Eurocell Plc · LSE:ECEL
Eurocell — FY2024 Earnings Presentation
37 slides from Eurocell's earnings presentation, March 2025
Slide 1: Full Year Results 2024
Full Year Results 2024
Slide 2: Contents
Contents Agenda Presenters Overview Darren Waters Financial Review Michael Scott Strategy Update Alunet Acquisition 2
Slide 3: Overview
Overview Revenue Darren Waters – Chief Executive £357.9m ▼ 2% 2023 Profits up 32% on lower sales, driven by proactive gross Adjusted profit before tax margin management and reduced input costs £20.0m Good progress with early stages of five-year strategy and ▲ 32% 2023 remain well positioned for when
Slide 4: Financial Review
FINANCIAL REVIEW 4
Slide 5: Financial Highlights
Financial Highlights Michael Scott – Chief Financial Officer Revenue Adjusted profit before tax Adjusted earnings per share £357.9m £20.0m 14.4p ▼ 2% 2023: £364.5m ▲ 32% 2023: £15.2m ▲ 31% 2023: 11.0p Net cash from operating activities Net debt/(cash) (pre-IFRS 16) Total dividends £44.2m £3.1m 6.05p
Slide 6: Financial Performance
Financial Performance Income Statement ► 2024 non-underlying items £6.2m £m 2023 2024 Change - £2.2m implementation costs for ERP systems replacement project – cloud-based “Software as a Service” Revenue 364.5 357.9 ▼ 2% - £0.8m due diligence costs in relation to the Alunet acquisition in March Gros
Slide 7: Sales
Sales CPA Construction Products Industry Forecasts 2024-26 (1) Private housing RMI growth Continued Weak Market Conditions 13% 7% Sales Bridge 3% 4% (4%) 370 2022 2023 2024 F 2025F 2026F 365 (8.0) Total housing growth £m 364.5 9.4 (3.5) Sales 360 ▼ 2% 11% (4.5) 8% 6% 357.9 355 350 2023 Profiles volu
Slide 8: Adjusted Operating Profit
Adjusted Operating Profit Profits Up, Driven by Reduced Input Costs Operating Profit Bridge Virgin Resin and Recycling Feedstock Prices (indexed) 35 Adjusted 300 4.8 (4.6) Feedstock price Virgin compound cost operating 30 profit 8.9 ▲ 24% 250 (0.5) (2.4) 2.0 (2.3) 25 200 £m 20 (1.5) 22.8 150 18.4 15
Slide 9: Capex
Capex Well-invested Facilities ► 2024 capex £10.7m (2023: £8.9m) Total Capital Expenditure and Allocation (£m) - £3m new branches, refurbishments and relocations - Remainder primarily maintenance capex £m 2021 2022 2023 2024 ► 2025 capex guidance c.£15m Manufacturing capacity 7 4 1 - - £3m for strat
Slide 10: Cash Flow
Net Cash/(Debt) Reconciliation Cash Flow £m 2023 2024 Change Cash and overdraft 0.4 (2.6) (3.0) Strong Balance Sheet and Liquidity Borrowings - (0.5) (0.5) Net cash/(debt) (pre-IFRS 16) 0.4 (3.1) (3.5) IFRS 16 leases (58.6) (59.4) (0.8) 55 £m (0.2) (1.9) Net debt (58.2) (62.5) (4.3) (1.8) (10.3) 45
Slide 11: Capital Allocation Policy
Capital Allocation Policy Focused on Enhancing Shareholder Returns ► Capital allocation policy updated following strategy launch - Intend to drive shareholder returns through a combination of a progressive ordinary dividend and supplementary distributions (currently via share buybacks) 1 2 3 4 5 Org
Slide 12: Financial Summary
Financial Summary Including Technical Guidance for 2025 ► Adjusted PBT up 32% despite lower sales, driven by: Guidance (post-IFRS 16) 2024 Reported 2025(1) Guidance - Proactive gross margin management, combined with the benefit of lower input costs - Reduced volumes and competitive pressure on selli
Slide 13: Strategy Update
amernse® Beae a DATE | im eurocell
Slide 14: Strategy
Strategy Launched March 2024 Creating sustainable building solutions for the trade of today, the homes of tomorrow and the environment of the future 5-YEAR AMBITION £500m Sales £50m Operating profit 10% Operating margin CUSTOMER BUSINESS PEOPLE ESG GROWTH EFFECTIVENESS FIRST LEADERSHIP Be the trade
Slide 15: Customer Growth – Branch Network Update
Customer Growth – Branch Network Update Confirmed Optimal Estate Size of at Least 250 Branches, with Priority Locations Identified CUSTOMER GROWTH Strategic Plan New and relocated branches now opening with refreshed branch exterior and signage • 212 branches at 31 December New Branches Timing 2024 –
Slide 16: Customer Growth – Windows and Doors
Customer Growth – Windows and Doors Accelerated Roll-out CUSTOMER GROWTH Route to Market for Windows and either sold directly to a window installer… manufacture which is made into windows who install the finished providing the homeowner window profile and by our fabricator partners windows and doors
Slide 17: Customer Growth – Extended Living Update
Customer Growth – Extended Living Update Performance on Track CUSTOMER GROWTH ► Garden rooms OUR Take share from established market leaders and become best-in-market - Leveraging exceptional customer AMBITION journey and efficient processes - Good opportunity to gain share Horizontal / Vertical Clad
Slide 18: Digital Growth
Digital Growth Strategy Overview and Update CUSTOMER GROWTH OUR Enhance our market leading digital proposition to build awareness of our products and home improvement AMBITION solutions, driving new customers and incremental sales Pay per click (PPC) Homeowner Social media Improved website experienc
Slide 19: People First
