Eurocell offers an asymmetric cyclical recovery opportunity: a top-two UK uPVC position, 5.3% dividend yield and 195.9 GBp probability-weighted five-year value offset meaningful housing and execution risks.
Overview
Eurocell manufactures, recycles and distributes uPVC and aluminium building products through Profiles and Building Plastics, serving UK fenestration, residential construction and RMI markets. More than 95% of revenue is generated in the UK, with approximately 70%–75% of sales volume from RMI and 25%–30% from private new build. Its competitive position rests on **more than 200 branches, closed-loop recycling and fabricator switching costs**, while Alunet expands the group into aluminium systems. H1 2026 revenue rose 6.2% to £205.2 million and adjusted operating profit increased 9.9% to £11.1 million, but £9.4 million of restructuring charges drove a £1.40 million statutory PBT loss and a £1.10 million net loss. Adjusted EPS nevertheless rose 8.3% to 6.50p, and the interim dividend increased 8.7% to 2.50p. Shares around £1.22 trade at 8.5x adjusted P/E, 4.0x EV/EBITDA and offer a 5.3% yield, versus five-year medians of 14.1x, 6.7x and 4.0%. The near-term catalyst is FY 2027 restructuring savings, while housing normalization and Alunet cross-selling support the longer-term valuation recovery.