Half-year trading update and notice of results
31/07/2023 07:00
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RNS Number : 6330H Epwin Group PLC 31 July 2023
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31 July 2023
Epwin Group Plc
("Epwin" or the "Group")
Half-year trading update and notice of results
Trading ahead of a strong 2022 comparative; confident of achieving full year
expectations
Epwin Group Plc (AIM: EPWN) ("Epwin" or the "Group"), the leading manufacturer
of energy efficient and low maintenance building products, supplying the
Repair, Maintenance and Improvement ("RMI"), new build and social housing
sectors, is pleased to announce its half-year trading update in respect of the
year ended 31 December 2023.
Trading update
Trading during the first half of 2023 was in line with the Board's
expectations. Revenues increased to approximately £180 million, with the
Group continuing to trade ahead of a strong 2022 comparative.
After a robust start to the year, trading moderated slightly in the second
quarter as macroeconomic factors and fiscal tightening impacted demand,
however trading in the Group's core markets remains resilient. The
inflationary pressures that have significantly impacted raw material costs
over the last two years have continued to ease, although PVC resin prices
remain at elevated levels. Labour, power and other inflationary cost pressures
continue to be managed through pricing.
The Group retains a strong balance sheet with covenant net debt at 30 June
2023 remaining low at £16.1 million (31 December 2022: £17.9 million), which
is approximately 0.6x adjusted EBITDA. This provides the Group with over £60
million of headroom on its facilities to support its strategic objectives,
including value enhancing acquisitions.
Outlook
The Board remains confident of the Group delivering underlying operating
profit for the full year in line with market consensus expectations*.
The Board is cognisant of the potential effect of short-term macro-economic
headwinds, however, the Group's broad product range, diverse customer base,
well-invested operations, longstanding supplier relationships and strong
balance sheet provide a large measure of resilience.
The medium and long-term drivers of the market remain positive for the Group,
with a shortage of new and affordable housing, an ageing and poorly maintained
housing stock and increasing concern about the quality of social housing all
helping to bolster future demand. Additionally, the Group's products have
inherently strong environmental credentials and a clear role to play in the
decarbonisation of the UK housing stock which will be required to meet net
zero ambitions.
Notice of results
The Group expects to announce its results for the half-year ended 30 June 2023
on 20 September 2023.
Jon Bednall, Chief Executive Officer, said:
"I am pleased to report that trading in the first half was in line with the
Board's expectations and ahead of a strong 2022. This is testament to the
combined efforts of all my Epwin colleagues and I would like to thank them for
consistently delivering a strong post-covid performance.
We remain confident of achieving our full year expectations and have a
positive view of our future prospects despite the short-term macroeconomic
headwinds. Looking further ahead, the medium and long-term drivers for the
Group's products remain positive."
*Company collated analyst consensus for FY23 underlying operating profit is
£24.0m
Contact information
Epwin Group Plc 0203 128 8168
Jon Bednall, Chief Executive
Chris Empson, Group Finance Director
Shore Capital (Nominated Adviser and Joint Broker) 0207 408 4090
Corporate Advisory
Daniel Bush / Iain Sexton
Corporate Broking
Fiona Conroy
Zeus Capital Limited (Joint Broker) 0203 829 5000
Dominic King / Nick Searle
MHP 078 3462 3818
Reg Hoare / Charlie Barker / Pauline Guenot epwin@mhpgroup.com
About Epwin
Epwin is the leading manufacturer of energy efficient and low maintenance
building products, with significant market shares, supplying the Repair,
Maintenance and Improvement ("RMI"), new build and social housing sectors.
The Company is incorporated, domiciled and operates principally in the United
Kingdom.
Information for investors can be accessed www.epwin.co.uk/investors/
(http://www.epwin.co.uk/investors/)
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