People First Strategy Overview and Update PEOPLE FIRST OUR Eurocell will be a great place to work where talented, engaged and motivated colleagues work passionately to AMBITION achieve clear business and personal goals Launch of new Eurocell people branding HEALTH AND SAFETY EMPLOYEE VALUE PROPOSITI
Slide 20: Business Effectiveness
Business Effectiveness Strategy Overview and Update BUSINESS EFFECTIVENESS OUR A lean and efficient business that enables agility and enhances our profitability AMBITION Estimated cost of IT system replacement project in the region of £10m IT SYSTEM REPLACEMENT over 3 years 2024-26 (c.£2m in 2024, c
Slide 21: ESG Leadership
ESG Leadership Strategy Overview and Update ESG LEADERSHIP Transition Plan: OUR Earn a reputation for being a truly Near-term Target to Reduce Scope 1 and 2 Emissions 70% by 2034 (4) AMBITION responsible company ► Target Net Zero by 2045 - Filed targets with SBTi (1) in Q1 2025 and published Transit
Slide 22: Alunet Acquisition
ALUNET ACQ - — SITION a ail = eurocell ss
Slide 23: Alunet Acquisition Overview
Alunet Acquisition Overview ► Compelling strategic fit 2024 Financial Performance (Unaudited) - Addresses growing trend towards aluminium in residential fenestration £m 2024 - Significantly strengthens position in composite doors Sales - Adds garage doors to product portfolio Alunet Systems 16 ► Fou
Slide 24: Alunet Acquisition – Enhancing our Product Portfolio
Alunet Acquisition New ranges Enhancing our Product Portfolio Product Portfolio Product Portfolio Building products Roofline Skirting and Composite Injections and trim architrave cladding moulding Window profiles Window Window Cavity Sash Window system system closer window system Door systems Panel
Slide 25: Alunet Systems
Alunet Acquisition Alunet Systems An innovative aluminium systems house focused on the residential sector, based in Dewsbury ► Aluminium becoming increasingly popular in the UK window and door market - Driven by bi-fold doors, but now featuring in other fenestration products - Aluminium fabricators
Slide 26: Comp Door
Alunet Acquisition Comp Door A fast-growing manufacturer of premium solid timber core entrance doors, based in Stoke-on-Trent ► Solid timber core composite doors are growing in share - Sturdiness and rigidity reduces risk of warping and bowing ► Comp Door technical leadership - Becoming recognised a
Slide 27: JDUK and UK Doors (Midlands)
Alunet Acquisition JDUK and UK Doors (Midlands) Aluminium roller shutter and sectional garage doors for the trade ► JDUK - Distributes insulated sectional and side-hung aluminium garage doors and components, based in Dewsbury - Exclusive private-label arrangement with a European-based supplier for t
Slide 28: Summary and Outlook
Summary and Outlook Increased profits in line with expectations Good early momentum with strategic initiatives Acquisition of Alunet is a compelling strategic fit 28
Slide 29: Appendix
APPENDIX 29
Slide 30: Product Range
Product Range Ranges of window profile Fascias, soffits and Traded goods and doors guttering Standard products Conservatories and Syncro patio and Aspect Skypod pitched skylights Equinox tiled roofs bi-fold doors Made-to- order products 30
Slide 31: Profiles Division
Profiles Division ► Manufactures: - Extruded rigid and foam PVC profiles using virgin PVC compound - Rigid products also include recycled compound ► Recycles: - Factory offcuts (post-industrial) and old windows (post-consumer waste) ► Sells: - Rigid PVC profiles to a network of c.400 third party fab
Slide 32: Branch Network Division
Branch Network Division ► Sells: - Range of Eurocell manufactured and branded PVC foam roofline and window fitting / maintenance products - Third party manufactured ancillary products: sealants, tools and rainwater products - Vista doors - Windows fabricated by third parties using products manufactu
Slide 33: Divisional Review
Divisional Review Profiles Division P&L 2024 Performance £m 2023 2024 Change 3rd party revenue 154.9 146.1 ▼ 6% ► Profiles - Sales down 6%, with volumes down 6% ▼ 2% Inter-segmental revenue (1) 64.9 63.7 • Subdued RMI activity and a weak new build market • Cost of living pressures, interest rate inc
Slide 34: Working Capital
Working Capital Efficient Cash Flow Management ► 2024 outflow from working capital £0.2m (2023: inflow £13m) Key Working Capital Metrics ► Stock days at 85 vs 84 at December 2023 Debtors Stock Days - Stocks ▲ £0.5m, supports strategic growth initiatives Days - Follows optimisation programme in 2023
Slide 35: Powerful Sustainability Credentials
Powerful Sustainability Credentials Use of Recycled PVC in Manufacturing Leading UK-based Recycler of PVC Windows 35% 32% 32% 29% 30% ► Improving % of recycled material consumed 25% 27% 25% 23% - Use in primary extrusion maintained at 32% of consumption in 2024 (2023: 32%) - Objective to increase to
Slide 36: Environmental and Social
Environmental and Social Targets and KPIs KPI 2023 Result 2024 Result Target Link to UN SDGs Environmental – circular economy No more than 5% waste to landfill by 2025 and 1% Waste to landfill % landfill 9% 2.5% by 2030 Increase of 2% per annum in waste recycled (to Waste recycled % recycled 76% 69%
Slide 37: Eurocell
eurocell