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Eurocell warns of full-year miss despite 'resilient' first half
(Sharecast News) - Eurocell warned on Thursday that its full-year performance would fall short of earlier expectations, citing subdued trading conditions and ongoing macroeconomic uncertainty, even as the UK window and door maker delivered a "resilient" first-half result. The London-listed company reported revenue of £193.2m for the six months ended 30 June, up 10% on last year, with adjusted operating profit rising 9% to £10.1m, supported by its March acquisition of Alunet.
However, adjusted profit before tax slipped 3% to £7.8m due to higher finance costs, while reported profit before tax halved to £3.8m after non-underlying charges.
Chief executive Darren Waters described the first-half performance as "resilient, in the context of trading conditions that remain subdued," noting that Alunet had made a strong contribution and that cost control supported profitability.
"Whilst the full year outlook is below our previous expectations, the medium and long-term growth prospects for the UK construction market remain attractive and we are well positioned to drive sustainable growth in shareholder value," he added.
Eurocell said it was continuingg to invest in expansion, opening nine new branches this year and rolling out a windows and doors sales initiative across its 216-strong network.
E-commerce sales rose 41% to £2.9m, while new product launches, including Alunet's Aluna+ aluminium window system, contributed to growth.
The group also emphasised shareholder returns, announcing £7.3m so far this year through dividends and share buybacks.
An interim dividend of 2.3p per share represents a 5% increase, while a £5m buyback launched in March was ongoing.
Despite the initiatives, Eurocell highlighted weaker demand in its core repairs, maintenance and improvement market and continued pressure from rising labour costs.
The company said it would maintain a focus on cost reduction and operational efficiency to offset delays in market recovery.
Reporting by Josh White for Sharecast.com.
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