Eurocell plc Year End Trading Update -- Strong Finish to 2020 (7768L)
January 15 2021 - 2:00AM
UK Regulatory
TIDMECEL
RNS Number : 7768L
Eurocell plc
15 January 2021
15 January 2021
EUROCELL PLC
("Eurocell" or the "Group")
Year End Trading Update - Strong Finish to 2020
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 2020.
Summary
The strong sales performance previously announced for the 4
months to 31 October continued through to the end of the year.
Reported Group sales for H2 were GBP164 million, up 15% on H2
2019. Group sales for the full year were GBP257 million, a
reduction of 8% on 2019. Gross margins and operating efficiencies
in H2 were in line with our expectations.
As a result of stronger than anticipated sales for November and
December, we now believe underlying profit before tax for the full
year 2020 will be ahead of current expectations.
Trading Performance
Sales growth rates in 2020 were as follows:
Sales growth H1 July Sept Nov / H2 Full
/ Aug / Oct Dec Year
------- ----
Reported
Total Group -31% 11% 15% 19% 15% -8%
Like-for-like(1)
Total Group -4% 12% 14% 21% 15% 8%
Profiles Division -14% 2% 9% 21% 10% -1%
Building Plastics
Division 3% 20% 18% 21% 19% 14%
----- ------- ------- ----
(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. 212 days to 31 December, excluding days
closed due to lockdown) with average sales per trading day in 2019
(249 days to 31 December).
The repair, maintenance and improvement (RMI) market was
stronger than we anticipated throughout the second half. House
building activity has also been increasing, supported by high
levels of mortgage approvals. Furthermore, we believe we have
continued to gain market share. The H2 like-for-like(1) sales
increase of 15% on 2019 was comprised of:
-- Profiles up 10%, including good contributions from trade
fabricators, who are substantially focused on the RMI market. New
build and commercial markets began the second half slowly, but run
rates started to improve from September
-- Building Plastics up 19%, including 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 sector supply chains
under pressure, we have continued to secure the raw materials we
require, supported by our market-leading recycling plants. These
facilities currently supply c.25% of our raw material consumption
and enhance the sustainability credentials of our business.
Net debt at 31 December 2020 on a pre-IFRS 16 basis was c.GBP10
million (31 December 2019: GBP35 million). Cash receipts from
customers have continued to be good throughout H2 and, as at 31
December 2020, substantially all our suppliers had been paid in
accordance with terms.
It remains our intention to return to paying dividends in
2021.
New Warehouse
Fit-out of our new state-of-the-art warehouse remains on track.
We achieved a major milestone earlier this month, with commercial
operations beginning successfully from the new site. In line with
our plans, transition will continue over the coming weeks, with the
final stages expected to complete in Q2. As well as being central
to increasing capacity, the new warehouse is key to delivering
anticipated improvements in operational efficiencies.
COVID-19 Update
We have maintained a good health and safety performance, with
safe working practices for COVID-19 operating well across the
business. In line with UK Government guidance, our manufacturing
plants, branch network, distribution and recycling operations all
remain open.
Notice of Results
As previously announced, we expect to publish our preliminary
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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