19 March 2026

EUROCELL PLC (Symbol: ECEL)

PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2025

Resilient financial performance; Alunet acquisition performing strongly

Eurocell plc, the leading UK manufacturer and distributor of window and door products to the trade, today announces its preliminary results for the year ended 31 December 2025.

Highlights

·    Adjusted operating profit up 6%, driven by a strong contribution from Alunet (acquired in March 2025) and effective cost control, partially offset by lower organic sales volumes, labour cost inflation and investment in strategic initiatives

·    Adjusted profit before tax down 5%, reflecting higher finance costs following the Alunet acquisition

·    Continuing focus on operational improvements, cost reduction and cash flow management

·    Further progress with five-year strategy

·    Driving shareholder returns through a combination of ordinary dividends and share buybacks, with total returns of £11.4 million for 2025

·    Will Truman appointed Chief Executive Officer (CEO) on 9 February 2026

Key financial performance measures	2025	2024	Change
Revenue (£ million)	403.5	357.9	13%
Underlying measures (1)
Adjusted operating profit (£ million)	24.1	22.8	6%
Adjusted profit before tax (£ million)	19.0	20.0	(5)%
Adjusted basic earnings per share (pence)	14.6	14.4	1%
Reported measures
Operating profit (£ million)	17.3	16.6	4%
Profit before tax (£ million)	12.2	13.8	(12)%
Basic earnings per share (pence)	9.5	9.8	(3)%
Total dividends per share for the year (pence)	6.4	6.1	5%
Capital investment (£ million)	12.5	10.3	21%
Net cash generated from operating activities (£ million)	48.4	44.2	10%
Net debt (£ million) (2)	98.2	62.5	(35.7)
Net debt, pre-IFRS 16 (£ million) (2)	22.1	3.1	(19.0)

 

Resilient financial performance

·    Group sales 13% above 2024, or flat excluding Alunet, with organic volumes 2% lower

·    Profiles division sales up 1% on 2024, with volumes 2% lower, reflecting reduced RMI ⁽³⁾ activity through our trade fabricators, partially offset by some modest improvement in the new build housing market

·    Branch Network division sales down 1% on 2024, with volumes 2% lower, reflecting general Branch Network sales to the RMI market down 6%, offset by further progress with our strategic initiatives (see below)

·    Alunet post-acquisition sales of £46.7 million in the 10 months to 31 December 2025, representing growth of 28% over the corresponding March to December period in 2024, driven by market share gains

·    Adjusted operating profit up 6% vs 2024, reflecting a strong contribution from Alunet and effective cost control, partially offset by:

-    Lower organic sales volumes and competitive pressure on selling prices in the branches

-    Continued labour and other overhead cost inflation, including the increases to employers' National Insurance and the National Living Wage from April 2025

-    Further targeted investment to maintain momentum in strategic initiatives, including the new branch opening programme (see below)

·    Reported operating profit up 4% vs 2024 and reported profit before tax down 12%, after non-underlying items of £6.8 million ⁽¹⁾

·    Strong balance sheet, with pre-IFRS 16 net debt of £22.1 million down from £29.0 million at 30 June 2025 (31 December 2024: £3.1 million), representing leverage of 0.7x pre-IFRS 16 EBITDA ⁽⁴⁾

-     Initial consideration for Alunet of c.£22m substantially funded from debt facility

-   Net cash generated from operating activities of £48.4 million up 10% vs 2024, reflecting good cash management

·    Driving shareholder returns through a combination of ordinary dividends and share buybacks

-     Interim dividend paid in October 2025 of 2.3 pence per share up 5% (2024: 2.2 pence per share)

-     Proposed final dividend of 4.1 pence per share (2024: 3.9 pence per share), resulting in total dividends for the year of 6.4 pence per share (2024: 6.1 pence per share), up 5% and totalling £6.4 million (2024: £6.2 million)

-     £5 million buyback announced in March 2025 now complete

-   Total returns announced for 2025 of £11.4 million (equivalent to a yield ⁽⁵⁾ of c.8%), which followed total returns for 2024 of £21.2 million (including a buyback of £15 million and equivalent to a yield of c.14%)

-     Intend to continue share buybacks, assuming no prolonged impact from the situation in the Middle East and subject to maintaining a strong financial position

Progress with strategic initiatives

·    New branches: 2 opened at the end of 2024 plus 7 new sites and 6 relocations completed in 2025

-    Sales from new branches in 2025 of £3.3 million

-    Creates a short-term profit drag (operating loss of £1.1 million in 2025), but drives longer-term profit growth

·    Windows and doors: accelerated roll-out, with all 215 branches live on the programme from July (90 live at the end of 2024), driving sales of £30.3 million, up 12% on 2024 and up 26% on 2023, the base year for the strategic plan

·    Digital growth: e-commerce sales of £6.6 million, up 40% on 2024, with a strong operating profit margin

·    Garden rooms: sales of £9.6 million up 9% on 2024, with an improving operating profit margin

·    Business effectiveness: ongoing operational improvements and cost reduction

-    Previously announced programmes implemented in H1 2025, including Branch Network restructuring, deliver annualised cost savings of c.£4 million

-    Continuing project to modernise IT infrastructure, with transition to new systems expected at the end of 2026

Derek Mapp, Chair of Eurocell plc said:

"Our financial performance in 2025 was resilient, in the context of trading conditions that remained subdued. We delivered an increase of 6% in adjusted operating profit despite lower organic volumes, thanks to a strong contribution from Alunet and effective cost control. Our cash generation was good and our financial position remains strong.

