On 2 September 2021, the Eurocell PLC Board have approved an interim dividend for the six months ended 30 June 2021 of 3.2 pence per share (£3.6 million). No dividends were paid in respect of 2020. The interim dividend for 2019 was 3.2 pence per share (£3.2 million).
The interim dividend will be paid on 8 October 2021 to shareholders on the register at the close of business at 17 September 2021 and shares will be marked ex-dividend on 16 September 2021. They will now revert to a dividend cover target of 2x through the cycle, with approximately one-third of the total paid as an interim.
Other financial highlights include:
- Continued successful deployment of commercial strategies, with sales up 23% vs H1 2019, including:
- Profiles up 19%: good contribution from trade fabricators (substantially focused on the RMI market) and new build fabricators, as well as a very strong performance from Vista doors
- Building Plastics up 27%: excellent performance across full range of own-manufactured products and traded goods
- c.5% from selling price increases and a surcharge implemented to mitigate raw material price inflation
Surcharge successfully recovering higher raw material costs, but dilutive to gross margin percentage
Profit before tax up 37% vs H1 2019, driven by higher sales volumes and the impact of operational gearing
Capex of £7.3 million includes c.£2 million to expand extrusion capacity
Strong balance sheet and liquidity, with pre-IFRS 16 net cash of £1.3 million (H1 2020: net debt of £23.5 million)