Eurocell plc reports a strong finish to 2020 with higher than expected November and December sales adding to its previously announced good performance in the four months prior.
The group reports sales for H2 were £164 million, up 15% on H2 2019, while group sales for the full year were 8% down YoY at £257 million.
As a result of stronger than anticipated sales for November and December, the group expects underlying profit before tax for the full year 2020 to be ahead of current expectations.
The group reports: “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 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.”
“Fit-out of our new state-of-the-art warehouse remains on track,” the group adds, “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.”