A Derbyshire firm which manufactures plastic roof, window and door products, has reported a “robust” set of financial results despite higher overheads and Brexit uncertainty.
In its preliminary results issued to the markets this morning, Eurocell, which is based in Alfreton, said that in the 12 months to December 31 its revenues increased from £253.7 million to £279.1 million.
Meanwhile, the firm, which employs more than 1,000 people at its Derbyshire factory and has branches nationwide, achieved pre-tax profits of £19.3 million, slightly down on its 2018 performance of £19.6 million.
This came despite a 12% increase in overheads caused by higher volumes and extra warehousing and distribution costs.
Chief executive Mark Kelly said he was pleased with the performance, which was achieved despite the economic uncertainty caused by Brexit.
He said: “We have reported robust financial results for 2019 and, despite Brexit-related and political uncertainty, delivered another year of strong sales growth and a good improvement in gross margin.
“Over the last four years, successful deployment of our commercial strategies has led to sales substantially exceeding our expectations.
“However, profits have been impacted more recently as we build the operating capacity to service our sales and we have experienced inefficiencies and extra costs.
“With manufacturing constraints now resolved, our focus for 2020 will be on executing the warehouse transition successfully, thereby facilitating future growth and the delivery of further operating efficiencies.
“As a result, looking forward we see good potential to outperform our markets.”
Mr Kelly added that while Eurocell’s performance this year had so far not been impacted by the recent coronavirus outbreak, the business was remaining vigilant.
He said: “As yet, there has been no discernible impact on our business from Covid-19, although we remain very alert to this possibility.
“Despite the impact of very wet weather so far this year, we have made a good start to 2020.
“Sales and margins for the first two months are in line with our expectations, and notwithstanding macroeconomic and political uncertainty, we expect to deliver further progress this year.”
