypipe said it had clawed back some of the revenues it had lost in the early stages of the coronavirus pandemic, but still expects to report turnover for the six months to the end of June around 26% down on the same period in 2019.

In April the firm said its sales were down 66%, and it was operating at approximately 70% below normal demand. Polypipe had worked on some health service contracts but the shutdown of housebuilding throughout April and May meant recovery in residential activity had been “somewhat more subdued.”

In the update ahead of its annual general meeting in September Polypipe said it was encouraged by its performance in May and June versus April, which was in part boosted by increased levels of government investment in infrastructure projects. “However, at this stage we remain cautious as to whether this performance will be sustained into the autumn and winter,” it added. Polypipe said it currently had a quarter of its workforce furloughed, compared to 61% at the height of the crisis.

In May the group announced it had raised around GBP 120m (around EUR 132m) through a share placing. The funds are intended to shore up its balance sheet.
23.07.2020 Plasteurope.com [245584-0]
Published on 23.07.2020
Polypipe: Britischer Rohrhersteller kündigt Stellenabbau anGerman version of this article...

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Date of print: 21.10.2020 23:26:26   (Ref: 10256021)
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