Eurocell, the Derbyshire manufacturer, recycler and distributor of PVC window, door and roofline products, has seen a dip in revenue while pre-tax profits have risen in the six months ending 30 June 2024.
Adjusted profit before tax of £8m was up 33% from the same period of last year, on lower sales, driven by proactive gross margin management and reduced input costs.
Revenue, meanwhile, was down 5% on the first half of 2023 at £175.7m, with subdued repair, maintenance and improvement activity and a continuing weak new build housing market.
Darren Waters, Chief Executive of Eurocell plc, said: “Trading conditions continue to be tough in 2024, with ongoing macroeconomic uncertainty impacting our key markets, exacerbated by wet weather and the General Election. Customers remain cautious, resulting in lower investment in home improvements and subdued activity levels in the residential construction market. As a result, H1 sales were 5% below H1 2023.
“However, first half adjusted profit before tax was up 33% on H1 2023, as we continue to proactively manage our gross margin and cost base, which has supported a reduction in input cost pricing, and our expectations for the full year remain unchanged.
“Earlier this year we launched our new strategy, which identified a pathway to building a £500 million revenue business, generating a 10% operating margin, over a five-year period. We have good early momentum with our new strategic initiatives and are becoming increasingly confident that, whilst this is an ambitious target, it is achievable.
“The UK construction market continues to have attractive medium and long-term growth prospects, driven by the structural deficit in new build housing and an ageing housing stock that requires increased repair and maintenance. Overall, we believe the progression of our strategy, together with the actions we have taken on cost and cash flow over the last eighteen months, leave the business well positioned to drive sustainable growth in shareholder value.”
