A Derbyshire firm that makes PVC roof, window and door products, has reported a “robust” first half of the year despite the growing uncertainty in the construction sector caused by Brexit.
Eurocell, which is based at Alfreton, said that in the six months to June 30, its revenues increased by 15% to £136.3 million.
Meanwhile, the firm, which employs more than 1,000 people at its Derbyshire factory and has branches nationwide, said pre-tax profits edged up by 1% to £10.6 million.
According to a report published by the Construction Products Association earlier this year, the market for repairs, maintenance and improvements is “subdued” with Brexit-related uncertainty intensifying.
Eurocell said it was taking a “number of steps” to protect the business - but added that there could be an impact on its manufacturing operations.
In its half-year results, the firm said: “There remains significant uncertainty over the impact of Brexit, be it related to general macroeconomic factors or specific company risks.
“We have taken a number of steps to protect the business from potential negative effects.
“In this context, almost all of our sales are to UK-based customers and we expect the vast majority of our workforce will have the right to remain and work in the UK post Brexit.
“However, some 50% of our material purchases originate from Europe, so any disruption in supplies could impact our manufacturing operations.
“We continue to work closely with our key suppliers to support continuity of supply for our most critical raw materials.”
Going forward, the firm said it was focused on five goals: to increase the use of recycled materials, target growth in market share, expand the branch network, develop innovative new products and explore potential bolt-on acquisition opportunities.
Chief executive Mark Kelly said: “We have reported robust financial results for the first half and delivered another period of strong sales growth, albeit against weaker comparatives after bad weather in the early part of 2018.
“We have made good progress with our plans to improve operations. These include strengthening operational teams and implementing a substantial capital investment programme to increase production capacity.
“Our focus for 2019 remains on delivering further improvements in operating efficiency as these plans progress through the second half.
“As a result, while we are mindful of macroeconomic and political uncertainty, our expectations for the full year are unchanged.”
