Eurocell plc paid an interim dividend of 2.0 pence per share in October 2023 (£2.2 million). The firm proposed a final dividend of 3.5 pence per share, which results in total dividends for the year of 5.5 pence per share, or £6.0 million, down 49% (2022: 10.7 pence or £12.0 million). The dividend will be paid on 22 May 2024 to Shareholders registered at the close of business on 26 April 2024. The ex-dividend date will be 25 April 2024.
Other financial highlights include:
Group sales down 4% on a strong 2022 comparative period, with volume 6% lower, including:
- Profiles down 4%: reduced RMI(1) and significantly weaker new build activity, partially offset by benefit of market share gains, with volumes 7% below 2022
- Building Plastics down 4%: RMI volumes in our branches 5% below 2022
Increased competition for limited demand leading to pressure on margins in the branch network
Continued input cost inflation, offset with selling price increases where possible:
- Particularly labour, recycling feedstock and electricity, where we operate a rolling 12-month forward hedging policy
- Some easing on input cost pricing through the second half of the year
Adjusted profit before tax from continuing operations down 47% vs 2022
- Lower sales volumes, input cost inflation and margin pressure in the branches, partially offset by selling price increases, operational improvements and cost reduction
Net cash generated from operating activities up 50% vs 2022
- Efficient stock management driving a net working capital inflow of £13.4 million (2022: net outflow £13.1 million)
Strong balance sheet and liquidity, with pre-IFRS 16 net cash of £0.4 million (31 December 2022: net debt of £14.4 million)
- Average pre-IFRS 16 net debt of £9.5 million in 2023 (2022: £17.3 million)
£5 million share buyback programme commenced in January 2024
- As of 15 March 2024, 2.0 million shares purchased under the programme at a cash cost of £2.5 million
