REG - Eurocell plc - Trading Update

EurocellAnnouncement

Today 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250515:nRSO7225Ia&default-theme=true

RNS Number : 7225I  Eurocell plc  15 May 2025

15 May 2025

EUROCELL PLC

("Eurocell" the "Group" or the "Company")

Trading Update

 

Eurocell plc, the market leading, vertically integrated UK manufacturer,
distributor and recycler of innovative window, door and roofline products,
provides the following update for the first four months of 2025, in advance of
the Annual General Meeting ("AGM") later today.

 

Summary

Trading conditions in our key markets have been mixed. There are some signs of
an improving picture in new build housing, but we are still experiencing lower
than expected demand in our core RMI market. We therefore continue to focus on
further cost reduction and operational improvements to drive more efficiencies
and mitigate against the impact of delayed market recovery.

 

We are making good progress with the execution of our growth strategy and are
pleased to see this coming through in the sales performance of our key
initiatives.

 

As we consider the outlook for the remainder of the year, recognising the
potential adverse impact of macroeconomic conditions on volumes, particularly
RMI, we now expect adjusted profit before tax for the year in the core
business to show nominal improvement over 2024, before any impact from the
Alunet acquisition. We expect Alunet to deliver a net increase in the Group's
adjusted profits in line with our plans, reflecting strong market share gains
already achieved this year.

 

Our balance sheet is strong and the actions we have taken, including those on
costs and cash flow, position us well to benefit when our end markets fully
recover.

 

Trading Performance

Excluding Alunet, Group sales for the four months to 30 April 2025 were
level((1)) with 2024, with volume down 1%. Including Alunet, Group sales were
up 8%((1)). Comparisons by division were:

 

 Sales to 30 April 2025         vs 2024((1))
 Profiles Division              +1%
 Branch Network Division        Level
 Group, excluding Alunet        Level
 Total Group, including Alunet  +8%

(1)    On a trading day adjusted basis

 

Profiles - sales up 1%, with volume down 2%, reflecting reduced RMI activity
through our trade fabricators, partially offset by some modest improvement in
the new build housing market.

 

Branch Network - sales level with 2024, with volume down 1%, reflecting:

 •    Underlying Branch Network sales to the RMI market down 4%
 •    Offset by the benefits of progress with our strategic initiatives for window
      and door sales (up 7%), garden rooms (up 29%) and e-commerce activity (up
      51%), with the contribution to date from new branches not yet material

 

We opened two new branches at the end of last year, plus a further four so far
in 2025, with three more to come in the first half. Together with three
relocations already completed this year, this creates a short-term drag, but
enables longer-term profit improvement.

 

Alunet - market share gains driving strong sales growth in line with our
plans:

 •    Alunet Systems secured new business with nine Eurocell fabricators,
      successfully launched the new Aluna+ aluminium window system in April, with
      the new Iconiq aluminium roof lantern launch planned for June. As a result, we
      anticipate that sales will continue to build in H2
 •    Comp Door has continued to acquire new installers. The new Sleekskin door has
      been well received by the trade and we expect the business to benefit from
      cross-selling opportunities and supply chain synergies with Vista

 

Input cost prices have remained stable, including electricity (where we
operate a rolling 12-month forward hedging policy for the majority of our
requirements), recycling feedstock, and PVC resin.

 

We continue to see inflation elsewhere, particularly labour costs, which
include the increases to employers' National Insurance and the National Living
Wage from April 2025.

 

In order to offset this inflation, we have implemented selling price increases
and taken other management actions, including cost reductions. The branch
network restructuring announced with our preliminary results in March is now
complete, generating annualised savings of c.£2 million. In addition, we have
now identified further overhead cost reductions to be realised in 2025 of
c.£2 million.

 

Capital Allocation

In line with our strategy, significant investments in the next 12 months
include delivering the project to modernise our IT infrastructure, which
remains on track, and further new branch openings.

 

We are committed to driving shareholder returns through a combination of a
progressive ordinary dividend and supplementary distributions (currently via
share buybacks) where appropriate, whilst always seeking to maintain a strong
financial position.

 

Good cash flow management underpinned the successful delivery of a £15
million share buyback programme substantially in 2024. The new £5 million
share buyback announced on 20 March 2025 has progressed well. As of 14 May
2025, we had purchased approximately 0.9 million ordinary shares at a cash
cost of £1.4 million and we expect to complete this buyback during the second
half.

 

 

This announcement contains inside information for the purpose of the
assimilated Market Abuse Regulation (EU) 596/2014 as it forms part of the law
of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018,
as amended.

 

Enquiries:

Eurocell plc

Darren Waters, Chief Executive Officer
                        +44 (0) 1773 842 105

Michael Scott, Chief Financial Officer
                        +44 (0) 1773 842 140

Teneo

Nick de
Bunsen
                        +44 (0) 7825 575 258

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTBLGDUXUBDGUS