Eurocell Plc · LSE:ECEL
Eurocell — H1 2025 Earnings Presentation
34 slides from Eurocell's earnings presentation, Sep 4, 2025
Slide 1: Half Year Results 2025
Half Year Results 2025
Slide 2: Contents
Contents Agenda Presenters Overview Darren Waters Financial Review Michael Scott Strategy Update 2
Slide 3: Overview
Overview Revenue Darren Waters – Chief Executive £193.2m ▲ 10% H1 2024 Resilient H1 2025 financial performance Adjusted operating profit Alunet acquisition performing well £10.1m ▲ 9% H1 2024 Continuing focus on operational improvements, cost reduction and cash flow management Adjusted profit before
Slide 4: Financial Review
FINANCIAL REVIEW 4
Slide 5: Financial Highlights
Financial Highlights Michael Scott – Chief Financial Officer Revenue Adjusted operating profit Adjusted earnings per share £193.2m £10.1m 6.0p ▲ 10% H1 2024: £175.7m ▲ 9% H1 2024: £9.3m ▲ 7% H1 2024: 5.6p Net cash from operating activities Net debt (pre-IFRS 16) Interim dividend £18.4m £29.0m 2.3p p
Slide 6: Financial Performance
Financial Performance Income Statement H1 H1 £m Change ► H1 2025 non-underlying items £4.0m 2024 2025 - £2.2m implementation costs for ERP systems replacement (total to date £4.4m) Revenue 175.7 193.2 ▲ 10% - £1.4m termination costs in respect of restructuring Gross profit 92.2 98.5 - £0.4m due dili
Slide 7: Sales
Sales Resilient Despite Continued Subdued Market Conditions Sales Bridge Sales ▲ 10% ► Sales ▲ 10%, with organic volumes ▼ 2% ► Branch Network ▼ 1%, with volumes ▼ 2% - Trading conditions remain subdued - Underlying RMI volumes down 5% - Challenging macroeconomic conditions - Competitive pressure on
Slide 8: Adjusted Operating Profit
Adjusted Operating Profit Strong Contribution from Alunet Operating Profit Bridge Adjusted operating profit ▲ 9% ► Organic sales volume ▼ 2% ► Property cost inflation - Includes impact of rent reviews at several operational sites ► Proactively managing gross margin - Continue to offset cost inflatio
Slide 9: Capex
Capex Investing to Drive Strategic Plan ► H1 2025 capex £6.6m (H1 2024: £4.5m) Total Capital Expenditure and Allocation (£m) - £2.4m new branches and relocations H1 - Remainder largely maintenance capex £m 2021 2022 2023 2024 2025 ► 2025 capex guidance c.£13m Manufacturing capacity 7 4 1 - - - £3m f
Slide 10: Cash Flow
Net Debt Reconciliation Cash Flow £m Dec 2024 Jun 2025 Change Cash and overdraft (2.6) 4.8 7.4 Strong Balance Sheet and Liquidity Borrowings (0.5) (33.6) (33.1) Deferred consideration - (0.2) (0.2) Net debt (pre-IFRS 16) (3.1) (29.0) (25.9) IFRS 16 leases (59.4) (69.7) (10.3) Net debt (62.5) (98.7)
Slide 11: Capital Allocation Policy
Capital Allocation Policy Focused on Shareholder Returns Driving shareholder returns through a combination of an increasing ordinary dividend and share buybacks 1 2 3 4 5 Organic Ordinary No share Selective Supplementary investment dividend dilution acquisitions distributions ► Prioritise organic ►
Slide 12: Financial Summary
Financial Summary Including Technical Guidance for 2025 ► Resilient financial performance Guidance (post-IFRS 16) 2024 2025(1) Reported Guidance - Adjusted operating profit up 9% - Continuing focus on cost reduction and cash flow management Underlying Income Statement - Cash conversion remains good
Slide 13: Strategy Update
‘ ti STRATEGY-UPDATE
Slide 14: Strategy
Strategy Further Progress with 5-year Strategy 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 LEADER
Slide 15: Alunet Acquisition
Alunet Acquisition March 2025 Aluminium Share of UK Door and Window Market ► Compelling strategic fit - Addresses growing trend towards aluminium in residential fenestration Volume Value - Significantly strengthens position in composite doors - Adds garage doors to product portfolio ► Four businesse
Slide 16: Alunet Acquisition: Strong Post-acquisition Performance
Alunet Acquisition Strong Post-acquisition Performance CUSTOMER GROWTH JDUK and Alunet Systems Comp Door UK Doors (Midlands) H1 2025(1) sales of £6.4m, up 30% v 2024 H1 2025(1) sales of £6.9m, up 56% v 2024 H1 2025(1) sales of £4.4m, up 20% v 2024 2025 Update • Aluna whole house concept – new Alunet
Slide 17: Branch Network
Branch Network Strategy Overview CUSTOMER GROWTH BRANCH NETWORK STRATEGY UPDATE We are optimising our and continuing to invest in to provide a great place to where we can grow our branch network… our branch proposition… work for our colleagues… core and new ranges • Estimated optimum network size of
Slide 18: 2025 Branch Opening and Relocation Programme
Branch Network 2025 Branch Opening and Relocation Programme CUSTOMER GROWTH 9 new branches opened Q4 2024 – YTD 2025, 7 branches relocated during 2024 / YTD 2025, primarily in the Southeast of England where previous location or size not optimal Bishops Watford Slough Wembley Dewsbury Preston Stortfo
Slide 19: 2025 Customer Journey Initiatives
Branch Network 2025 Customer Journey Initiatives CUSTOMER GROWTH Successful trial of new customer journey at Croydon (opened June 2025) Customer loyalty scheme launched June 2025 • Extensive product range on show and behind C B trade counter area • Smooth flow through the branch • More opportunities
Slide 20: Windows and Doors
Windows and Doors Accelerated Roll-out Completed in June 2025 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
Slide 21: Digital Growth
Digital Growth Strengthened Strategy in 2025 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 and digi
Slide 22: Extended Living
Extended Living Garden Rooms and Extensions CUSTOMER GROWTH ► Good sales growth since OUR launching these product ranges Take share from established market leaders and become best-in-market AMBITION ► Operating margins lower than anticipated Horizontal / Vertical Cladding High End Model Sales Perfor
Slide 23: People First
People First 2025 Initiatives 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 PROPOSITION Metrics s
Slide 24: Business Effectiveness
Business Effectiveness 2025 Cost Reduction Initiatives BUSINESS EFFECTIVENESS OUR A lean and efficient business that enables agility and enhances our profitability AMBITION Estimated cost in the region of £10m over 3 years 2024-26 Continuous improvement IT system replacement (c.£2m in 2024, c.£6m in
Slide 25: ESG Leadership
ESG Leadership 2025 Progress ESG LEADERSHIP Transition Plan: OUR Near-term Target to Reduce Scope 1 and 2 Emissions 67% by 2034 (4) A truly responsible company AMBITION ► Target Net Zero by 2045 - H1 2025 update • Targets validated by SBTi(1) and published Transition Plan ktCO2 • CDP Climate Disclos
Slide 26: Summary and Outlook
Summary and Outlook Resilient H1 2025 financial performance Alunet acquisition performing well Continuing focus on operational improvements, cost reduction and cash flow management Further progress with 5-year strategy Driving shareholder returns through a combination of an increasing ordinary divid
Slide 27: Appendix
APPENDIX 27
Slide 28: 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 28
Slide 29: 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 30: 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 31: Divisional Review
Profiles Division P&L Divisional Review £m H1 H1 Change 2024 2025 H1 2025 Performance 3rd party revenue 72.6 73.3 ▲ 1% ► Profiles Inter-segmental revenue (1) 32.7 31.0 ▼ 5% - Sales up 1%, with volumes down 2% • Reduced RMI activity through our trade fabricators, partially offset by some modest impro
Slide 32: Working Capital
Working Capital Efficient Cash Flow Management ► H1 2025 outflow from working capital £0.9m (H1 2024: inflow £0.9m) Key Working Capital Metrics ► Stock days at 87 vs 85 at December 2024 and 88 at June 2024 Stock Days Debtors Days - Stocks ▼ £0.8m June 2024 88 32 ► Debtor days at 32 vs 27 at December
Slide 33: 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 34: eurocell
eurocell