Eurocell Plc Proposed Final Dividend of 7.2 Pence per Share

DividendMax Ltd.

Eurocell Plc Proposed Final Dividend of 7.2 Pence per Share

Eurocell Plc paid an interim dividend of 3.5 pence per share in October 2022. The Board proposes a final dividend of 7.2 pence per share (2021: 6.4 pence per share), which results in total dividends for the year of 10.7 pence per share, up 11% (2021: 9.6 pence per share), reflecting their solid financial performance and a lower tax rate in 2022.

Other Financial Highlights:

  • Continued deployment of commercial strategies, with sales up 12% vs 2021, including:
    • Profiles up 15% and Building Plastics up 10%
    • New build, large contract and RMI(4) project work robust throughout the year
    • Slowdown in smaller discretionary RMI work experienced by trade fabricators and the branch network in H2
  • Price was the significant driver of sales growth in 2022
    • Selling price increases and surcharges recovering unprecedented input cost inflation
    • H2 margins reflected lower volumes and not all cost inflation being fully recovered until early in 2023
  • Cyber incident in July / August, resulted in temporary disruption and some financial impact
    • Incident efficiently resolved, with the business remaining operational throughout
    • Insurance claim partially resolved, with compensation income of £1.1 million recognised in 2022
    • Steps taken to implement further resilience and security measures
  • Adjusted operating profit from continuing operations up 5% vs 2021
    • Adjusted operating profit margin of 8.2% (2021: 8.7%), reflecting the dilutive impact of inflation
  • Adjusted profit before tax from continuing operations up 4% vs 2021, reflecting lower sales volumes, cost control, operating efficiencies and recovery of significant input cost inflation
  • Investment in business growth and resilience, with capex of £12.3 million, including substantial completion of operating capacity expansion and the start of a programme to improve IT infrastructure
  • Strong balance sheet and liquidity, with pre-IFRS 16 net debt of £14.4 million (31 December 2021: £11.0 million)
    • Average pre-IFRS 16 net debt of £17.0 million in 2022

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