"We have continued to invest to maintain momentum with our strategy and we are planning to deliver further progress in 2026. The acquisition of Alunet in March is a compelling strategic fit for Eurocell and the business is performing strongly under our ownership.

"Demand in the RMI market remains sluggish, and we are therefore continuing to focus on operational improvements and cost control. The potential impact of the evolving situation in the Middle East is difficult to assess at this time, but the medium and long-term prospects for the UK construction market remain attractive and we are well positioned to drive sustainable growth in shareholder value.

"Finally, the recent appointment of Will Truman as CEO will bring both valuable stability and an injection of pace, as we continue to progress our strategy."

Will Truman, CEO of Eurocell plc said:

"I am delighted to be leading Eurocell. We have a strong business with a clear strategy, and I look forward to working with the team to drive opportunities and accelerate our growth."

 

Notes

(1)   Non-underlying items of £6.8 million in 2025 comprise strategic IT project costs of £4.2 million (including cloud computing and internal resourcing costs), restructuring costs of £1.8 million, plus Alunet acquisition and certain other costs of £0.8 million. Non-underlying items of £6.2 million in 2024 include £2.2 million of strategic IT project costs, a £3.2 million non-cash right-of-use asset impairment charge and £0.8 million of Alunet acquisition costs.

(2)  Net debt is bank overdrafts, borrowings, deferred consideration and lease liabilities less cash and cash equivalents. Pre-IFRS 16 net debt excludes lease liabilities and is provided as our financial covenants are measured on this basis.

(3)   RMI is repair, maintenance and improvement.

(4)   Pre-IFRS 16 EBITDA is stated inclusive of operating lease rentals under IAS 17 Leases.

(5)   Yield calculated as total returns divided by average market capitalisation for the year.

 

 

Analyst presentation

There will be an audiocast presentation for analysts and investors at 9am today. The presentation can be accessed remotely via a live audiocast link as follows: https://streamstudio.world-television.com/782-2007-43069/en

 

 

Alternatively, you can join via conference call as follows:

Dial-in	+44 203 481 4247
Toll free	+44 800 260 6466
Conference ID: Eurocell Full Year Results	4912001

 

A copy of the presentation will be made available from 7am on 19 March on the Group's website: https://investors.eurocell.co.uk/investors/

Following the presentation, a recording of the audiocast will also be made available on the Group's website (link above).

 

CHAIR'S STATEMENT

Introduction

Against a weak market backdrop, Eurocell delivered a resilient financial performance for the year, with adjusted operating profit ahead of 2024.

The progress we are making in the business is testament to the commitment, hard work and dedication of our teams in every part of the Group, and I would like to offer, on behalf of the Board, my sincere thanks to them all.

Financial performance

Adjusted operating profit was up 6% at £24.1 million (2024: £22.8 million), with the acquisition of Alunet and further progress with our strategic initiatives offsetting the impact of weakening markets. Adjusted profit before tax was down 5% at £19.0 million, reflecting higher interest costs on debt arising following the acquisition.

The business continued to generate good cash flows, and the acquisition of Alunet in March 2025 was funded primarily from our debt facility. Pre-IFRS 16 net debt at 31 December 2025 was £22.1 million, down from £29.0 million at 30 June 2025 (31 December 2024: £3.1 million). We have a strong balance sheet and good headroom on our debt facility, which was refinanced in March 2026.

Capital allocation

In line with our strategy, significant investments in the next 12 months include delivering the project to modernise our IT infrastructure, where we expect transition at the end of 2026.

We are committed to driving shareholder returns through a combination of ordinary dividends and supplementary distributions (currently via share buybacks) where appropriate.

The £5 million share buyback announced in March 2025 is now complete. Our intention remains to continue share buybacks, assuming no prolonged impact from the situation in the Middle East and subject to maintaining a strong financial position.

We paid an interim dividend in October 2025 of 2.3 pence per share, up 5% on the prior year (2024: 2.2 pence per share). The Board proposes a final dividend of 4.1 pence per share (2024: 3.9 pence per share), which results in total dividends for the year of 6.4 pence per share (2024: 6.1 pence per share), up 5% and totalling £6.4 million (2024: £6.2 million). Total returns announced for 2025 are therefore £11.4 million, equivalent to a yield of c.8%. This follows total returns for 2024 of £21.2 million (including a buyback of £15 million), equivalent to a yield of c.14%.

Strategy and acquisition of Alunet

Alunet is a highly complementary acquisition and a good strategic fit for Eurocell, reflecting the growth of aluminium fabrication for windows and doors. The acquisition enhances our leadership position in fenestration by expanding the Group's aluminium offering, with a wider range of products and ownership of our own aluminium system, and also improves our offering in composite doors. The Alunet team has strengthened the Group's management and I was delighted to welcome all 200 Alunet employees to the Eurocell Group in March.

