Eurocell plc Year End Trading Update (1611Z)
21 Enero 2022 - 1:00AM
UK Regulatory
TIDMECEL
RNS Number : 1611Z
Eurocell plc
21 January 2022
21 January 2022
EUROCELL PLC
("Eurocell" or the "Group")
Year End Trading Update - Positive Finish to 2021, Strong
Platform for 2022
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
year ended 31 December 2021.
Summary
The strong sales performance previously announced for the ten
months to 31 October continued through to the end of the year,
supported by good underlying demand in our markets. We have taken
effective action to mitigate ongoing cost inflation and supply
chain pressures. As a result, we now believe profit before tax for
the full year will be slightly ahead of current market
expectations(1) .
Trading Performance
Group sales for the six months to 31 December were up 23%
compared to 2019 and 7% compared to 2020, with the latter
reflecting a very strong second half in that year. For the year
ended 31 December 2021, sales were GBP343 million, up 23% compared
to 2019 and 33% compared to 2020. Divisional growth rates were as
follows:
Sales growth 6 months 12 months 6 months 12 months
to 31 Dec to 31 to 31 Dec to 31
2021 Dec 2021 2021 Dec 2021
------------------- ----------- ---------- ----------
vs 2019 vs 2020
------------------- ----------------------- -----------------------
Total Group 23% 23% 7% 33%
Profiles Division 24% 22% 14% 41%
Building Plastics
Division 21% 24% 2% 28%
------------------- ----------- ---------- ----------- ----------
Whilst demand in the repair, maintenance and improvement (RMI)
market has moderated from the unprecedented levels experienced in
H2 2020 and H1 2021, this sector remains strong and customer demand
levels are good going into 2022. We believe we are also continuing
to take market share.
Group sales growth for the year ended 31 December of 23%
compared to 2019 includes:
-- Profiles up 22% - good contributions from trade fabricators,
who are substantially focused on the RMI market, and another very
strong performance from Vista doors. New build enjoyed improved
sales in the second half, as the house builders focused on
achieving year end completion targets
-- Building Plastics up 24% - good performance across our full
range of own-manufactured products and traded goods, including more
than 150% growth in outdoor living products, supported by a
consistently strong order book. We opened 12 new branches in the
year, 4 of which are the new larger format, taking the total estate
to 219 sites
We have continued to secure the raw materials we require and we
expect past constraints to ease over the coming months. We have
mitigated raw material cost inflation with selling price increases
and surcharges, with price inflation becoming a larger component of
sales growth as the year progressed. We are also pleased to report
that the actions we took in H2 2021 to secure more labour have
ensured that we have the staff necessary to operate efficiently and
support our growth aspirations.
Our market-leading recycling plants supported continuity of
supply of resin in tight markets, whilst continuing to improve the
proportion of recycled material used in our primary extrusion
operations. These plants supplied 27% of our raw material
consumption for the year (2020: 25%), driving significant cost and
carbon savings compared to the use of virgin material.
Net debt at 31 December 2021 on a pre-IFRS 16 basis was c.GBP11
million (31 December 2020: GBP10 million), which includes the
substantial impact of inflation on the components of working
capital.
New Warehouse and Manufacturing Capacity Expansion
As previously reported, fit-out of our new state-of-the-art
warehouse is now complete. As well as being central to increasing
capacity, the facility is key to delivering further improvements in
operational efficiencies as the new plant, systems and processes
become embedded, and we are optimistic that operating performance
will exceed our original expectations.
The 2021 manufacturing capacity expansion, including 5 new
extrusion lines, together with the associated mixing plant upgrade
and tooling, is also now complete. We plan to add a further 5 lines
in 2022. Together, these investments increase extrusion capacity by
more than 15%, thereby enabling future sales and market share
growth.
Notice of Results
As previously announced, we expect to publish our results for
the year ended 31 December 2021 on 18 March 2022.
Notes
(1) Eurocell calculated analyst consensus profit before tax forecast for 2021 of GBP26.5 million.
Enquiries:
Mark Kelly, Chief Executive +44 (0) 1773 842
Officer 105
Michael Scott, Chief Financial +44 (0) 1773 842
Officer 140
+44 (0) 777 624
Ben Foster (Teneo) 0806
END
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