**Summary of Eurocell plc Half-Year Report for Six Months Ended 30 June 2025**
Eurocell plc, a leading UK manufacturer and distributor of door and window products, reported its half-year results for 2025, highlighting resilient financial and operational performance despite subdued trading conditions. Key points include
### **Financial Performance**
**Revenue Growth**Revenue increased by 10% to £193.2 million compared to H1 2024 (£175.7 million), driven by the acquisition of Alunet in March 2025. Organic revenue was flat, with volumes down 2%.
**Adjusted Operating Profit**Up 9% to £10.1 million, supported by Alunets strong contribution and cost control, partially offset by lower organic sales, labour cost inflation, and strategic investments.
**Adjusted Profit Before Tax**Down 3% to £7.8 million due to higher finance costs post-Alunet acquisition.
**Net Cash Generation**£18.4 million, reflecting continued focus on cash management.
**Net Debt**Increased to £98.7 million (reported) and £29.0 million (pre-IFRS 16) due to the Alunet acquisition.
### **Operational Highlights**
**Alunet Acquisition**Alunet performed well, contributing £17.7 million in sales and £1.6 million in adjusted operating profit. Synergies and market share gains were realized.
**Strategic Initiatives**Progress in new branch openings (7 new sites in 2025), windows and doors sales (up 8%), and e-commerce (up 41%).
**Cost Management**Implemented cost-saving measures, including Branch Network restructuring, expected to save £4 million annually.
**Sustainability**Maintained leadership in PVC recycling, with 30% recycled material used in production.
### **Dividends and Shareholder Returns**
**Interim Dividend**Increased by 5% to 2.3 pence per share.
**Share Buybacks**£5 million buyback announced in March 2025, with £3.3 million spent as of 1 September.
### **Outlook**
**Full-Year Expectations**<mark style="background-color:yellow">Below</mark> previous forecasts due to subdued trading conditions and macroeconomic uncertainty.
**Medium to Long-Term**Positive growth prospects for the UK construction market, with Eurocell well-positioned to drive sustainable shareholder value.
### **Strategic Focus**
**Customer Growth**Expanding Branch Network and enhancing digital capabilities.
**Business Effectiveness**Streamlining operations and reducing costs.
**People First**Improving employee engagement and talent management.
**ESG Leadership**Progress towards Net Zero by 2045 and enhancing sustainability practices.
### **Management Commentary**
CEO Darren Waters emphasized resilience in the face of challenging conditions, highlighting Alunets strategic fit and ongoing investments in growth initiatives. The focus remains on cost control, operational efficiency, and leveraging market opportunities.
**Conclusion**Eurocell demonstrated resilience in H1 2025, with Alunets acquisition bolstering performance. Despite near-term challenges, the company remains committed to its strategic goals and long-term growth prospects.
| Metric | H1 2025 (£ million) | H1 2024 (£ million) | Change |
|---|---|---|---|
| Revenue | 193.2 | 175.7 | 10% |
| Adjusted Operating Profit | 10.1 | 9.3 | 9% |
| Adjusted Profit Before Tax | 7.8 | 8.0 | (3%) |
| Net Cash Generated from Operating Activities | 18.4 | 21.9 | (16%) |
| Net Debt (pre-IFRS 16) | 29.0 | 4.3 | (24.7) |
| Net Debt (reported) | 98.7 | 60.9 | (37.8) |