Eurocell plc Trading Update -- Improved Outlook (4971F)
November 17 2020 - 2:00AM
UK Regulatory
TIDMECEL
RNS Number : 4971F
Eurocell plc
17 November 2020
17 November 2020
EUROCELL PLC
("Eurocell" or the "Group")
Trading Update - Improved Outlook
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 10
months to 31 October 2020.
Trading and Operational Performance
We are pleased to report that the strong sales performance for
July and August announced with our Half Year results has
continued.
Sales growth H1 July / Sept / H2 YTD
Aug Oct to 31 to 31
Oct Oct
------- -------
Reported
Total Group -31% 11% 15% 13% -12%
Like-for-like(1)
Total Group -4% 12% 14% 13% 5%
Profiles Division -14% 2% 9% 6% -4%
Building Plastics
Division 3% 20% 18% 19% 12%
----- ------- ------- ------- -------
(1) Like-for-like excludes acquisitions and new branches opened
in 2019/20, and is calculated by comparing average sales per
trading day in 2020 (i.e. 177 days to 31 October, excluding days
closed due to lockdown) with average sales per trading day in 2019
(212 days to 31 October).
The repair, maintenance and improvement (RMI) market has been
stronger than we anticipated when announcing our Half Year results
in September, with housing market activity also now increasing,
supported by high levels of mortgage approvals. Furthermore, we
believe we are also taking market share. As a result, H2
like-for-like(1) sales to 31 October are up 13% on 2019.
-- Profiles up 6% includes good contributions from trade
fabricators, who are substantially focused on the RMI market. New
build started the second half slowly, but run rates are also now
improving
-- Building Plastics up 19% includes a strong performance across
our range of own-manufactured products and traded goods, as well as
an excellent start for our new range of outdoor living products
Whilst strong demand in our markets has put supply chains under
pressure, we have secured the raw materials we require to close out
the year. We are seeing increased prices for PVC resin, albeit
partially mitigated by our market-leading recycling plants, which
are performing well. Gross margins and operating efficiencies in H2
have been good.
Fit-out of our new state-of-the-art warehouse remains on track
and we continue to target being operational early in 2021. As well
as being key to increasing capacity, the new warehouse will deliver
improved operational efficiencies in 2021 and beyond.
Outlook
We have so far seen no discernible impact from the recent
tightening of COVID-related restrictions, including the second
national lockdown imposed from 5 November. Our manufacturing
plants, branch network, distribution and recycling operations all
remain open, in line with UK Government guidance. Subject to no
significant further adverse impacts from COVID, we now expect
underlying profit before tax for the full year to be ahead of
current expectations.
We expect the improved outlook to drive lower net debt. We have
a strong balance sheet, good liquidity and significant headroom on
our bank facility, leaving us well-placed to capitalise on
opportunities as markets develop. It remains our intention to
return to paying dividends in 2021.
Finally, we have maintained a good health and safety
performance, with safe working practices for COVID-19 operating
well across the business.
Notice of Results
We expect to publish our results for the year ending 31 December
2020 on 11 March 2021.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
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) 7464 982 426
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