Eurocell ‘strong’ despite raw materials costs
20th March 2018

Eurocell PLC has reported a year of ‘strong performance’ though profitability was hit by higher raw materials costs as well as a subdued market for repair, maintenance and improvements.

Sales grew 10% to £224.9million (8% excluding acquisitions). Pre-tax profit fell by 1% to £23.7million “though on an adjusted basis the figure rose by 1% to GBP24.5 million,” the report adds.

On the trade counter side, Eurocell opened 31 new branches in 2017, as against 18 the previous year, giving it a total estate of 190 sites.

Use of recycled material rose from 14% to 17% on the previous year.

Chief Executive Mark Kelly said: "I am pleased to report a strong performance for Eurocell in 2017. We have made excellent progress with our strategic priorities, continued to invest significantly in the growth of our business and made further gains in market share.

"Profit was impacted by raw material cost inflation and a subdued RMI market, especially in the second half. However, the benefits of our differentiated business model are becoming increasingly evident. I expect the investments we are making to deliver further gains in market share and allow Eurocell to take more control of material costs in the future.
"Looking ahead, our focus for 2018 will be on optimising our existing branch network and expanding further our recycling capability. Whilst our markets remain challenging and raw material price inflation continues, we are in a strong financial position and sales for the first two months of the year have been in line with our expectations."