Source - Alliance News

Eurocell PLC on Tuesday launched a new share buyback programme, as it said its 2023 financial results will be in line with market expectations.

Eurocell is an Alfreton, England-based manufacturer, recycler and distributor of window, door and roofline PVC products.

It said the £5 million share buyback programme will be conducted by broker Peel Hunt LLP and begin on Tuesday. The shares repurchased will be cancelled to reduce share capital and increase earnings per share.

The stock was up 0.6% to 127.75 pence on Tuesday in London, giving a market capitalisation of £143.2 million.

Eurocell said it had £400,000 in net cash on December 31.

Sales in 2023 totalled £365 million, down 4.2% on £381.2 million in 2022, the company said. The annual decline worsened as the year went on, with sales down by 2% in the first half and down 6% in the second.

By division, sales in Profiles and Building Plastics both were down by 4% in the full year but with a different calendar mix. Profiles sales were down just 1% in the first half but 8% in the second, while Building Plastics sales were down 3% in the first half and 6% in the second.

Eurocell said Profiles and Building Plastics both suffered from reduced repair, maintenance and improvement activity in the UK. In Profiles, a ‘significantly weaker new-build market’ was partially offset by market-share gains, the company said. Building Plastics also experienced ‘persistent input cost inflation’, particularly for labour and electricity.

A strategy review launched in September is looking at the expansion of Eurocell’s branch network and a simplification of business structures. The conclusions of this review will be given with 2023 result on March 20, the company said.

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