16th Mar 2016 08:43
LONDON (Alliance News) - PVC window, door and roofline products manufacturer Eurocell PLC on Wednesday delivered higher pretax profit in 2015 as an improvement in margins gave leverage to a small increase in revenue.
Eurocell said pretax profit for the year to the end of December rose to GBP19.7 million from GBP16.7 million, up 18% on 2014 as gross margin improved to 51.7% from 48.3% a year earlier thanks to better manufacturing performance, stronger procurement practices, an increased use of recycled materials and lower raw material prices.
Revenue grew 1.7% to GBP175.9 million in 2015 from GBP173.1 million, held back by a slowdown in the UK's repair, maintenance and improvement market, though sales of Eurocell's own products increased and it said the injection moulding business it acquired in July is performing well.
Eurocell will pay a final dividend of 5.2 pence, taking its total payout to 7.9p. It did not pay a dividend the year before, having listed in London in March 2015.
"I am delighted to report a strong performance for our first full set of results as a listed company. Notwithstanding market conditions that have remained challenging throughout the year, we have reported higher revenues and, as a result of the cost and efficiency measures we have taken, profits that are well ahead of last year," said Chairman Bob Lawson.
"Looking forward, the new financial year has started positively. Whilst we are not anticipating a significant improvement in the markets we serve in the near term, we believe that our strategy combined with the proven capabilities of the company will enable Eurocell to continue to deliver significant value to customers and shareholders in the current year and beyond," he added.
Eurocell shares were down 0.1% to 179.90 pence on Wednesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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