Last checked at 13 Jul 2022 07:00
13 July 2022
EUROCELL PLC
("Eurocell" or the "Group")
Trading Update - Good First Half and Trading in Line with Expectations
Eurocell plc, the market leading, vertically integrated UK manufacturer, recycler and distributor of innovative window, door and roofline PVC products, provides the following update for the six months ended 30 June 2022.
Trading Performance
The repair, maintenance and improvement (RMI) market remains robust, with a greater emphasis on project specific work, rather than the higher levels of maintenance activity experienced last year. A backlog in planning permissions, driven by house moves, as well as hybrid working and changing lifestyle patterns, continue to support sales, partly funded by elevated levels of consumer savings. In new build, the market continues to be strong, supported by ongoing Government initiatives.
Our sales growth rates for the six months to 30 June 2022 were as follows:
Sales growth | vs 2021 | vs 2019 |
Total Group | 13% | 40% |
Profiles Division | 17% | 39% |
Building Plastics Division | 11% | 40% |
We have kept pace with an exceptionally strong comparative period and have made substantial progress compared to the equivalent period of 2019. We continue to take effective action to offset input cost inflation, with a dynamic approach to selling price increases and surcharges. Price therefore remains a key driver of sales growth, but we believe resin costs have now plateaued.
We believe we are continuing to take market share, reflecting the impact of maturing branches, a widening product range (including our outdoor living range of fencing, decking and garden rooms) and excellent customer service, supported by our recent investments in manufacturing and warehousing capacity and technology, where operating efficiencies are improving. Our pipeline of potential new fabricator customers is strong.
As a result of these factors, and notwithstanding uncertainty over how the macroeconomic backdrop may impact future demand, we continue to trade in line with expectations.
Net debt at 30 June 2022 on a pre-IFRS 16 basis was £15 million (31 December 2021: £11 million), which includes the substantial impact of inflation on working capital.
Half Year Results
We look forward to providing a full update when we announce our half year results for the six months ending 30 June 2022 on 1 September 2022.
Enquiries:
Eurocell plc |
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Mark Kelly, Chief Executive Officer | +44 (0) 1773 842 105 |
Michael Scott, Chief Financial Officer | +44 (0) 1773 842 140 |
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Teneo |
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Ben Foster | +44 (0) 777 624 0806 |
Camilla Cunningham | +44 (0) 746 498 2426 |
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