Last checked at 10 May 2019 07:00
10 May 2019
EUROCELL PLC
(Symbol: ECEL)
AGM Trading Update
Eurocell provides an update on its trading performance for the first four months of 2019, in advance of our Annual General Meeting being held at 12 noon today.
Trading and Operational Performance
We are pleased to report that the good start we made in the first two months of the year has continued through March and April.
We have delivered a good sales performance, albeit against weaker 2018 comparatives after bad weather in the early part of last year.
In the Profiles division, growth includes strong contributions from both existing and new accounts, arising consistently from across our base of fabricators. In Building Plastics, growth reflects strong like-for-like sales, supported by better stock availability and our new management team driving improvements in operating standards.
As planned, with customer service levels now returned to normal, we are implementing selling price increases progressively across the business in H1 2019 to recover cost inflation.
Capital Investment and Stock Build Programmes
In March, we announced a substantial capex programme to build the capacity required for future growth, including additional co-extrusion and foam lines (increasing capacity by 30% and 15% respectively) and new tooling. This investment is on track, with all of the new equipment expected to be operational by the end of Q3 as planned.
The investment to expand the recycling capacity at our Ilkeston and Ecoplas plants is underway, with efforts focused on ensuring that we leverage the most appropriate technology at each site.
In addition, given the possibility for raw material supply interruption due to Brexit, as previously reported we have invested in a stock build programme, adding approximately £3 million to finished goods for key product lines in Q1, which provides a good level of protection.
Appointment of Chief Operating Officer
In line with our continued focus on improving operations, and to support future growth, we are delighted to announce the appointment of Mark Hemming to the position of Chief Operating Officer. Mark joins us from Amazon UK, where he is currently Regional Director for Customer Fulfilment. Prior to that, Mark has experience from leading manufacturing plants in the automotive sector. He will join the business over the summer and is an excellent addition to our operational management team.
Outlook
Our focus for 2019 remains on completing the implementation of the capital investments, in order to improve manufacturing efficiency and recover margins back to target levels. We are in a strong financial position and remain confident in our ability to deliver profits for the year in line with expectations.
Notice of Results
We will announce our half year results for the six months ending 30 June 2019 on 1 August 2019.
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Notes:
Eurocell plc is a market leading, vertically integrated UK manufacturer, recycler and distributor of innovative window, door and roofline PVC products.
Enquiries:
Eurocell plc
Mark Kelly, Chief Executive Officer
+44 (0) 1773 842 105
Michael Scott, Chief Financial Officer
+44 (0) 1773 842 140
Teneo Blue Rubicon
Ben Foster
+44 (0) 20 3603 5221
Camilla Cunningham
+44 (0) 20 3757 9235
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