Eurocell plc, a leading UK manufacturer, distributor, and recycler of UPVC building products, released its Year-End Trading Update on January 28, 2025. The company reported a 5% decrease in revenue for the year, attributing the decline to challenging market conditions, including subdued Repair, Maintenance, and Improvement (RMI) activity and a weak residential construction sector.
Despite the drop in revenue, Eurocell achieved a 33% increase in adjusted profit before tax. This improvement was driven by proactive gross margin management and reduced input costs. The company also highlighted a 5% increase in net cash from operating activities, reflecting a continued focus on working capital management.
In line with its strategy to enhance shareholder returns, Eurocell completed a £10 million share buyback program in the first half of the year and initiated an additional £5 million buyback. The interim dividend was raised by 10% to 2.2 pence per share.
Looking ahead, Eurocell remains committed to its growth strategy, aiming to build a £500 million revenue business with a 10% operating margin. The company plans to open new branches and relocate existing ones to optimize its network. It also intends to accelerate the rollout of its windows and doors initiative to approximately 100 branches by year-end, capitalizing on the opportunity to increase sales to installers through its UK branch network.
While acknowledging the ongoing challenging trading environment, Eurocell’s leadership expressed confidence in the company’s strategic direction and its positioning for future market recovery.
Read the press release here: https://investors.eurocell.co.uk/media/1498/eurocell-trading-update-28-january-2025.pdf
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