Eurocell (ECEL) makes and distributes window, door and roofline PVC products, and in its maiden set of full-year results adjusted pre-tax profit grew by 29 per cent to £23m. Revenue was ahead by just 1.6 per cent, but increased use of recycled materials, low raw material prices and improved manufacturing performance helped to lift gross margins from 48.3 per cent to 51.7 per cent.
Its Profiles division experienced subdued demand from the repair, maintenance and improvement market, offset by a 10 per cent increase in demand for from the new-build sector. As customer numbers increased, cash profit was up a quarter at £21.6m. The acquisition of door manufacturer Vista Panels after the year-end will grow its new-build presence further.
In the Building Plastics division, which has been compared to a specialist builders' merchant, profit dipped by 4 per cent, but this reflected an increased level of investment as 13 new branches were opened during the year.
Trading in the current financial year showed total group sales up by 10.6 per cent in the first 10 weeks. Analysts at Peel Hunt are forecasting adjusted pre-tax profit for the year to December 2016 of £28m and EPS of 22.4p (from £23m and 18.6p in 2015).
| EUROCELL (ECEL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 180p | MARKET VALUE: | £180m | |
| TOUCH: | 179-181p | 12-MONTH HIGH: | 222p | LOW: 176p |
| DIVIDEND YIELD: | 4.4% | PE RATIO: | 12 | |
| NET ASSET VALUE: | 27p* | NET DEBT: | 97% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 173 | 16.7 | 11.9 | nil |
| 2015 | 176 | 19.7 | 15.5 | 7.9 |
| % change | +2 | +18 | +30 | - |
Ex-div: 28 Apr Payment: 26 May *Including intangible assets of £14.5m, or 15p a share | ||||
