Eurocell, the Derbyshire manufacturer, recycler, and distributor of PVC window, door, and roofline products, has reported a decrease in revenue, despite a rise in pre-tax profits for the six months ending 30 June 2024. Adjusted profit before tax reached £8m, marking a 33% increase from the previous year. This growth was attributed to proactive gross margin management and reduced input costs.
On the other hand, revenue saw a 5% decline compared to the first half of 2023, totaling £175.7m. This was influenced by subdued repair, maintenance, and improvement activities, along with a sluggish new build housing market.
Chief Executive Darren Waters commented, “Trading conditions remain challenging in 2024, with macroeconomic uncertainty affecting our key markets. Customer cautiousness has led to decreased investment in home improvements and subdued activity levels in the residential construction sector, resulting in sales being 5% lower than in H1 2023. However, our proactive approach to managing gross margin and costs has boosted profit margins, and our outlook for the full year remains unchanged.”
He added, “Our new strategic initiatives have shown promising early results, setting us on a course to achieve our ambitious goal of building a £500 million revenue business with a 10% operating margin within five years. The UK construction market offers promising growth prospects in the medium and long term, supported by a deficit in new build housing and an aging housing stock in need of repairs and maintenance. With our strategic progress and cost-saving measures, we are well-positioned to drive sustainable growth and enhance shareholder value.”
