Last checked at 13 Dec 2017 07:00
13 December 2017
EUROCELL PLC
(Symbol: ECEL)
Trading Update
Eurocell provides an update on its trading performance for the 11 months to 30 November 2017.
Trading and Operational Performance
Trading in the second half has been solid and our expectations for the full year are in line with consensus forecasts.
We continue to deliver good sales growth, particularly in new build, despite an RMI market that remains subdued.
In the Profiles division, we continue to build our prospect pipeline. Sales have started to come through from the customers who have recently moved onto our product systems, with more new accounts contracted for next year.
In the Building Plastics division, trading in the expanding branch network is robust, albeit like for like growth rates are slightly below the first half.
We continue to mitigate the increasing cost inflation we are seeing for resin, other raw materials and traded goods through selling price increases; however there remains a time lag in capturing the benefit. We continue to manage our underlying operating costs tightly, whilst progressing further our strategic priorities and investing in business expansion.
We have made good progress with our key strategic initiatives, which include:
· Recycling - use of recycled material in manufactured products increased as anticipated. Expected to be at 17% by year end (2016: 14%)
· Branch network - 31 new branches in 2017, with 16 new sites in the second half, resulting in a total estate of 190 branches by year end
· Acquisitions - integration of Security Hardware now complete
Overall, whilst the trading environment remains challenging, we are delivering successfully on our strategy and taking market share.
Notice of Results
We will announce our preliminary results for the year ending 31 December 2017 on 9 March 2018.
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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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