Our strategy, launched at the beginning of 2024, identifies an ambitious pathway to building a £500 million revenue, £50 million operating profit business, generating a 10% operating profit margin, over a five-year period. We have made further progress with our strategic initiatives, but reported financial results so far have been below our original projections, impacted by weakening demand. However, with a strong contribution from Alunet, we are confident that our targets remain achievable, although the timing and pace of market recovery will continue to be a factor in determining when we achieve our goals.

The Business Review includes an update on progress with our key strategic initiatives.

Board changes and governance

As previously announced, Darren Waters stepped down as Chief Executive Officer (CEO) on 9 February 2026. The Board's view is that to achieve our strategic objectives in this critical year, it is in the best interests of the Company to have surety of strong leadership and a seamless handover, and therefore Will Truman was appointed as CEO with immediate effect.

Will was CEO at Imagesound for 9 years up to April 2023, having served as Chief Financial Officer (CFO) for 7 years prior to that. Previously, he was an Associate Director within Transaction Services at KPMG. I am pleased that Will has agreed to step into this role. Having served on our Board as a Non-executive Director since 2023, he has a deep understanding of the Group, its culture, and its strategic objectives. The Board is confident Will's appointment will bring both valuable stability and an injection of pace, as we continue to progress our strategy.

Will vacated his role as CFO Designate and we are grateful that Michael Scott has agreed to postpone his previously announced retirement and continue as CFO, whilst the Board completes a full and rigorous recruitment process to identify a permanent CFO for the business.

In order to balance the workload across our Non-executive Directors, Angela Rushforth will take over as Chair of the Remuneration Committee from Alison Littley, with effect from the AGM on 14 May 2026. Alison will continue in her position as Senior Independent Non-executive Director and Chair of the Social Values and ESG Committee.  

Finally, I can confirm that as a Board, we are committed to the highest standards of corporate governance and ensuring effective communication with shareholders.

 

Derek Mapp

Chair

BUSINESS REVIEW

INTRODUCTION

Trading conditions remained subdued in 2025, with challenging macroeconomic conditions and weak consumer confidence continuing to impact demand in both the repair, maintenance and improvement market (RMI) and new build housing. These trends were compounded in the fourth quarter of the year, with increasing uncertainty over the Autumn Budget announcements driving a further slowdown in activity.

Group revenues for 2025 were up year-on-year, enhanced by the acquisition of Alunet in March, which continues to perform strongly. Organic revenues for the year were level with 2024 and include further progress with our growth strategy, which we are pleased to see coming through in the sales performance of our key initiatives.

We have faced ongoing competitive pressure on selling prices in the branches, as well as overhead cost inflation across the business. Our focus remains on further operational improvements and cost reduction initiatives to drive greater efficiencies and to mitigate against the impact of weaker markets. We are also driving opportunities to accelerate the pace of execution across our strategic initiatives.

Further details of our financial and operating performance, together with an update on the progress with implementation of our five-year strategy, including the acquisition of Alunet, are set out below.

FINANCIAL RESULTS

Sales for the year were £403.5 million, up 13% on 2024, or flat excluding Alunet, with organic volumes 2% lower. In the organic business, lower underlying volumes were partially offset by further progress with our strategic initiatives, including window and door sales, new branches, e-commerce activity and garden rooms. At Alunet, market share gains have driven strong sales growth.

Adjusted operating profit was £24.1 million, up 6% on 2024. This reflects a strong contribution from Alunet and effective cost control, partially offset by lower organic volumes, competitive pressure on selling prices in the branches, labour cost inflation and further investment in our strategic initiatives.

Net cash generated from operations was £48.4 million, up 10% on 2024, reflecting our continued focus on cash management.

Further information on our financial performance is included in the Chief Financial Officer's Review.

OPERATIONAL PERFORMANCE

Production

Extrusion performance was consistent throughout 2025 and the level of output stable, benefiting from process improvements and increased preventative maintenance. We have a programme of initiatives to drive further operational improvements (see Business Effectiveness below) and we expect these benefits to begin to materialise in 2026, and thereafter as volumes increase.

Recycling

We are the leading UK-based recycler of PVC windows, saving the equivalent of c.3 million window frames from landfill each year. Our use of recycled materials in production remains substantial at 30%, driving lower carbon emissions and typically reducing costs through the cycle, compared to the use of virgin material. A slight decrease on 2024 (32% usage) reflects product mix and lower volumes, as well as some unscheduled plant downtime caused by equipment breakdowns. We have increased our programme of preventative maintenance in the recycling facilities to reduce the risk of future breakdowns.

To further improve the effectiveness of our recycling operations, in February 2026 we began a project to consolidate our two recycling plants onto the existing facility at Ilkeston (see Business Effectiveness below). 

Recycling feedstock purchase prices have remained stable, reflecting the action we have taken to secure additional cost-effective sources of supply.

Health and safety

The safety and well-being of our employees, contractors and branch customers is our number one priority.

Following improved safety results in 2024, our Lost Time Injury Frequency Rate ('LTIFR') slipped back to 6.4 in 2025 (2024: 4.1). In the light of these results, we have made some changes to health and safety leadership and our approach. A new Head of Safety, Health, Environment and Quality ('SHEQ') joined the business in Q4 and has led the development of an improved health and safety plan, focussing on the behaviours that will drive a more proactive safety culture across the Group.

