|
Eurocell PLC on Thursday warned trading has remained subdued in 2026 due to ongoing challenging macroeconomic conditions and the impact of conflict in the Middle East on demand and supply chains. The Derbyshire, England-based manufacturer, recycler and distributor of window, door and roofline PVC products said group sales for the four months to the end of April were up 9% compared to 2025, on a trading day adjusted basis. Excluding Alunet, which it acquired in March last year, sales were up 1%, with an improvement to 5% for the month of April. Eurocell said the macroeconomic picture, weak consumer confidence and the war in the Middle East have continued to affect activity levels in both the repair, maintenance and improvement market and new build housing segments. ‘To mitigate the impact of weak markets and the situation in the Middle East, we continue to invest in and progress our strategic initiatives, implement operational improvements, focus on cost control and offset the impact of higher input cost prices through a combination of surcharges and sales strategies,’ Eurocell said. The firm said the effect of this backdrop on consumer confidence and new building housing market activity over the near term ‘remains difficult to assess’, which it said is reflected in the range of analysts’ forecasts for 2026. The company compiled range of forecasts for adjusted pretax profit is between £21 million and £23 million, compared to £19.0 million in 2025. Eurocell noted that Alunet’s ‘strong’ earnings before interest, tax, depreciation and amortisation delivery means it expects to make around £4 million of earnout payments for its 2025 performance. ‘As previously announced, our intention remains to continue share buybacks in due course, assuming no prolonged impact from the situation in the Middle East and subject to maintaining a strong financial position,’ the firm added. Shares in Eurocell were up 0.5% at 104.00 pence on Thursday afternoon in London. Copyright 2026 Alliance News Ltd. All Rights Reserved.
|
