1st Aug 2019 13:08
(Alliance News) - Plastic windows and doors maker Eurocell PLC boosted its interim dividend Thursday after revenue rose despite profit suffering as costs jumped amid acquisition and new store opening costs.
For the six months ended June, pretax profit narrowed 1.0% to to GBP10.4 million from GBP10.5 million the year prior. This was despite revenue rising 15% to GBP136.3 million from GBP118.8 million the year before.
Profit performance was hurt by a rise in costs to GBP58.4 million from GBP48.7 million the year prior. This was primarily due to acquisition costs and the opening of three new branches which combined with wage increases.
"We have reported robust financial results for the first half and delivered another period of strong sales growth, albeit against weaker comparatives after bad weather in the early part of 2018," Eurocell Chief Executive Officer Mark Kelly said.
Eurocell proposed a 3.2 pence per share interim dividend, up 3% from 3.1p the year prior.
"We have made good progress with our plans to improve operations," Kelly added. "These include strengthening operational teams and implementing a substantial capital investment programme to increase production capacity. Our focus for 2019 remains on delivering further improvements in operating efficiency as these plans progress through the second half."
"As a result, whilst we are mindful of macroeconomic and political uncertainty, our expectations for the full year are unchanged", Kelly continued.
Shares in Eurocell were 3.3% lower at 204.04 pence in London on Thursday.
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