In addition, following the acquisition, we have ensured critical health and safety policies and controls are in place across the Alunet businesses.     

STRATEGY

At the beginning of 2024 we launched our ambitious strategy, which reset our objectives for the business. We identified a pathway to building a £500 million revenue, £50 million operating profit business, generating a 10% operating margin, over the five-year period to December 2028. Our strategy is built around four pillars: Customer Growth, Business Effectiveness, People First and ESG Leadership. The following paragraphs summarise these pillars and our progress with the initiatives which support them.

When we launched the strategy, a modest but sustained recovery in our core markets was generally anticipated for the earlier years of our five-year plan. However, trading conditions have in fact deteriorated since then and remain weak. As a result, whilst we have made progress with our strategic initiatives, overall sales and operating profits reported to date have been below our original projections. We are therefore now driving opportunities to accelerate the pace of execution on our growth strategy and we are confident that, whilst ambitious, these financial targets remain achievable, with the Alunet acquisition providing a significant offset to continued market weakness. However, the timing of market recovery and the pace at which demand picks-up will continue to be a factor in determining when we achieve our goals.

Customer Growth

Our aim is to become the trade customer's preferred choice in all markets and segments where we operate. We believe the biggest opportunity for growth is expansion of the Branch Network, including opening new branches and significantly increasing the sale of windows and doors, underpinned by investment in digital marketing, to raise awareness of our products and home improvement solutions and acquire new customers.

Branch Network

We estimate that the optimum Branch Network size is at least 250 sites, which was confirmed through modelling and analysis work with our location planning partner. This work identified an additional c.50 priority locations.

We opened 2 branches in Q4 2024, followed by 7 in 2025, primarily in the South of England, delivering incremental sales of £3.3 million in 2025. We now have 215 sites in operation and plan to add c.30 new sites over the next three to four years, including at least 5 in 2026.

We are supplementing the opening programme with several branch relocations, where the current site is sub-optimal in terms of size or location, and therefore a constraint to our growth objectives. Following 2 site relocations in 2024, we completed another 6 in 2025.

New branches and relocations include a refreshed branch exterior, an improved interior layout and are supported with strong pre-opening recruitment and marketing campaigns. This programme therefore creates a short-term operating profit drag (£1.1 million in 2025), but drives longer-term profit growth.

Windows and doors

Following encouraging early results with our initiative to sell more windows and doors through the network, we accelerated the site roll-out in 2025. All 215 branches were live on the programme by July (90 live at the end of 2024), driving sales of £30.3 million, up 12% (£3.3 million) on 2024 and up 26% (£6.2 million) on 2023, the base year for our strategic plan.

In addition, we have now built a national fabricator network across both aluminium and PVC to service the branches, which exclusively sources bar length material from Eurocell. The project provides incremental growth opportunities for our fabricator partners, and we continue to work with them to secure additional capacity.

Extended living spaces

Extended living comprises garden rooms and extensions. In 2025, we delivered garden room sales of £9.6 million, up 9% on 2024, supported by the introduction of four new designs. Extension sales were £1.2 million, compared to £1.0 million in 2024.

Since launching these product ranges, we have delivered good sales growth, but operating margins have been below our expectations, due to the cost of lead generation, plus other selling and installation costs. Following a review in H2 2025, we identified opportunities to increase garden room sales and margins and capture further growth.

With extensions, our review determined that higher costs are typically driven by more complex installations and we therefore concluded to exit this initiative, on the basis that returns were unlikely to meet our target level.

Profiles (fabricators)

In Profiles, we believe we are now the leading supplier of rigid PVC profile to the UK market. Our objective is to protect our existing business and maintain our value-added service propositions that support customers. We will continue to leverage our leading position with housebuilders and commercial developers to ensure we maintain specifications to support a robust pipeline of work for our fabricator customers. We are recognised across the industry as the leading technical systems house and will continue to exploit this advantage.

The windows and doors initiative also provides growth opportunities in Profiles, as it pulls through increased profile sales via fabricator partners and increased composite door sales through our entrance doors businesses.

As described below, the acquisition of Alunet in March 2025 complements our proposition to fabricators, by providing a one-stop shop for PVC and aluminium door and window systems. As a result, 14 Eurocell PVC fabricators have now switched their aluminium requirements to Alunet.

Digital growth

We have an ambitious digital strategy to drive more relevant trade customer traffic to our website, as well as build homeowner brand awareness.

We have invested to drive organic web traffic growth, increased our digital paid media, improved our use of AI to support customer targeting and developed our web proposition with initiatives such as one hour click-and-collect. As a result, we have grown e-commerce sales to £6.6 million in 2025 (2024: £4.7 million), and we are confident that we will achieve more progress in 2026.

This investment has also attracted more new trade accounts to our branches, with 11,596 new spending accounts added in 2025 (2024: 10,785), and driven more homeowner leads to buy big ticket items.

Business Effectiveness

Our objective is to make Eurocell a lean and efficient business. We are upgrading our business systems and streamlining structures and processes to increase efficiency and improve customer experience. Given that the near-term market outlook is likely to remain challenging, we are continuing to prioritise operational improvements and cost reduction.

