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Piping systems manufacturer Polypipe posted a steep drop in first-half profit and scrapped its interim dividend citing softer trading amid the Covid-19 pandemic.
Pre-tax profit for the six months through June slumped 93% to £2.3m, down from £31.4m on-year, as revenue dropped 22% to £173.6m.
Polypipe said overall trading had been 'resilient' and that there had been a progressive improvement from April's low point revenue of 66% below prior year.
June revenue was 19% down with an improving trend into July and August, during which revenue was down 6% and 3%, respectively.
Polypipe said it had made 104 positions redundant, which was significantly fewer than the 250 at risk positions announced in July. All other employees had now returned to work.
The company said its performance in July and August meant it was tracking well-ahead of the operating scenario set out at the time of its equity raise in May.
'While the board is mindful of the risks to the overall pace and sustainability of the economic recovery, it is encouraged by the trading performance so far and is confident in the group's position as markets continue to recover' it added.
Polpypipe said it would consider paying a final dividend for 2020 in May 2021 subject to continued performance ahead of the operating scenario set out in May.