20th Mar 2024 14:25
(Alliance News) - Eurocell PLC on Wednesday said its near-term outlook remained challenging as it noted weaker build activity and a softer repair, maintenance & improvement market.
Eurocell is an Alfreton, England-based manufacturer, recycler and distributor of window, door and roofline PVC products.
Eurocell said pretax profit dived 55% to GBP11.7 million in 2023 from GBP26.2 million in 2022.
Revenue edged down 4.4% to GBP364.5 million from GBP381.2 million. Eurocell cited a weak repair, maintenance & improvement market amid "significantly weaker new build activity" which was partially offset by a benefit of market share gains.
The company proposed a final dividend of 3.5 pence per share, slashed into half from 7.2p a year prior, bringing the total dividend for 2023 to 5.5p, down 49% from 10.7p paid for in 2022.
More positively, net debt as at December 31 narrowed 25% to GBP58.2 million from GBP78.1 million a year ago.
Chief Executive Officer Darren Waters said: "We took early and decisive action on costs in response to lower volumes and have continued to focus on efficient working capital management, driving a good cash flow performance. Whilst the near-term outlook for our markets remains challenging, these actions leave us well placed to benefit from a market recovery when it comes."
Eurocell shares fell 1.5% to 112.75 pence each on Wednesday afternoon in London.
By Tom Budszus, Alliance News slot editor
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