Eurocell plc Year End Trading Update (8923N)
26 Enero 2023 - 1:00AM
UK Regulatory
TIDMECEL
RNS Number : 8923N
Eurocell plc
26 January 2023
26 January 2023
EUROCELL PLC
("Eurocell" or the "Group")
Year End Trading Update
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
for the year ended 31 December 2022.
Trading Performance
Group sales for the year ended 31 December 2022 were GBP384
million, up 12% compared to 2021. Divisional growth rates were as
follows:
Sales growth vs 2021 6 months 6 months 12 months
to 30 June to 31 Dec to 31 Dec
2022 2022 2022
Total Group 13% 11% 12%
Profiles Division 17% 13% 15%
Building Plastics Division 11% 9% 10%
------------ ----------- -----------
Following a strong first six months of the year, new build,
large contract and RMI project work continued to be robust
throughout the second half of 2022. This was offset by the impact
of the previously reported cyber incident and a slowdown in smaller
discretionary RMI work experienced by our branch network and trade
fabricators in H2, albeit against an exceptionally strong
comparative period. After a period of very strong demand, we
believe the market is now returning to pre-pandemic norms.
Price was the driver of sales growth in 2022. Whilst we continue
to offset input cost inflation with selling price increases and
surcharges, we experienced margin pressure in the second half,
reflecting a lag on implementing some selling price increases.
However, the cost of key raw materials does now appear to be
stabilising, and in some cases beginning to fall.
Cyber Insurance Claim
As reported at the Half Year, we experienced a cyber incident
towards the end of July, which resulted in some temporary
disruption. The incident was efficiently resolved, with the
business remaining operational throughout and trading normally from
mid-August. We have now partially resolved our cyber insurance
claim and expect to recognise compensation in excess of GBP1
million as an underlying item in our 2022 financial statements,
primarily for business interruption. Work is ongoing with the
insurer to resolve the remaining aspects of the claim.
Disposal of Security Hardware
To further streamline our business, in December 2022 we sold the
trade and assets of Security Hardware, a supplier of window locks,
hardware and spares to the RMI market with annual third-party sales
of c.GBP3 million, to UAP Limited, a UK-based door hardware
supplier. Going forward, UAP will supply hardware to all our
branches.
As a result of the sale, we expect to report an overall loss
from discontinued operations in the 2022 financial statements of
c.GBP2 million. This incorporates a trading loss for the period of
c.GBP1 million (inclusive of costs incurred to prepare the business
for sale), as well as the sale proceeds and associated asset
impairments.
2022 Financial Results
Reflecting the factors described above, we expect underlying
profit before tax from continuing operations for the year ended 31
December 2022 to be in line with market expectations, with the
trading loss at Security Hardware of c.GBP1 million separately
classified within discontinued operations.
Outlook and Cost Saving Programme
We are mindful of the uncertain macro-economic background and
its impact on our markets. The Construction Product Association's
latest forecast, published in November 2022, predicts declines in
both the RMI and new build markets of 9% for 2023, before
recovering in 2024, and we have experienced some recent weakness in
those sectors.
In anticipation of weaker markets in 2023, we completed a
restructuring programme in Q4 2022, which along with other cost
saving measures, will reduce operating costs by approximately GBP5
million per annum from the start of 2023. A charge of c.GBP2
million will be included as a non-underlying item in our 2022
financial statements in respect of the programme. We also intend to
temporarily pause our branch opening programme until the economic
outlook is clearer.
However, we continue to take market share and have increased the
run rate on new fabricator account acquisitions, with our pipeline
of other potential new fabricator customers remaining healthy.
Market share gains are further supported by the impact of maturing
branches and a widening product range, all underpinned by very high
product availability and increasingly efficient operations.
Our debt is low, our balance sheet is strong and we remain
confident of continuing to outperform our markets.
Notice of Results
We expect to publish our results for the year ending 31 December
2022 on 16 March 2023, at which time we will provide further
guidance on the year ahead.
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
Camilla Cunningham +44 (0) 746 498 2426
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTKELFLXFLBBBX
(END) Dow Jones Newswires
January 26, 2023 02:00 ET (07:00 GMT)
Eurocell (LSE:ECEL)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Eurocell (LSE:ECEL)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
