UK's Eurocell H1 revenue rises 6% on Alunet acquisition
UK's Eurocell H1 revenue rises 6% on Alunet acquisition
Overview
UK door and window maker's H1 revenue rose 6% yr/yr, driven by Alunet acquisition
Adjusted operating profit for H1 increased 10% yr/yr, supported by Alunet and cost control
Company implemented restructuring, including branch closures and headcount reduction, to improve profitability
Outlook
Eurocell says Q2 sales momentum has continued into H2 and expects further progress in 2026
Company says demand in RMI market remains subdued and new build housing conditions are challenging
Eurocell has paused new branch openings until there is better economic visibility
Result Drivers
ALUNET CONTRIBUTION - Alunet acquisition drove revenue and adjusted operating profit growth, with H1 sales up 13% yr/yr on a calendar basis due to market share gains
RESTRUCTURING ACTIONS - Co implemented branch closures, recycling plant consolidation and targeted headcount reduction to increase profitability
SUBDUED DEMAND - Weak trading conditions in RMI and new build housing weighed on organic sales, with Profiles division sales down 5% yr/yr
Company press release: ID:nRSC1798Ta
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| GBP 205.20 mln |
|
H1 Adjusted EBIT |
| GBP 11.10 mln |
|
H1 Adjusted Pretax Profit |
| GBP 8.20 mln |
|
H1 EBIT |
| GBP 1.70 mln |
|
H1 Pretax Loss |
| GBP 1.40 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction supplies & fixtures peer group is "buy."
Wall Street's median 12-month price target for Eurocell PLC is GBp205.00, about 66% above its September 2 closing price of GBp123.50
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 6 three months ago
Reuters Recommended Reads
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Sept 2 - Bond selloff deepens as oil prices and public debt fears jolt markets
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)