12th Mar 2021 13:06
Eurocell PLC - Derbyshire-based window, door and roofline PVC products - Sinks to pretax loss of GBP1.5 million 2020 from profit of GBP22.7 million in 2019. Revenue drops 8% to GBP257.9 million from GBP279.1 million in 2019. "Covid-19 has created unprecedented challenges," Chief Executive Mark Kelly says. "The repair, maintenance and improvement market was stronger than we anticipated throughout the second half. Sales exceeded our expectations, particularly in the branch network, operating efficiencies were good and gross margins improved as volumes increased. As a result, we were very pleased to report strong profit growth for the second half."
Sales in first half fell 31% year-on-year but second half sales rose 15%.
Notes dividend payouts were cancelled in 2020, but says it intends to return to paying dividends in 2021.
Kelly adds: "Our focus now includes completing the warehouse transition successfully, thereby facilitating future growth and the delivery of anticipated operating efficiencies. Whilst the current levels of uncertainty mean it is difficult to predict the outcome for the year, 2021 has started well with sales to the end of February up 8% on 2020 and it remains our intention to return to paying dividends this year. We continue to see good potential to outperform our markets, take share and deliver further progress."
Current stock price: 231.30 pence, up 5.6% Friday
Year-to-date change: up 7.1%
By Paul McGowan; [email protected]
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