Full Year 2024 Eurocell PLC Earnings Call Transcript
Key Points
- Eurocell PLC (ECELF) reported a 32% increase in adjusted profit before tax, reaching GBP20 million, aligning with expectations.
- The company completed three share buybacks totaling GBP15 million, reducing shares in circulation and increasing shareholder returns.
- Eurocell PLC (ECELF) increased its ordinary dividend by 10%, demonstrating confidence in its business potential.
- The acquisition of Alunet is seen as a strategic fit with significant growth potential, enhancing Eurocell's product offerings.
- The company has made good progress on strategic initiatives, including branch network expansion and digital e-commerce growth.
- Revenues were down 2% in 2024, with volumes 1% lower, reflecting challenging trading conditions.
- Competitive pressure on selling prices in the branch network and ongoing cost inflation impacted profitability.
- Net debt increased slightly to GBP3 million, despite share buybacks, due to the acquisition of Alunet.
- The company faced a GBP3 million impact from national insurance contributions and national living wage increases.
- Non-underlying charges of GBP6.2 million included costs related to ERP systems replacement and a lease dispute.
Thanks, Gavin, and welcome, everyone to Eurocell full-year 2024 results presentation. As I'm Darren Waters, CEO; and alongside me is Michael Scott, CFO. We're following the usual format for this morning's presentation including an update on our strategic initiatives plus an overview of Alunet, our recent acquisition.
So in terms of last year 2024 was another challenging year but I'm pleased to say a year of progress for Eurocell with adjusted profit before tax bang in line with expectations at GBP20 million. That's up to 32% versus 2023. Against the backdrop of the top market we delivered a robust sales performance with revenues down just 2% at GBP358 million. And this is down to the good early progress we've made with all of our customer growth initiatives and more detail on that later in our presentation.
We also delivered on our commitment to drive improved shareholder returns completing three share buybacks worth GBP15 million in total which reduced the number of shares in circulation from GBP112 million to GBP101 million. And in
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