Continuous improvement, efficiencies and cost reduction

In April 2025, we restructured the Branch Network by removing a layer of regional operational management, reducing the size of the salesforce and closing a small number of underperforming branches, generating annualised cost savings of c.£2 million.

In May 2025, we announced further overhead cost reductions, including restructuring now completed in Operations and Shared Services, generating annualised cost savings of c.£2 million.

In February 2026, to further improve the effectiveness of our recycling operations, we began a project to consolidate our two recycling plants onto the existing facility at Ilkeston. The project requires relocation of certain critical equipment from the site at Selby, plus investment in the Ilkeston plant to eliminate single points of failure, enhance the layout and improve working conditions. We expect to cease operations at Selby and begin processing at Ilkeston in H2 2026, with the Selby site exit to be concluded by the end of the year. Capital investment is expected to be c.£2.6 million, with annualised cost savings of c.£1.5 million running from 2027. Non-underlying charges are expected to be in the region of £3 million, including non-cash asset write downs of c.£1.5 million.

Systems replacement

As previously announced, we are in the process of replacing our Enterprise Resource Planning ('ERP') system, including a new trade counter system in the Branch Network.

The new trade counter system will transform the way we interact and transact with customers in the branches, primarily through process simplification (including electronic point-of-sale technology). The new ERP system will support all other functions of the business and comes with built-in analytics to facilitate data-driven decisions.

We expect to transition to the new systems at the end of 2026. Whilst a little later than previously envisaged, we are confident in this timing, with total non-underlying costs for the project now estimated at c.£13 million (previously £10 million) over the 2024-2027 period. Associated capex costs remain unchanged at c.£1 million.

People First

With People First, our objective is to make Eurocell a great place to work, through a focus on health and safety, an enhanced employee value proposition, improved levels of engagement and effective talent management.

For our employee value proposition, in 2025 we developed a much-improved wellbeing framework and better induction and onboarding programmes. In 2026, we will seek to better align and improve our reward and recognition schemes.    

On engagement, we launched the Eurocell Colleague Forum in 2025, to provide a stronger link with senior leadership at local and national levels. Our 2025 externally administered employee engagement survey results demonstrate progress in some areas, but also that more work on engagement is required. Action plans responding to the survey findings are in progress, including development of the Forum and simplification of processes (facilitated by the new systems).

Effective talent management includes talent development, succession planning and an increasing use of apprenticeships. We have launched a revised apprenticeship offer and will begin a new leadership development framework in 2026, affiliated to the Institute of Leadership and Management.

ESG Leadership

Our ambition is to be a leading responsible company. Eurocell is already a leader in PVC recycling, and looking ahead, we aim to excel in all areas of ESG.

In 2024, we completed the work to determine a path to reach Net Zero by 2045. In 2025, our targets were independently verified by the Science Based Targets initiative ('SBTi') and we published our Transition Plan. We now intend to progress decarbonisation initiatives in line with the Plan.

ACQUISITION OF ALUNET

In March 2025, we announced the acquisition of Alunet for consideration of £29 million on a debt/cash free basis. The acquisition advances our strategy, significantly strengthening the Group's position in residential aluminium systems and composite doors, and adds aluminium garage doors to our portfolio of home improvement products.

Alunet has grown rapidly since its establishment in 2013 and under Eurocell's ownership we expect to leverage our leading market positions in new build, trade fabrication and distribution, to help the business reach its full potential.

In the post-acquisition period (10 months to 31 December 2025), Alunet delivered sales of £46.7 million, up 28% over the corresponding period in 2024, with growth driven primarily by market share gains. Adjusted operating profit in the post-acquisition period was £4.8 million, which is up £1.8 million on 2024.

We expect another year of good growth in 2026, driven by further market share gains and new product introductions, alongside capturing group-wide synergies and manufacturing efficiencies.

Full financial details of the transaction (including the potential for additional performance-related payments) and trading performance are set out in the Chief Financial Officer's Review.

SUMMARY AND OUTLOOK

Our financial performance in 2025 was resilient, in the context of trading conditions that remained subdued. We delivered an increase of 6% in adjusted operating profit despite lower organic volumes, thanks to a strong contribution from Alunet and effective cost control. Our cash generation was good and our financial position remains strong.

We have continued to invest to maintain momentum with our strategy and we are planning to deliver further progress in 2026. The acquisition of Alunet in March is a compelling strategic fit for Eurocell and the business is performing strongly under our ownership.

Demand in the RMI market remains sluggish, and we are therefore continuing to focus on operational improvements and cost control. The potential impact of the evolving situation in the Middle East is difficult to assess at this time, but the medium and long-term prospects for the UK construction market remain attractive and we are well positioned to drive sustainable growth in shareholder value.

