Secondary Recommendation

Polypipe - Maker of plastic piping should benefit from housing upturn

May 2014

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

A company that makes plastic pipes for drainage and sewer systems might not immediately set pulses racing but Polypipe, which originally floated in 1986 with a market value of just £12m before eventually being taken over by IMI for a massive £337m in 1999, was a share that everyone wished they had bought. Having been sold on twice since then, Polypipe has returned to market with the latest owners, private equity group, Cavendish, placing out half their shares (and retaining 23%) in a listing on the main market at 245p, which valued the company at £490m. In a tough market the shares have climbed to 263p as investors noted its good recent record in which operating profit increased 52% from £26.2m to £39.8m in the two years to 31 December 2 ...

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Polypipe (September 2020)

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Polypipe (October 2018)

Polypipe (June 2018)

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Polypipe - Plastic piping maker on low prospective PEof 10.4 (September 2016)

Polypipe (July 2016)

Polypipe (June 2016)

Polypipe (October 2015)

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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