28th Jan 2025 12:25
(Alliance News) - Eurocell PLC on Tuesday noted challenging macroeconomic conditions, citing increases in national insurance contributions for employers in the UK and weak consumer confidence.
The Alfreton, England-based manufacturer, recycler and distributor of window, door and roofline PVC products said trading conditions in key markets remain "subdued".
"We are experiencing competitive pressure on selling prices in the branches, as well as overhead cost inflation across the business," Eurocell said.
Tough market conditions were compounded by October's UK government budget, hitting activity in the repair, maintenance & improvement and new build housing markets.
Further, the company noted high interest rates, but said it was making good progress with the early stages of its five-year strategy.
Eurocell expects underlying pretax profit for 2024 to be in line with market expectations. Sales for 2024 are expected to have fallen 1.8% to GBP358 million from GBP364.5 million it had reported for 2023.
The company said the hike in employers' national insurance and the national living wage in the UK will put additional costs of GBP3 million per year on the company.
It plans to offset this through selling price hikes "and other management actions, including cost reduction".
In addition, Eurocell named Stuart Livingstone as chief operating officer.
The company will release its 2024 results on March 20.
Eurocell shares fell 4.0% to 151.67 pence each on Tuesday afternoon in London.
By Tom Budszus, Alliance News slot editor
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