 

 

CHIEF FINANCIAL OFFICER'S REVIEW

		2025	2024
Underlying measures(1)		£m	£m
Revenue		403.5	357.9
Gross profit		205.3	188.3
Gross margin (%)		50.9%	52.6%
Overheads		(153.8)	(140.2)
Adjusted(1) EBITDA		51.5	48.1
Depreciation and amortisation		(27.4)	(25.3)
Adjusted(1) operating profit		24.1	22.8
Finance costs		(5.1)	(2.8)
Adjusted(1) profit before tax		19.0	20.0
Taxation		(4.2)	(4.6)
Adjusted(1) profit after tax		14.8	15.4
Adjusted(1) basic earnings per share (pence)		14.6	14.4
Reported measures
Non-underlying items		(6.8)	(6.2)
Tax on non-underlying items		1.6	1.3
Reported operating profit		17.3	16.6
Reported profit before tax		12.2	13.8
Reported profit after tax and profit for the year		9.6	10.5
Reported basic earnings per share (pence)		9.5	9.8

(1)   See Alternative Performance Measures below.

INTRODUCTION

The weakening trends experienced at the start of the year in the RMI market continued throughout 2025. Against this backdrop, we delivered a resilient financial performance for the year.

Whilst organic sales volumes were below 2024, we have proactively managed our gross margin and cost base to offset significant cost inflation and support investment in our strategy. As a result, organic sales and gross margin for the year were both level with 2024 and we reported only a small increase in organic operating costs, despite significant inflationary pressure. Alunet has performed well since the acquisition in March 2025, and is the key driver of the Group's overall sales and adjusted operating profit increases for the year.

We continue to focus on efficient working capital management and delivered robust cash flow generation for the year. We retain a strong balance sheet with good headroom on our debt facility, which was refinanced in March 2026.

We are committed to driving shareholder returns through a combination of ordinary dividends and share buybacks, subject to maintaining a strong financial position. Total returns announced for 2025 are £11.4 million, equivalent to a yield of c.8%.

Since we launched our strategy at the beginning of 2024, our markets have been weaker than anticipated. However, with a strong contribution from Alunet, we are confident that our targets remain achievable, although the timing and pace of market recovery will be a factor in determining when we achieve our goals.

REVENUE

Revenue for 2025 was £403.5 million, 13% above 2024 (£357.9 million), or flat excluding Alunet, with organic volumes down 2%. In the period from the acquisition at the beginning of March to 31 December 2025, Alunet added sales of £46.7 million to the Group. In the organic business, lower underlying volumes were partially offset by selling price increases and further progress with our strategic initiatives. See Divisional Performance for further information on revenues.

GROSS MARGIN

Gross margin was 50.9% in 2025, or 52.6% excluding Alunet (2024: 52.6%). In the organic business, we implemented selling price increases to recover cost inflation, although competition for limited demand continues to drive pressure on selling prices in the Branch Network. However, we continued to proactively manage our gross margin and secured stable input cost prices, including PVC resin, recycling feedstock and electricity.

DISTRIBUTION COSTS AND ADMINISTRATIVE EXPENSES (OVERHEADS)

Underlying overheads for 2025 were £153.8 million, up 10% on 2024 (£140.2 million), or up 1% excluding Alunet, demonstrating effective cost control. We have continued to experience cost inflation, particularly for labour, which includes the increases to employers' National Insurance and the National Living Wage from April 2025. Overheads also include targeted investment to maintain momentum in our strategic initiatives, including the new branch opening programme.

These increases were partially offset by the previously announced cost savings, including the Branch Network restructuring completed in April 2025.

ALTERNATIVE PERFORMANCE MEASURES

Alternative performance measures are used alongside statutory measures to facilitate a better understanding of financial performance and comparison with prior periods, and in order to provide audited financial information against which the Group's bank covenants, which are all measured on a pre-IFRS 16 basis, can be assessed.

Adjusted EBITDA, adjusted operating profit and adjusted profit before tax all exclude non-underlying items. Adjusted profit after tax and adjusted earnings per share exclude non-underlying items and the related tax effect. Pre-IFRS 16 EBITDA is stated inclusive of operating lease rentals under IAS 17 Leases. Pre-IFRS 16 net debt is defined as total borrowings, deferred consideration and lease liabilities less cash and cash equivalents, excluding the impact of IFRS 16 Leases.

We classify some material items of income and expense as non-underlying when the nature of the circumstances merit separate presentation. Alongside statutory measures, this facilitates a better understanding of financial performance and comparison with prior periods.

NON-UNDERLYING ITEMS

Non-underlying items for 2025 of £6.8 million comprise: strategic IT expenses of £4.2 million, including cloud computing and internal resourcing costs, which are expensed as incurred rather than capitalised as intangible assets; restructuring costs of £1.8 million, being redundancy payments and related employee benefit termination costs in connection with restructuring completed in the year; plus Alunet acquisition and certain other costs of £0.8 million.

Non-underlying items of £6.2 million in 2024 include £2.2 million of strategic IT project costs, a £3.2 million non-cash right-of-use asset impairment charge plus £0.8 million of Alunet acquisition costs.

Our strategic IT projects comprise a new customer-facing website and an employee management system (both completed in 2024) and, most significantly, the replacement of our Enterprise Resource Planning ('ERP') system. Total expected non-underlying costs for the system replacement are in the region of £13 million over the 2024-27 period, with transition to the new systems expected at the end of 2026. Non-underlying costs incurred on the project up to 31 December 2025 are £6.4 million (comprised of the 2024 and 2025 costs described above).

