Site navigation

The level of UK economic activity, in particular the state of the repair, maintenance and improvement (‘RMI’) and new-build housing markets, are important drivers of our performance.

EUROCELL MARKETS AND DRIVERS

Private RMI (c.85% Eurocell revenue)plus

Generally mixed market drivers:

- Renovation activity, stimulated by:

  • In H2 2020 – impact of COVID and desire to improve / extend homes drove a strong RMI market
  • More generally – pension draw down and consumer desire for maintenance free property
  • Or change of family circumstances

- Consumer confidence / uncertainty

  • Unclear how COVID impact will develop in 2021
  • Potential for significant level of redundancies
  • Brexit risk and other macro factors

Generally stronger Eurocell drivers:

- Increase propositions in EBP

  • New larger format stores
  • Maturing branches
  • Conservatory roof development
  • Outdoor living products
  • Retail proposition

- Sales of windows through branches

- Strong market and competitive position with trade fabricators serving the RMI market in Profiles

New build (c.10% Eurocell revenue)plus

Generally mixed market drivers:

- In H2 2020 – high levels of mortgage approvals

- Help to Buy continues to support demand, but restricted to first time buyers from 2021

- Large builders maintaining conversions

- Long term shortage of housing may attract government intervention to boost volumes

- Public sector: Right to Buy enables housing tenants to buy their homes at a discount COVID stamp duty holiday ends March 2021

- Macro – affordability remains a key issue

Generally stronger Eurocell drivers:

- Continue to benefit from differentiated specifications

- Strong market and competitive position with new build fabricators

- Low cost fabricators leaving market and work being taken by Eurocell fabricators

- Growth of Cavalok cavity closer product (65% share) driving contact with house builders

- Vista increasing market share of doors

Commercial (c.5% Eurocell revenue)plus

Generally mixed market drivers:

- Slow to return post COVID in  H2 2020

- Continued hesitancy caused by delays to funding release from government

Generally stronger Eurocell drivers:

- Only brand maintaining a sizable salesforce displacing aluminium with PVC

- Better U-values and 30% cheaper

- More fabricators working in commercial

Despite generally mixed signals and a significant level of uncertainty over how markets will develop in 2021, we have good potential to outperform – capitalising on our strong market positions and clear strategy.

EXTERNAL MARKET DATA

GDPplus

After an estimated fall of 10% in 2020, real UK GDP is forecast to grow by 5% in 2021.

Interest ratesplus

UK interest rates remain at all time low of 0.1%.

Constructionplus

Total construction activity was down 14% in 2020, but is forecast to recover and grow by 14% in 2021 and 5% in 2022 (i.e. 2021 is forecast to be 2% down on 2019).

Housing marketplus

Total activity housing was down 20% in 2020, but is forecast to recover and grow by 15% in 2021 and 7% in 2022 (i.e. 2021 is forecast to be 7% down on 2019).

The private housing RMI1 market was down 12% in 2020, but is forecast to recover and grow by 10% in 2021 and 3% in 2022 (i.e. 2021 is forecast to be 3% down on 2019).

Sources: Bank of England forecasts for the UK economy  (published February 2021), Construction Industry Forecasts 2020-22 (published January 2021).

Eurocell Revenue by Market (%)

Private home improvement and, increasingly, new build housing are currently the most important market segments for Eurocell.

CPA Construction Industry Forecasts (2020-2022)

Total construction output growth

 

Total housing growth

Private housing RMI growth

line

Cookie policy

Eurocell's website uses cookies. By continuing to browse you are agreeing to our use of cookies. Click here for more information.