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• Revenue: GBP358 million, down 2% from 2023.

• Adjusted Profit Before Tax (PBT): GBP20 million, up 32% from 2023.

• Net Debt: GBP3.1 million pre-IFRS 16, slightly increased.

• Share Buybacks: GBP15 million completed, reducing shares from GBP112 million to GBP101 million.

• Ordinary Dividend: Increased by 10% to 6.05p per share.

• Adjusted Earnings Per Share: Increased by 31%.

• Gross Margin: Benefited from lower input costs despite competitive pressures.

• CapEx: GBP10.7 million in 2024, with guidance of GBP15 million for 2025.

• Finance Costs: GBP2.8 million, down 0.4% from 2023.

• Tax Rate: 23% for 2024, expected to be 24.5% for 2025.

• Non-Underlying Charges: GBP6.2 million, including ERP system costs.

• Branch Network Sales: Up 1% with volumes 3% higher.

• Adjusted Operating Profit: GBP22.8 million, up 24% from 2023.

• Recycling Business: 18,000 tons of recycled material used, delivering a gross margin benefit of approximately GBP2 million.

• Cash Flow: Good cash generation despite a small increase in net debt.

• Alunet Acquisition: Initial consideration of GBP29 million, expected to be accretive to 2025 earnings.

• Warning! GuruFocus has detected 5 Warning Signs with ECELF.

Release Date: March 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Eurocell PLC (ECELF) reported a 32% increase in adjusted profit before tax, reaching GBP20 million, aligning with expectations.

• The company completed three share buybacks totaling GBP15 million, reducing shares in circulation and increasing shareholder returns.

• Eurocell PLC (ECELF) increased its ordinary dividend by 10%, demonstrating confidence in its business potential.

• The acquisition of Alunet is seen as a strategic fit with significant growth potential, enhancing Eurocell's product offerings.

• The company has made good progress on strategic initiatives, including branch network expansion and digital e-commerce growth.

Negative Points

• Revenues were down 2% in 2024, with volumes 1% lower, reflecting challenging trading conditions.

• Competitive pressure on selling prices in the branch network and ongoing cost inflation impacted profitability.

• Net debt increased slightly to GBP3 million, despite share buybacks, due to the acquisition of Alunet.

• The company faced a GBP3 million impact from national insurance contributions and national living wage increases.

• Non-underlying charges of GBP6.2 million included costs related to ERP systems replacement and a lease dispute.

Q & A Highlights

Q: Can you discuss the latest dynamics in new builds, particularly regarding volume uptake and demand consistency through fabricators? A: Darren Waters, CEO: It's early stages of an uptick in demand. We're highly specified in the new build sector, with nearly half of all new UK homes using Eurocell window profiles. While we're seeing a small uptick, we're cautious as similar conditions last year were short-lived.