DIVISIONAL PERFORMANCE - PROFILES

 

			2025 £m	2024 £m	Change %
Third-party revenue			146.7	146.1	1%
Inter-segmental revenue			61.5	63.7	(3)%
Total revenue			208.2	209.8	(1)%
Adjusted(1) operating profit			17.4	19.4	(10)%
Operating profit			14.0	14.6	(4)%

(1)   Adjusted performance measures are stated before non-underlying items.

Profiles third-party revenue for the year was £146.7 million, 1% higher than 2024 with volume down 2%, reflecting reduced RMI activity through our trade fabricators, partially offset by some modest improvement in the new build housing market. Cost-of-living pressures, high interest rates and falling house prices have all had a significant adverse effect on our end markets.

Profiles adjusted operating profit for 2025 of £17.4 million was 10% below 2024, reflecting lower sales volumes plus labour and other cost inflation, with stable raw material and electricity costs.

Reported operating profit is stated after non-underlying costs of £3.4 million in 2025, comprised of strategic IT projects and restructuring costs. Non-underlying costs of £4.8 million in 2024 included strategic IT projects, a non-cash right-of-use asset impairment charge and acquisition expenses.

 

DIVISIONAL PERFORMANCE - BRANCH NETWORK

 

			2025 £m	2024 £m	Change %
Third-party revenue			210.1	211.8	(1)%
Inter-segmental revenue			0.4	0.5	(20)%
Total revenue			210.5	212.3	(1)%
Adjusted(1) operating profit			3.4	6.5	(48)%
Operating profit			0.4	5.1	(92)%

(1)   Adjusted performance measures are stated before non-underlying items.

Third-party revenues in the Branch Network for 2025 were £210.1 million, 1% lower than 2024, with volume down 2%. This comprises general RMI volumes in the Branch Network down 6%, with homeowners holding back on discretionary expenditure against a backdrop of macroeconomic uncertainty, offset by the benefits of progress with our strategic initiatives, including window and door sales up 12%, garden rooms up 9% and e-commerce activity up 40%. New branches added sales of £3.3 million in 2025.

Branch Network adjusted operating profit for 2025 was £3.4 million, 48% below 2024, reflecting competitive pressure on selling prices in the branches and higher overheads, which include labour and other cost inflation.

Branch Network overheads also include investment to maintain momentum in our strategic initiatives, including the new branch opening programme, which creates a short-term operating profit drag (c.£1.1 million in 2025), but drives longer-term profit growth. Investment in strategic initiatives also includes marketing (pay-per-click), and central order processing capability for windows and doors, and we expect to leverage this investment and improve margins as volumes grow.

The reported operating profit is stated after non-underlying costs of £3.0 million in 2025, comprised of strategic IT projects and restructuring costs. Non-underlying costs of £1.4 million in 2024 related to strategic IT projects.

DIVISIONAL PERFORMANCE - ALUNET

In March 2025 we announced the acquisition of Alunet in a deal that valued the business at £29 million, based on a multiple of 6.5x Alunet's EBITDA for the year ended 31 December 2024. Initial consideration paid of £22 million was on a debt/cash free basis, and future payments over the next four years could rise to £13 million, contingent upon performance against agreed EBITDA targets. The maximum future payments, if achieved, would result in a total consideration of £35 million, representing a multiple of c.4x Alunet's projected EBITDA for the year ended 31 December 2028.

Approximately £1 million of the initial payment was in the form of ordinary shares in Eurocell plc and satisfied out of shares held in treasury, with the remainder payable in cash, funded from the Group's existing £75 million revolving credit facility.

			2025 £m	2024 £m	Change %
Third-party revenue			46.7	-	n/a
Inter-segmental revenue			-	-	n/a
Total revenue			46.7	-	n/a
Adjusted(1) operating profit			4.8	-	n/a
Operating profit			4.8	-	n/a

(1)   Adjusted performance measures are stated before non-underlying items.

In the period from the acquisition at the beginning of March to 31 December 2025, Alunet external sales were £46.7 million. This represents growth of 28% compared to the corresponding period in 2024, driven by market share gains, particularly in Alunet Systems and Comp Door, which together represent c.75% of Alunet's sales.

Since the acquisition, Alunet Systems has benefited from group synergies and secured new business with 14 Eurocell fabricators, as well as successfully launched the Aluna+ aluminium window system, which complements the new Eurocell Iconiq aluminium roof lantern. Comp Door has continued to acquire new installers, with the new SleekSkin door now representing more than 15% of sales and we expect the business to benefit from cross-selling opportunities and supply chain synergies with Vista.

Alunet post-acquisition adjusted operating profit for 2025 was £4.8 million, which is up £1.8 million on 2024.

The Corporate segment operating profit includes a further underlying charge of £0.4 million relating to the Alunet acquisition, comprising amortisation of acquired intangible assets and the unwind of discounting of future contingent consideration, and a non-underlying charge of £0.4 million relating to acquisition expenses.

OPERATING PROFIT

Adjusted operating profit for 2025 was £24.1 million, up 6% on 2024. This reflects a strong contribution from Alunet and effective cost control, partially offset by lower organic volumes, competitive pressure on selling prices in the branches, labour cost inflation and targeted investment to maintain momentum in our strategic initiatives.

