WHAT WE DOplus
We are a leading manufacturer of rigid and foam PVC profiles, composite and PVC entrance doors for the window and building home improvement sectors. Our manufacturing process uses raw materials including PVC resin and our own produced recycled material.
The Profiles division supplies our manufactured profile to a network of fabricators, who in turn supply end products to installers, retail outlets and house builders.
The Building Plastics division sells, through its network of branches, our manufactured foam products and entrance doors, along with a range of third-party related products, as well as windows fabricated by third parties using products manufactured by the Profiles division. Customers are mainly installers, small builders, roofing contractors and independent stockists.
We recycle both customer factory offcuts (‘post-industrial’ waste) and old windows that have been replaced with new (‘post-consumer’ waste). The recycled material is used to generate brand new extruded plastic products.
HOW WE CREATE VALUEplus
VERTICALLY INTEGRATED MODEL
The coordination of our procurement, manufacturing and distribution processes enables us to capture margin throughout all stages of our value chain.
Our recycling activities help lower material costs and improve product stability.
We operate well-invested and modern extrusion facilities.
We are the UK’s largest window recycler.
Our extensive branch network is a driver of sales growth and market share. It also helps improve manufacturing efficiency, with pull-through demand driving higher factory utilisation.
We are committed to a strategy of continually developing new and existing products.
We support the use of Building Information Modelling (‘BIM’) software, giving architects and contractors access to a library of Eurocell products, making it easier to specify them.
We have a strong brand image and our marketing activities seek to maximise our brand awareness.
PEOPLE AND CULTURE
Our experienced management team have a proven track record of achieving growth.
Our corporate culture is one of openness, trust, encouragement and clarity of purpose. We train and empower our people to help our customers grow their businesses.
Our branches are conveniently located and have readily available inventory, thereby providing excellent service to local customers and national groups alike.
We also strive to help our customers through the provision of technical, business development and marketing support services.
Our initiatives to support sales and deliver high levels of customer service differentiate Eurocell from our competitors. We expect this to drive good sales growth.
We have a track record of solid profitability. We experienced some challenges with incremental volume in 2018, but expect our strong sales growth to drive increased returns.
Expanding the branch network, whilst dilutive until new branches become established, should deliver healthy medium-term results as new branches mature. Increased use of recycled materials can help mitigate raw material pricing pressure.
Increased use of recycled materials can help mitigate raw material pricing pressure.
GOOD CASH GENERATION
Our operating cash flow conversion is good, particularly in Building Plastics, where a high proportion of customers pay at point of sale or shortly thereafter.
This has allowed us to invest in working capital to support sales growth and protect the business from any raw material supply interruption that may take place e.g. due to Brexit.
GOOD RETURN ON SALES
Our strong brand, well-invested facilities and capital-light branch expansion programme deliver a good return on sales.
PROGRESSIVE RETURNS TO SHAREHOLDERS
Our dividend policy, supported by sales growth and cash generation, deliver progressive dividend returns to shareholders.
Our overall strategic objective is to deliver sustainable growth in shareholder value.
We work hard to train and develop our people, and provide rewards commensurate with our goal to be an employer of choice.
Through high-quality products and a strong focus on customer service, we have developed a very loyal customer base.
SMALL BUILDERS AND INSTALLERS
The independent sole traders that visit our branches benefit from the one-stop shop offering we provide.
House builders appreciate the quality of our products and benefit from Eurocell coordinating our fabricators’ offering to meet their requirements.
We aim to make our products as easy as possible to work with, which is very attractive to our direct or indirect installer base.