Last checked at 21 Jan 2016 07:00
21 January 2016
Eurocell plc
Trading Update
Eurocell plc ("Eurocell" or the "Company"), the leading B2B, single brand supplier of PVC building products with its own distribution network announces a trading update for the 26 weeks ended 31st December 2015, in advance of its preliminary results announcement scheduled for Wednesday 16th March 2016.
The Company has continued to trade well with revenue for the second half expected to be £93.2 million, an increase of 3.6% on the previous year (H2 2014: £90.0 million), with revenues for the full year of £175.8 million, an increase of 1.6% (FY 2014: £173.1 million).
Despite the widely reported challenges in the UK RMI market, Eurocell showed positive revenue growth in its branch network of 3.9% v the same period in 2014. The Company continues to drive its branch expansion strategy with a further 13 additional Branches opened in 2015, taking the total to 141 at year end. To continue to support the future growth of the branch network, the company has invested further in improved support services during 2015, including a new management layer, increased technical sales staff and relief managers.
In addition to this the Company continues to improve gross margin through improvement in operating efficiencies and the further use of post-consumer recycling.
The Company expects profits to be within market expectations for the full year, with net debt of £26m at 31st December 2015.
Patrick Bateman, Chief Executive Officer, said "I am pleased with the outcome for the year, in which we have continued to grow revenue and profitability. The company will continue expanding its profitable branch network while bringing new products and materials to market. In addition the ongoing investment in our recycling operations to maintain our class leading gross margins and sustainable service to clients remains central to our strategy. Looking forward to this year, this strategy will be supported by ongoing bolt on acquisitions where the board feels such initiatives will further enhance Eurocell's integrated approach"