In the Colebrooke Partners 2024 Q4 fund letter, Eurocell (LSE:ECEL.L, Financial) was highlighted as a new acquisition, reflecting the fund's confidence in its vertically integrated business model and strategic growth plans. Eurocell operates through two divisions: Profiles and Building Plastics, with a strong focus on recycling and internal sourcing of PVC resin. Despite recent subdued financial performance due to market conditions, the company is positioned for significant growth as the market recovers.
"After over a dozen meetings with former employees, competitors, investors and customers, we purchased shares in Eurocell plc (ECEL.L) in the period. Eurocell is split into two divisions. The first is its Profiles division, which manufactures rigid and foam PVC profiles using both virgin and recycled resin. Eurocell is one of Europe’s largest recyclers of PVC and all of the recycled PVC resin used in its manufacturing is sourced internally. This vertical integration extends through to its second division, which it imaginatively calls Building Plastics. This division operates a branch network of over 200 locations and sells both Eurocell manufactured products and a range of third-party SKUs. Customers are mainly windows and doors installers, small builders, roofing contractors and independent stockists." — Colebrooke Partners, Q4 2024 Fund Letter
Read full letter at gurufocus Colebrooke Partners 2024 Q4 page.
