Eurocell reported a 13% year-on-year increase in preliminary revenue for 2025, attributing the bulk of that rise to its acquisition of Alunet, which closed in March 2025. Management said the purchase was a substantial contributor to both the groups revenue lift and its growth in adjusted operating profit.
The companys adjusted operating profit increased by 6% for the year. By contrast, adjusted pretax profit declined by 5% to 3 million, a fall the group linked to higher finance costs incurred during the period. The report also set out headline profitability metrics: basic earnings per share were 0.10, pretax profit reached 12.20 million and EBIT totaled 17.30 million.
Eurocell completed a 5 million share buyback over the year and increased its total dividend, actions the board said reflect confidence in cash generation while maintaining flexibility on capital allocation. The company reiterated that it will continue with share buybacks in the future, subject to prevailing market conditions and its financial position.
While the Alunet acquisition delivered a notable contribution to reported numbers, underlying organic performance was weaker. Organic sales volumes fell by 2% as subdued market conditions, and in particular softness in the repair, maintenance and improvement - RMI - segment, weighed on demand. The company said it managed to offset cost inflation and pricing pressure from competitors through disciplined cost control and operational improvements.
Looking ahead, Eurocell described the potential effects of the situation in the Middle East as difficult to assess at present. The group nonetheless maintained that the UK construction markets medium and long-term prospects remain attractive. For 2026, the company expects demand in the RMI market to remain sluggish, but anticipates another year of good growth at Alunet.
In summary, Eurocells headline revenue and adjusted operating profit expanded in 2025 primarily because of the Alunet acquisition, while the company recorded mixed profitability trends due to finance costs and softer organic volumes. Management plans to continue share buybacks when appropriate and is projecting continued contribution from Alunet in 2026, even as it flags uncertainty from geopolitical developments and persistent weakness in the RMI market.
Key points
- Revenue rose 13% year-on-year in preliminary 2025 results, driven mainly by the March 2025 Alunet acquisition.
- Adjusted operating profit grew 6%, but adjusted pretax profit fell 5% to 3 million, reflecting higher finance costs; basic EPS was 0.10.
- Organic sales volumes fell 2% amid softness in the RMI segment; the company completed a 5 million buyback and increased its total dividend.
Risks and uncertainties
- Geopolitical risk - The group said the potential impact of the situation in the Middle East is difficult to assess, creating uncertainty for future trading.
- Market risk - The company expects RMI demand to remain sluggish in 2026, which could continue to weigh on organic volumes and end-market demand.
- Financial cost risk - Higher finance costs have already reduced adjusted pretax profit, indicating sensitivity of bottom-line profit to funding costs.