**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 £24.1 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 £19.0 million due to higher finance costs post-acquisition.
Revenue grew by 13% to £403.5 million, with Alunet contributing £46.7 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 £30.3 million.
Digital growth with e-commerce sales up 40% to £6.6 million.
Garden rooms sales increased by 9% to £9.6 million.
3. **Acquisition of Alunet**
Alunet performed strongly, with post-acquisition sales of £46.7 million, representing 28% growth over the corresponding period in 2024.
Adjusted operating profit from Alunet was £4.8 million, contributing significantly to the group’s overall performance.
4. **Cost Management and Operational Improvements:**
Ongoing focus on cost reduction and operational efficiency, with annualized cost savings of £4 million from restructuring programs.
Investment in IT infrastructure modernization, expected to complete by the end of 2026.
5. **Shareholder Returns**
Total shareholder returns of £11.4 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 £5 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 company’s 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.
Eurocell’s 2025 performance reflects resilience in challenging conditions, with strategic acquisitions and operational improvements driving growth and shareholder value.