Eurocell saw like-for-like sales up 6% for 2020 despite a 31% drop in lockdown-hit H1, resulting in an overall 8% drop in revenue from £279.1m to £257.9m, according to its 2020 results.
The group announced it has substantially completed a major investment in a new 260,000 sq. ft. warehouse and head office facility which, the company says, alongside recent manufacturing capacity expansion, ensures Eurocell can service customers efficiently and meet growing demand.
The group’s use of recycled materials increased to 25 per cent of total consumption in 2020, up 2% from 2019 and more than three times the level achieved in 2015.
Chief Executive Officer, Mark Kelly said in summary: “Covid-19 has created unprecedented challenges. Our first priority continues to be the health, safety and well-being of our employees. Through their hard work and dedication, we have implemented safe working practices in line with recommended guidelines, and I would like to thank them all again for their continued commitment and support. “In response to the pandemic, we took a number of decisive actions to safeguard our future and ensure the business was well-placed to capitalise on opportunities as markets developed.
“The repair, maintenance and improvement (‘RMI’) market was stronger than we anticipated throughout the second half. Sales exceeded our expectations, particularly in the branch network, operating efficiencies were good and gross margins improved as volumes increased. As a result, we were very pleased to report strong profit growth for H2.
“Our focus now includes completing the warehouse transition successfully, thereby facilitating future growth and the delivery of anticipated operating efficiencies. Whilst the current levels of uncertainty mean it is difficult to predict the outcome for the year, 2021 has started well with sales to the end of February up 8% on 2020 and it remains our intention to return to paying dividends this year. We continue to see good potential to outperform our markets, take share and deliver further progress.”