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+16% (11% excluding acquisitions)

Gross Margin

+0.3% (2015: 51.7%)

Adjusted EBITDA(1)

+5% (2015: £29.7m)

Adjusted Profit before Tax(1)

+5% (2015: £23.0m)

Adjusted EPS(1)

+7% (2015: 18.6p)

Total Dividends (per share)

+8% (2015: 7.9p)

  • Reported profit before tax £23.8m (2015: £19.7m), +21%
  • Cash generated from operations £31.8m (2015: £26.3m), +21%
  • Net debt reduced from £25.9m to £20.3m
  • Proposed final dividend for 2016 of 5.7p per share (2015: 5.2p per share)

(1) Adjusted measures are before non-recurring costs and the related tax effect


  • Expanding the branch network – 159 branches, with 18 new sites in 2016.
  • Successful specifications team – providing customised product solutions unique to Eurocell.
  • 500 new product lines in the branches – objective to become a one-stop shop for our customers.
  • Growing sales of windows through branches and innovative products – Equinox and Skypod.
  • Increasing use of recycled PVC in manufactured products – 14% in 2016 (2015: 9%).
  • Completed acquisitions – Vista Panels in March 2016 and Security Hardware in February 2017.


Our sales grew by +16% (+11% excluding acquisitions), despite a broadly flat RMI market. This was driven by a number of self-help initiatives, including continued investment in the expansion of our branch network and a focus on specific customer groups to provide customised product solutions that are unique to Eurocell.

We have worked hard to maintain our gross margin, with raw material pricing pressure mitigated by price increases implemented in the second half and assisted by continuing manufacturing efficiency gains. Overheads were a little higher than expected, reflecting accelerated investment in the branch network and business development teams, as well as increased logistics costs.

As a result, we reported adjusted profit before tax of £24.3 million, up 5% on last year. Reported profit before tax of £23.8 million is up 21% on last year.

Cash flow generation remains strong, with underlying operating cash flow of £32.2 million (2015: £29.6 million) driving a reduction in net debt to £20.3 million (31 December 2015: £25.9 million). We have a strong balance sheet which provides flexibility and options for the future.

During 2016 we acquired Vista Panels Limited. Vista specialises in the manufacture of composite and PVC entrance doors. The integration is proceeding to plan and the business is performing in line with expectations. In February 2017, we completed the acquisition of Security Hardware Limited, a supplier of locks and hardware primarily to the RMI market, with annual sales of approximately £3 million.


Following the Board changes, in January 2017 we conducted a full review of the Company’s strategy and the fundamental elements of our markets and activities. At the conclusion of this process, we reaffirmed that our overall objective remains to deliver sustainable growth in shareholder value by increasing sales and profits at above market level growth rates.

We have five clear strategic priorities to help us achieve our overall objective:

  • Target growth in market share
  • Expand our branch network
  • Develop innovative new products
  • Increase the use of recycled materials
  • Explore potential bolt-on acquisition opportunities

Further information on our strategic initiatives can be found on our Strategy page.


  • Good financial and strong operating performance.
  • Experienced and settled management team now in place.
  • Strategy confirmed – well setto make further progress in the year ahead.
  • Full year dividend of 8.5p per share.

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