Eurocell plc, the manufacturer, distributor and recycler of window, door and roofline PVC products, has seen a slip in its revenue and pre-tax profits.
According to preliminary results for the year ended 31 December 2023, profit before tax stood at £11.7m, down from £26.2m in 2022. This was, however, in line with expectations.
Revenue, meanwhile, declined from £381.2m in 2022 to £364.5m.
This came against a challenging backdrop, as noted by Eurocell, with a weak repair, maintenance and improvement (RMI) market and particularly severe decline in new build housing.
Darren Waters, Chief Executive of Eurocell plc, said: “The trends reported at our half year results in September continued for the remainder of 2023, with some further modest weakening in our key markets. Against this challenging backdrop, we are pleased to report profits for the year in line with expectations and strong cash flow generation.
“We took early and decisive action on costs in response to lower volumes and have continued to focus on efficient working capital management, driving a good cash flow performance. Whilst the near-term outlook for our markets remains challenging, these actions leave us well placed to benefit from a market recovery when it comes.
“Our review of strategy is now complete and I am very pleased with the outcome. Looking ahead, we have identified a clear pathway to building a £500m revenue business, generating a 10% operating margin over a five-year period, built around four pillars; Customer Growth, Business Effectiveness, People First and ESG Leadership.
“This is an ambitious vision, but when we aggregate the growth opportunities, and apply a degree of sensitivity, we believe it is an achievable target, with the potential to create significant shareholder value.”
