15th Mar 2019 10:17
LONDON (Alliance News) - Window and doors manufacturer Eurocell PLC on Friday reported a drop in its annual profit despite revenue rising 13%.
For 2018, the company posted pretax profit of GBP22.1 million, 7% lower than GBP23.7 million a year ago. This drop was due to higher administrative costs which jumped to GBP84.2 million from GBP73.2 million.
Revenue meanwhile rose to GBP253.7 million from GBP224.9 million.
Chief Executive Officer Mark Kelly said: "We made good progress with our strategic priorities in 2018, delivering further gains in market share and continued investment in the growth of our business, both organically and through acquisitions.
"Strong sales growth exceeded our manufacturing capacity, both in terms of volume and mix. This challenged our production and distribution activities, impacting on manufacturing efficiency in the short-term.
"We implemented mitigating actions in response to increased demand and to preserve customer service and we are pleased with the results."
Hge added: "As a result of these actions, we are now well on track to build the capacity required for future growth, much earlier than previously planned."
Eurocell proposed a final 6.2 pence per share dividend. Added to the interim payout of 3.1p, made up for a full-year dividend of 9.3p, 3% higher than the prior year's 9.0p.
Looking ahead Kelly added that the company made a "good start" to 2019, with sales and margins in line with expectations. Eurocell remains confident for its annual outlook.
Eurocell shares were trading up 1.3% at 237.00p each on Friday morning.
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