**Summary**
Eurocell plc, a leading UK manufacturer and distributor of window and door products, reported preliminary results for the year ended 31 December 2025, highlighting a resilient financial performance despite subdued trading conditions. Key points include
1. **Financial Performance**
Adjusted operating profit increased by 6% to ยฃ24.1 million, driven by the strong contribution from the Alunet acquisition (completed in March 2025) and effective cost control.
Adjusted profit before tax decreased by 5% to ยฃ19.0 million due to higher finance costs post-acquisition.
Revenue grew by 13% to ยฃ403.5 million, with Alunet contributing ยฃ46.7 million in the 10 months post-acquisition.
Organic sales volumes were 2% lower, reflecting reduced activity in the repair, maintenance, and improvement (RMI) market.
2. **Strategic Initiatives**
Progress on the five-year strategy, including the expansion of the branch network with 7 new sites and 6 relocations in 2025.
Accelerated roll-out of windows and doors across all branches, with sales up 12% to ยฃ30.3 million.
Digital growth with e-commerce sales up 40% to ยฃ6.6 million.
Garden rooms sales increased by 9% to ยฃ9.6 million.
3. **Acquisition of Alunet**
Alunet performed strongly, with post-acquisition sales of ยฃ46.7 million, representing 28% growth over the corresponding period in 2024.
Adjusted operating profit from Alunet was ยฃ4.8 million, contributing significantly to the groupโs overall performance.
4. **Cost Management and Operational Improvements:**
Ongoing focus on cost reduction and operational efficiency, with annualized cost savings of ยฃ4 million from restructuring programs.
Investment in IT infrastructure modernization, expected to complete by the end of 2026.
5. **Shareholder Returns**
Total shareholder returns of ยฃ11.4 million in 2025, including dividends and share buybacks.
Proposed final dividend of 4.1 pence per share, resulting in total dividends of 6.4 pence per share, up 5%.
Completion of a ยฃ5 million share buyback program in March 2025.
6. **Leadership Changes**
Will Truman appointed as Chief Executive Officer (CEO) in February 2026, bringing stability and pace to the execution of the companyโs strategy.
7. **Outlook**
Continued focus on operational improvements and cost control in a sluggish RMI market.
Medium and long-term prospects for the UK construction market remain attractive, with Eurocell well-positioned for sustainable growth.
Eurocellโs 2025 performance reflects resilience in challenging conditions, with strategic acquisitions and operational improvements driving growth and shareholder value.