Eurocell Delivers Resilient 2025 Results with Strong Alunet Contribution and New CEO Appointment

Eurocell’s 2025 numbers: revenue up, profits steady, cash strong

Eurocell’s preliminary 2025 results show a business holding its line in a sluggish market, helped significantly by the Alunet deal completed in March 2025. Group revenue rose 13% to £403.5 million, although excluding Alunet it was flat with organic volumes 2% lower.

Adjusted operating profit increased 6% to £24.1 million, but higher interest costs after the acquisition nudged adjusted profit before tax down 5% to £19.0 million. Reported profit before tax was £12.2 million, reflecting £6.8 million of non-underlying items tied mainly to the ERP programme and restructuring.

Key metrics	2025	2024	Change
Revenue	£403.5m	£357.9m	+13%
Adjusted operating profit	£24.1m	£22.8m	+6%
Adjusted profit before tax	£19.0m	£20.0m	-5%
Adjusted basic EPS	14.6p	14.4p	+1%
Reported profit before tax	£12.2m	£13.8m	-12%
Net cash from operating activities	£48.4m	£44.2m	+10%
Total dividend per share	6.4p	6.1p	+5%
Net debt – pre IFRS 16	£22.1m	£3.1m	£(19.0)m
Total net debt (incl. leases)	£98.2m	£62.5m	£(35.7)m
Capital investment	£12.5m	£10.3m	+21%

Gross margin came in at 50.9% for the Group, or 52.6% excluding Alunet, with management highlighting stable input costs and active price management. Operating cash generation improved to £48.4 million, helped by a £3.7 million working capital inflow.

Alunet acquisition is already delivering

The standout is Alunet. In the 10 months to December, the business generated sales of £46.7 million, up 28% on the equivalent 2024 period, and contributed £4.8 million of adjusted operating profit. Management says growth was driven by market share gains across Alunet Systems and Comp Door, with 14 Eurocell PVC fabricators now sourcing their aluminium requirements from Alunet.

Deal terms matter. Eurocell acquired Alunet in March 2025 in a transaction valued at £29 million based on a 6.5x multiple of 2024 EBITDA. Initial consideration was £22.3 million, including £1.1 million in Eurocell shares, with potential contingent payments of up to £13.7 million over four years, subject to performance. The Group expects another good year from Alunet in 2026, with further share gains and new product introductions.

Divisional picture: Profiles steady, branches squeezed, Alunet in growth

• Profiles: third-party revenue up 1% to £146.7 million with volumes down 2% as repair, maintenance and improvement (RMI) demand stayed soft. Adjusted operating profit fell 10% to £17.4 million due to lower volumes and wage inflation.
• Branch Network: third-party revenue down 1% to £210.1 million and volumes down 2%. Adjusted operating profit dropped 48% to £3.4 million on price competition, labour cost inflation and deliberate investment in growth initiatives.
• Alunet: revenue £46.7 million and adjusted operating profit £4.8 million in the post-acquisition period.

Worth noting inside the branches: sales of windows and doors rose 12% to £30.3 million as the programme rolled out to all 215 sites by July, e-commerce jumped 40% to £6.6 million with strong margins, and garden rooms grew 9% to £9.6 million. New branches added £3.3 million of sales but produced a short-term operating loss of £1.1 million, which management expects to reverse as sites mature.

Strategy execution: more sites, more categories, more digital

Eurocell is pushing a five-year plan aimed at £500 million revenue and £50 million operating profit at a 10% margin. Markets have been weaker than hoped, but the building blocks are visible:

• Branch expansion – 7 openings and 6 relocations in 2025. Estate now at 215 sites, targeting at least 250, with c.30 new sites over the next three to four years and at least 5 in 2026.
• Windows and doors – national coverage across the network, supported by a fabricator partner base that buys bar length from Eurocell.
• Digital – heavier investment in paid media, better use of AI for targeting, and propositions like one-hour click-and-collect helped lift online sales to £6.6 million.
• Extended living – garden rooms remain, extensions exited after a review of returns.

Costs, cash and balance sheet: tight discipline, ERP spend, and refinancing

Underlying overheads increased 10% to £153.8 million, but only 1% excluding Alunet, showing decent cost control in the face of higher National Insurance and National Living Wage from April 2025.

• Non-underlying items totalled £6.8 million – mainly £4.2 million on the ERP and trade counter system and £1.8 million of restructuring.
• Cost actions implemented in 2025 deliver around £4 million of annualised savings.
• Recycling consolidation announced in February 2026 should cost c.£2.6 million of capex with c.£1.5 million annualised savings from 2027, and c.£3 million of non-underlying charges.
• Banking – the £75 million unsecured revolving credit facility was refinanced in March 2026 to 2030.

Pre-IFRS 16 net debt ended the year at £22.1 million, equating to leverage of 0.7x pre-IFRS 16 EBITDA, with total net debt of £98.2 million including leases. For context, the Alunet initial consideration was substantially funded from the facility.

Dividends are moving up again. A final dividend of 4.1p takes the 2025 total to 6.4p, up 5%, payable on 19 May 2026 to holders on 17 April (ex-div 16 April). Together with completed buybacks of £5 million, total 2025 returns were £11.4 million, equivalent to a yield of c.8%.

Leadership change: Will Truman takes the reins

Will Truman was appointed CEO on 9 February 2026, succeeding Darren Waters. Having served on Eurocell’s Board since 2023 and with prior CEO and CFO experience, the Board frames his appointment as bringing stability and pace to strategy execution. Michael Scott remains CFO while a permanent successor is recruited.

Why this matters for investors

These are resilient figures in a tough RMI market. The Alunet deal looks well judged, with immediate top-line and profit contribution, cross-sell to Eurocell fabricators, and a clear runway for 2026. Strong cash generation and modest pre-IFRS 16 leverage provide room to keep investing and returning cash.

On the flip side, the Branch Network is under pressure. Adjusted operating profit roughly halved as pricing stayed competitive and labour costs rose. The ERP project is essential but not cheap, with total non-underlying spend now expected at around £13 million over 2024-27. Total net debt including leases has stepped up, and health and safety performance slipped, with LTIFR at 6.4 versus 4.1 in 2024.

Outlook and what to watch in 2026

• Alunet momentum – evidence of continued market share gains and delivery of group synergies.
• Branch profitability – can stronger windows and doors, e-commerce and garden rooms offset price pressure and wage inflation.
• ERP transition – costs, timing and early benefits ahead of the planned end-2026 go-live.
• Recycling consolidation – execution of the Ilkeston plan and visibility on the £1.5 million annualised savings from 2027.
• Capital returns – the Board intends to continue buybacks, subject to macro conditions and maintaining a strong balance sheet.

Overall, I see a business that has tightened operations, bought a growth asset at a sensible multiple and kept cash generation healthy. If market demand stabilises and the branch initiatives bed in, Eurocell is positioned to make further progress on its five-year targets while continuing to reward shareholders.