Eurocell Share Discussion Threads

[edwards9] 16/3/2021 12:39

More also during the Q&A 46min:2021 Expecting to maintain Gross Margin 50.5 to 51%. Also ECEL expect PVC resin prices to fall later this year.

[edwards9] 16/3/2021 11:32

Yep, on the results audio ( 3.45 min) they confirmed that surcharges are being applied to every invoice.

[pj84] 14/3/2021 17:50

The following is from the results and whilst there might be some increase in input costs all of Eurocell's competitors will be in the same situation and either they will all go bust (which isn't going to happen) or increases in input prices will have to be passed on which they are staring to implement.

"BREXIT AND SUPPLY CHAIN

We took several steps to protect the business from the potential negative effects of Brexit. In this context, it is worth noting that over 95% of our sales are to UK-based customers and that the vast majority of our workforce has the right to work in the UK.

Some of our key raw materials do originate from Europe, so any disruption in supplies could impact our manufacturing operations. With that in mind, whilst we have only limited capacity to hold additional raw materials at our own sites, we completed a significant investment in additional stocks in 2019, adding c.GBP5 million to finished goods for key product lines, most of which remained in place throughout 2020.

Now that the nature of the future trading relationship between the UK and the EU has been substantially defined, the risks relating to the imposition of import tariffs are largely behind us.

More generally, whilst the impact of increased demand, supplier production outages and new administrative requirements for EU imports have together put sector supply chains under pressure, we have continued to secure the raw materials we require. So far, we have not experienced any significant adverse effects from the delays at UK ports.

However, PVC resin prices began to increase towards the end of 2020 and this trend has continued into the new year. We are therefore implementing selling price increases, starting in February 2021, to recover this and other cost inflation."

[bingothevandal12] 14/3/2021 08:34

Extra PVC spend adds > £2.5M to their cost of sales in Q1 and an extra £1.5 -3M in Q2 due to other increases.

[dope007] 13/3/2021 08:47

UK/Europe PVC is up around 50% and shortages for anything out of China is simply getting worse. with no end in sight. April/May if they haven't said anything and the stock price remains high....

[bingothevandal12] 13/3/2021 05:19

That is Far East .They probably do not buy PVC from this market. You want to read Europe and NA / LATAM forecast. Makes your colleywobbles wobble.

[bingothevandal12] 13/3/2021 05:16

The raw material shortages and linked price rises plus ancillary costs will continue to rise until at least beginning Q3. Unless they hike share price by 20-30% there will be a significant effect on EOY profitability.

[dope007] 12/3/2021 08:55

hTTps://www-argusmedia-com.cdn.ampproject.org/v/s/www.argusmedia.com/en/news/2189864-chinas-pvc-prices-surge-on-supply-tightness?amp_js_v=a6&_gsa=1&=1&usqp=mq331AQHKAFQArABIA%3D%3D#aoh=16155390998912&referrer=https%3A%2F%2Fwww.google.com&_tf=From%20%251%24s&share=https%3A%2F%2Fwww.argusmedia.com%2Fen%2Fnews%2F2189864-chinas-pvc-prices-surge-on-supply-tightness

[dope007] 12/3/2021 08:44

I should add I said expect results to be fine but since Jan it's a mess for the whole industry

[dope007] 12/3/2021 08:43

They are real and they have not mentioned them. Look up PVC price if you don't believe me. If it carries on for a few more months they will have no choice but to inform the mkt imho

[bingothevandal12] 12/3/2021 08:31

When all your raw materials are increasing by up to 60% and your sales price is only up 10% so the maths

[spooky] 12/3/2021 08:19

Looks as though you have read this one wrong Dope007.

[dope007] 10/3/2021 23:07

Results for the year should be fine. Since January though is a whole different story is my expectation for tomorrow

[dope007] 05/3/2021 10:01

FY results 12th March. Tempted to go short ahead of them

[bloomberg2] 15/1/2021 07:48

Should get a nice pop at the open

[bloomberg2] 09/10/2020 09:23

This Business looks like it's Booming ! Expecting positive update very soon?

[johnpaul1] 08/7/2020 22:08

The job losses to come will be at the end of this year once furlough finishes. Then it's see where we are next spring. If to many people loose jobs they won't be thinking about DG ing A positive today was in the budget where I think DG is part of the green package. So if you are getting new insulation / boilers / DG then government will pay 2/3 of the cost (I think)

[scepticalinvestor] 08/7/2020 18:00

Why do you say next year?

[johnpaul1] 08/7/2020 13:22

Yes happy with the info. The building trade will enter a melt up till end of this year.Next year is the worry

[scepticalinvestor] 08/7/2020 09:26

Excellent update - things back on track etcOne to hold for a few months imo

[johnpaul1] 21/1/2020 17:00

Climbing nicely. No one is following this one

[johnpaul1] 20/12/2019 10:28

Looking better. Confident in this share over next 3 yrs.

[sphere25] 05/9/2019 20:18

With Woodford being topical, I have been posting on some of his holdings and sales with the likes of NSF and REDD.

I was looking through his recent disastrous holdings and wondering whether this could be the next ex-Woodford stock to warn. They cautioned last December on rising costs. Manufacturing and the economy is deteriorating materially.

A few snippets from the report here:

"The Construction Products Association Spring 2019 update reported on a subdued Repairs, Maintenance and Improvements ('RMI') market, with Brexit-related uncertainty intensifying"

Peak season upcoming, but have the politic shenanigans already thrown a spanner in the works:

"We are affected by seasonality. Demand in the second half of the year is usually higher than in the first half, with September to November typically representing our peak sales period to the RMI market."

Even with Woodford out, the stock is trending down and there are sellers in size.