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
