StockMarketWire.com - PVC products maker Eurocell upgraded its annual profit expectations following a sharp rise in revenue in the first half.

'As a result of stronger than anticipated first half performance, and a further improvement in the outlook for H2, we now expect profit before tax for the full year will be ahead of current market expectations,' the company said.

Analysts were expecting the company to report pre-tax profit forecast for 2021 was £22.8 million.

For the six months ended 30 June 2021, sales grew 80% compared to 2020, which reflected 'the impact of the closure of our business from 23 March to mid-May last year, resulting in only 90 trading days, compared to 124 in 2021,' the company said.

Reported group sales for the six months to 30 June 2021 were £168 million, representing a like-for-like increase of 21% compared to 2019 and 34% compared to 2020.

Looking ahead, the company continued to warn of increased supply chain issues and rising input costs, though said it was 'mitigating cost inflation with selling price increases, and for resin, a surcharge adjusted monthly in response to price changes.'

'Strong demand in our markets has put sector supply chains under pressure, and this shows no sign of abating. We are experiencing tighter supply and an inflationary environment, with prices of certain raw materials, particularly PVC resin, rising significantly in 2021,' the company said.

'We look forward to providing a full update when we announce our half year results for the six months ending 30 June 2021 on 3 September 2021,' it added.








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