Eurocell plc paid an interim dividend of 3.2 pence per share in October 2019. The Board proposes a final dividend of 6.4 pence per share, resulting in total dividends for the year of 9.6 pence per share, representing growth of 3%
Other financial highlights include:
Revenue growth of 10% (8% excluding acquisitions) includes:
- Like-for-like sales growth of 7%
o Profiles division like-for-like sales growth of 5%, including good contributions from both existing and new accounts, arising consistently from across their base of fabricators
o Building Plastics division like-for-like sales growth of 8%, reflecting the positive impact from better stock availability and improvements in operating standards
- Sales from branches opened in 2018/19 of £2.2 million
o 4 new sites in 2019, including the acquisition of Trimseal in March (2018: 12 new sites, including the acquisition of Kent Building Plastics in December)
- Incremental sales from 2018/19 acquisitions of £6.2 million
Gross margin up 170 bps to 51.2% (2018: 49.5%)
- Selling price increases implemented to recover cost inflation
- Increased use of recycled material to 13.4k tonnes or 23% of material consumption (2018: 9.5k tonnes, or 17%)
Tax rate on pre-IFRS 16 adjusted profit before tax of 14.7% (2018: 14.7%) includes the benefit of Patent Box relief
Capex of £15.2 million (2018: £8.7 million) includes:
- £4.8m to expand production capacity with additional co-extrusion and foam lines
- £5.7m to increase recycling capability at two plants (with associated tooling)
- £4.7m of other planned and maintenance capex
IFRS 16 (leases) reduced profit before tax by £0.4 million in 2019
- Net debt increased by c.£34 million to reflect present value of future lease payments
