TIDMECEL
RNS Number : 2406L
Eurocell plc
12 May 2022
12 May 2022
EUROCELL PLC
("Eurocell" or the "Group")
AGM Trading Update and Board Update - 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
first four months of 2022, in advance of the Annual General Meeting
later today.
Trading Performance
We have made a positive start to the year, supported by good
underlying demand in our markets. Sales growth rates for the four
months to 30 April 2022 were as follows:
Sales growth vs 2021 vs 2019
Total Group 13% 39%
Profiles Division 18% 38%
Building Plastics Division 10% 39%
-------- --------
The repair, maintenance and improvement (RMI) market remains
robust and we have kept pace with an exceptionally strong
comparative period. Current indications are that RMI demand
includes a greater emphasis on project specific work, rather than
the higher levels of maintenance activity experienced last year. We
believe we are continuing to take market share and have made
substantial progress compared to the equivalent period of 2019.
Sales growth to 30 April compared to 2021 includes:
-- Profiles - a good start in new build, where competitor
fabricator weakness has supported our sales. Mortgages
remain affordable and wage growth assists increased mortgage
capacity. Vista doors has also reported another very strong
performance
-- Building Plastics - good demand for high value project
work (such as our roof lanterns, conservatory roofs and
bi-fold doors) and our outdoor living range (fencing, decking
and garden rooms), where sales are being supported by elevated
levels of consumer savings and changing lifestyle patterns,
such as hybrid working
We continue to take effective action to offset ongoing 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.
Higher resin costs are also partially offset by our
market-leading recycling plants. So far this year, these plants
have supplied 27% of our raw material consumption (full year 2021:
27%), driving significant cost and carbon savings compared to the
use of virgin material.
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.
Reflecting the impact of COVID-19 on the RMI market, as well as
supply chain disruption in the second half last year, 2021 sales
volume and profit generation was weighted towards H1. We anticipate
a more balanced result this year.
Refinancing
In May, we completed a refinancing of our GBP75 million
unsecured, sustainable revolving credit facility. The new facility
is competitively priced, with key terms unchanged from the existing
arrangements. In terms of sustainability, modest adjustments to the
margin will be applied based on our achievement against ambitious
annual recycling, emissions, and waste reduction targets. The
facility matures in 2026 and includes an option to extend for an
additional year.
Chair Designate Appointment
Following a comprehensive search process, led by our Senior
Independent Non-executive Director Frank Nelson, we are delighted
to announce that the Board has appointed Derek Mapp as an
independent Non-executive Director and Chair Designate of the
Board, with effect from 16 May 2022. Derek will also become a
member of the Nomination and Remuneration Committees from this
date.
Following a handover period, Derek will assume the role of Chair
of the Board, and Chair of the Nomination Committee from 1 July
2022, at which point Bob Lawson will retire.
Derek is an experienced Chair and brings a wealth of commercial
and operational knowledge to the Group. He is currently the
Non-executive Chair of Mitie Group plc. Previously, he was Chair of
Informa plc from March 2008 until June 2021 and Chair of Huntsworth
plc from December 2014 to March 2019. Prior to that, Derek was
Chief Executive Officer of Tom Cobleigh plc, Chair of East Midlands
Development Agency and Sport England. He has also served on a
number of Government agencies and boards.
Mark Kelly, Chief Executive Officer, said:
"On behalf of the Board, I would like to thank Bob for his
tremendous contribution to the development of Eurocell since our
IPO in 2015 and for his valuable counsel and support throughout
that period. We are delighted that Derek has accepted our
invitation to join the Board and I am looking forward to working
closely with him."
This announcement is made pursuant to LR 9.6.11R(3) of the
Listing Rules and there are no further matters required by
paragraphs 9.6.13R (1) to (6) of the Listing Rules to be disclosed
in relation to Derek Mapp.
Enquiries:
Eurocell plc
Mark Kelly, Chief Executive Officer +44 (0) 1773 842 105
Michael Scott, Chief Financial Officer +44 (0) 1773 842 140
Teneo
Ben Foster +44 (0) 777 624 0806
END
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May 12, 2022 02:02 ET (06:02 GMT)
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