Eurocell Performance 'Resilient' Amid Subdued Trading Conditions

Eurocell plc, the leading UK manufacturer and distributor of window and door products to the trade, today announces its preliminary results for the year ended 31 December 2025.

Highlights

• Adjusted operating profit up 6%, driven by a strong contribution from Alunet (acquired in March 2025) and effective cost control, partially offset by lower organic sales volumes, labour cost inflation and investment in strategic initiatives
  
  
• Adjusted profit before tax down 5%, reflecting higher finance costs following the Alunet acquisition
  
  
• Continuing focus on operational improvements, cost reduction and cash flow management
  
  
• Further progress with five-year strategy
  
  
• Driving shareholder returns through a combination of ordinary dividends and share buybacks, with total returns of £11.4 million for 2025
  
  
• Will Truman appointed Chief Executive Officer (CEO) on 9 February 2026

Resilient financial performance

• Group sales 13% above 2024, or flat excluding Alunet, with organic volumes 2% lower
  
  
• Profiles division sales up 1% on 2024, with volumes 2% lower, reflecting reduced RMI ⁽³⁾ activity through our trade fabricators, partially offset by some modest improvement in the new build housing market
  
  
• Branch Network division sales down 1% on 2024, with volumes 2% lower, reflecting general Branch Network sales to the RMI market down 6%, offset by further progress with our strategic initiatives (see below)
  
  
• Alunet post-acquisition sales of £46.7 million in the 10 months to 31 December 2025, representing growth of 28% over the corresponding March to December period in 2024, driven by market share gains
  
  
• Adjusted operating profit up 6% vs 2024, reflecting a strong contribution from Alunet and effective cost control, partially offset by:
  
  -    Lower organic sales volumes and competitive pressure on selling prices in the branches
  
  -    Continued labour and other overhead cost inflation, including the increases to employers' National Insurance and the National Living Wage from April 2025
  
  -    Further targeted investment to maintain momentum in strategic initiatives, including the new branch opening programme (see below)
  
  
• Reported operating profit up 4% vs 2024 and reported profit before tax down 12%, after non-underlying items of £6.8 million ⁽¹⁾
  
  
• Strong balance sheet, with pre-IFRS 16 net debt of £22.1 million down from £29.0 million at 30 June 2025 (31 December 2024: £3.1 million), representing leverage of 0.7x pre-IFRS 16 EBITDA ⁽⁴⁾
  
  -     Initial consideration for Alunet of c.£22m substantially funded from debt facility
  
  -   Net cash generated from operating activities of £48.4 million up 10% vs 2024, reflecting good cash management
  
  
• Driving shareholder returns through a combination of ordinary dividends and share buybacks
  
  - Interim dividend paid in October 2025 of 2.3 pence per share up 5% (2024: 2.2 pence per share)
  
  -     Proposed final dividend of 4.1 pence per share (2024: 3.9 pence per share), resulting in total dividends for the year of 6.4 pence per share (2024: 6.1 pence per share), up 5% and totalling £6.4 million (2024: £6.2 million)
  
  -     £5 million buyback announced in March 2025 now complete
  
  -   Total returns announced for 2025 of £11.4 million (equivalent to a yield ⁽⁵⁾ of c.8%), which followed total returns for 2024 of £21.2 million (including a buyback of £15 million and equivalent to a yield of c.14%)
  
  -     Intend to continue share buybacks, assuming no prolonged impact from the situation in the Middle East and subject to maintaining a strong financial position

Progress with strategic initiatives

• New branches: 2 opened at the end of 2024 plus 7 new sites and 6 relocations completed in 2025
  
  -    Sales from new branches in 2025 of £3.3 million
  
  -    Creates a short-term profit drag (operating loss of £1.1 million in 2025), but drives longer-term profit growth
  
  
• Windows and doors: accelerated roll-out, with all 215 branches live on the programme from July (90 live at the end of 2024), driving sales of £30.3 million, up 12% on 2024 and up 26% on 2023, the base year for the strategic plan
  
  
• Digital growth: e-commerce sales of £6.6 million, up 40% on 2024, with a strong operating profit margin
  
  
• Garden rooms: sales of £9.6 million up 9% on 2024, with an improving operating profit margin
  
  
• Business effectiveness: ongoing operational improvements and cost reduction
  
  -    Previously announced programmes implemented in H1 2025, including Branch Network restructuring, deliver annualised cost savings of c.£4 million
  
  -    Continuing project to modernise IT infrastructure, with transition to new systems expected at the end of 2026

Derek Mapp, Chair of Eurocell plc said:

"Our financial performance in 2025 was resilient, in the context of trading conditions that remained subdued. We delivered an increase of 6% in adjusted operating profit despite lower organic volumes, thanks to a strong contribution from Alunet and effective cost control. Our cash generation was good and our financial position remains strong.

"We have continued to invest to maintain momentum with our strategy and we are planning to deliver further progress in 2026. The acquisition of Alunet in March is a compelling strategic fit for Eurocell and the business is performing strongly under our ownership.

"Demand in the RMI market remains sluggish, and we are therefore continuing to focus on operational improvements and cost control. The potential impact of the evolving situation in the Middle East is difficult to assess at this time, but the medium and long-term prospects for the UK construction market remain attractive and we are well positioned to drive sustainable growth in shareholder value.

"Finally, the recent appointment of Will Truman as CEO will bring both valuable stability and an injection of pace, as we continue to progress our strategy."

Will Truman, CEO of Eurocell plc said:

"I am delighted to be leading Eurocell. We have a strong business with a clear strategy, and I look forward to working with the team to drive opportunities and accelerate our growth." 

(1)   Non-underlying items of £6.8 million in 2025 comprise strategic IT project costs of £4.2 million (including cloud computing and internal resourcing costs), restructuring costs of £1.8 million, plus Alunet acquisition and certain other costs of £0.8 million. Non-underlying items of £6.2 million in 2024 include £2.2 million of strategic IT project costs, a £3.2 million non-cash right-of-use asset impairment charge and £0.8 million of Alunet acquisition costs.

(2)  Net debt is bank overdrafts, borrowings, deferred consideration and lease liabilities less cash and cash equivalents. Pre-IFRS 16 net debt excludes lease liabilities and is provided as our financial covenants are measured on this basis.

(3)   RMI is repair, maintenance and improvement.

(4)   Pre-IFRS 16 EBITDA is stated inclusive of operating lease rentals under IAS 17 Leases.

(5)   Yield calculated as total returns divided by average market capitalisation for the year.

Source : Eurocell

Image : Eurocell

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