‘Robust’ performance sees uPVC giant continue upward trajectory

Eurocell, the Alfreton-based manufacturer of uPVC building products, has seen its revenue increase again after successfully navigating a challenging trading environment.

In its results for the year ended 31 December 2019, the company revealed that its turnover rose by 10 per cent last year, up to £279.1 million from £253.7 million in 2018.

Its adjusted pre-tax profits also increased slightly, rising from £22.5 million to £23.1 million.

In a statement, the firm said its “robust” financial performance was largely due to strong sales growth and the “good progress” it has made in driving operational efficiency.

The period also the Derbyshire business invest £8 million in a new warehouse which it expects to open in early 2021.

Eurocell chief executive Mark Kelly said: “We have reported robust financial results for 2019 and, despite Brexit-related and political uncertainty, delivered another year of strong sales growth and a good improvement in gross margin.

“Over the last 4 years, successful deployment of our commercial strategies has led to sales substantially exceeding our expectations. However, profits have been impacted more recently as we build the operating capacity to service our sales and we have experienced inefficiencies and extra costs. With manufacturing constraints now resolved, our focus for 2020 will be on executing the warehouse transition successfully, thereby facilitating future growth and the delivery of further operating efficiencies. As a result, looking forward we see good potential to outperform our markets.

“As yet, there has been no discernible impact on our business from COVID-19, although we remain very alert to this possibility. We have a strong balance sheet, and in March 2020 we were pleased to increase our bank facility to £75 million. We maintain a conservative approach to debt, in order to ensure good liquidity and to manage any emerging risks.

“Despite the impact of very wet weather so far this year, we have made a good start to 2020. Sales and margins for the first two months are in line with our expectations, and notwithstanding macroeconomic and political uncertainty, we expect to deliver further progress this year.”