FINANCE COSTS AND TAXATION

Finance costs for 2025 were £5.1 million, which includes incremental interest of approximately £1.0m arising on higher debt following the Alunet acquisition. Finance costs in 2024 were £2.8 million.

The underlying tax charge for 2025 was £4.2 million (2024: £4.6 million). The total tax charge for 2025 was £2.6 million (2024: £3.3 million). The effective tax rate on underlying profit before tax for 2025 of 22% is lower than the standard rate of corporation tax of 25% due to Patent Box relief and the impact of share options exercised during the year.

We were pleased to retain the Fair Tax Mark accreditation in 2025, reflecting our commitment to paying the right amount of tax at the right time.

PROFIT BEFORE TAX AND EARNINGS PER SHARE

Adjusted profit before tax for the year was £19.0 million compared to £20.0 million in 2024, reflecting the increase in adjusted operating profit described above, offset by increased finance costs following the Alunet acquisition.

Reported profit before tax in 2025 was £12.2 million (2024: £13.8 million), reflecting the above less £6.8 million of non-underlying costs (2024: £6.2 million).

Adjusted basic earnings per share were 14.6 pence and diluted earnings per share for the year were 14.5 pence (2024: 14.4 pence and 14.3 pence respectively). Total basic earnings per share were 9.5 pence and total diluted earnings per share were 9.4 pence (2024: 9.8 pence and 9.7 pence respectively).

DIVIDENDS AND SHARE BUYBACKS

The Board is committed to driving shareholder returns through a combination of ordinary dividends and supplementary distributions (currently via share buybacks).

The £5 million share buyback announced in March 2025 is now complete. Our intention remains to continue share buybacks, assuming no prolonged impact from the situation in the Middle East and subject to maintaining a strong financial position.

We paid an interim dividend in October 2025 of 2.3 pence per share, up 5% on the prior year (2024: 2.2 pence per share). The Board proposes a final dividend of 4.1 pence per share (2024: 3.9 pence per share), which results in total dividends for the year of 6.4 pence per share (2024: 6.1 pence per share), up 5% and totalling £6.4 million (2024: £6.2 million). Total returns announced for 2025 are therefore £11.4 million, equivalent to a yield of c.8%. This follows total returns for 2024 of £21.2 million (including a buyback of £15 million), equivalent to a yield of c.14%.

The dividend will be paid on 19 May 2026 to shareholders registered at the close of business on 17 April 2026. The ex-dividend date will be 16 April 2026.

The retained earnings of Eurocell plc as at 31 December 2025 were £33.8 million (2024: £41.2 million). The Company takes steps to ensure distributable reserves are maintained at an appropriate level through intra-Group dividend flows.

CAPITAL EXPENDITURE

Capital expenditure for 2025 of £11.8 million (2024: £10.7 million) includes £3.7 million for new branches and site relocations, but is otherwise largely maintenance in nature.

CASH FLOW

Net cash generated from operating activities was £48.4 million (2024: £44.2 million), reflecting good cash flow generation, including a net inflow from working capital of £3.7 million, comprised of an increase in inventories (£0.2 million), decrease in receivables (£0.9 million) and an increase in payables (£3.0 million). This compares to a net outflow from working capital of £0.2 million in 2024. Net cash generated from operating activities also includes net tax paid in the year of £1.7 million (2024: £3.0 million).

Other cash flow items include payments for capital investments of £12.5 million (2024: £10.3 million), including the net movement on capital creditors of £0.7 million and financing costs paid of £1.9 million (2024: £0.7 million), plus the initial Alunet cash consideration (net of cash acquired) of £20.6 million.

The principal elements of lease payments of £16.4 million (2024: £14.4 million) are presented within cash flows arising from financing activities. The finance elements of lease payments were £2.9 million (2024: £2.1 million).

Dividends paid in the year were £6.2 million, being the 2024 final and 2025 interim payments (2024: dividends paid: £6.1 million). Cash paid under the share buyback programmes, including for shares held in treasury and transaction costs, was £6.0 million (2024: £14.5 million).

NET DEBT

Net debt on a pre-IFRS 16 basis at 31 December 2025 was £22.1 million (31 December 2024: £3.1 million), down from £29.0 million at 30 June 2025, reflecting good cash generation in the second half. Lease liabilities increased by £16.7 million, due to new branches, plus the properties and vehicles acquired with Alunet. Total net debt at 31 December 2025 was £98.2 million (31 December 2024: £62.5 million).

 

	2025	2024	Change
	£m	£m	£m
Cash	6.3	0.4	5.9
Bank overdrafts	-	(3.0)	3.0
Borrowings	(27.7)	(0.5)	(27.2)
Deferred consideration	(0.7)	-	(0.7)
Net debt (pre-IFRS 16)	(22.1)	(3.1)	(19.0)
Lease liabilities	(76.1)	(59.4)	(16.7)
Total net debt	(98.2)	(62.5)	(35.7)

BANK FACILITY

Our activities are funded via our £75 million unsecured Revolving Credit Facility, which was refinanced in March 2026 and now matures in 2030. The facility is provided by Barclays, NatWest and AIB, and is competitively priced. We operate comfortably within the terms of the facility and in compliance with our financial covenants, which are measured on a pre-IFRS 16 basis.

 

Michael Scott

Chief Financial Officer