2nd Aug 2018 12:57
LONDON (Alliance News) - Eurocell PLC on Thursday said it expects to report annual results in line with expectations, despite profit decreasing 2.8% in the first half of 2018.
The PVC products supplier said pretax profit slipped to GBP10.5 million in the six months to the end of June from GBP10.8 million reported a year earlier, despite revenue growing by 10% to GBP118.8 million from GBP108.1 million.
During the period, Eurocell said it manufactured 23,300 tonnes of rigid and foam PVC profiles, up 5.0% year-on-year from 22,200 tonnes, due to a sharp uplift in demand in the second quarter.
The company said it used 4,300 tonnes of recycled PVC compound alongside virgin resin in the manufacture of co-extruded rigid profiles. This represents 17% of overall material consumption, up 15% from 3,700 tonnes used the year before.
Eurocell invested GBP1.8 million in its recycling facility in Ilkeston in the first-half of 2018 to boost usage of recycled materials in its primary extrusion processes. With further investment in the Ilkeston site for 2018 on track, the company said it expects usage to increase to 10,000 tonnes in 2018, representing 20% of material consumption.
The Profiles division generated revenue of GBP74.1 million in the period, up 8.7% from GBP68.2 million a year prior, supported by continued good growth in the private new build sector, where sales were up approximately 8% in the first half of 2018.
The Building Plastics unit revenue totalled GBP68.3 million, up 11% from GBP61.8 million reported the year before, helped by new branch openings and acquisition of Security Hardware in February last year.
Eurocell declared an interim dividend of 3.1 pence per share, up 3.3% year-on-year.
"We made good progress with our strategic priorities in the first half and continued to invest in the growth of our business," said Chief Executive Mark Kelly.
"We are in a strong financial position and, notwithstanding the impact of difficult weather conditions in the first four months, look forward to delivering another year of good progress, in line with our expectations," added Kelly.
Shares in Eurocell were trading 3.2% higher on Thursday at 260.00 pence each.
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