Trading Update and Share Buyback
27/11/2023 07:00
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RNS Number : 6530U Epwin Group PLC 27 November 2023
27 November 2023
Epwin Group Plc
("Epwin", the "Company" or the "Group")
Trading Update and Commencement of Share Buyback Programme
Epwin Group Plc (AIM: EPWN), 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 is pleased to announce a trading update for the second half of its
current financial year (FY 2023) to date and that it intends to commence a
share buyback programme (the "Programme") of up to 3 million ordinary shares
of 0.05 pence each ("Ordinary Shares") from the date of this announcement.
On track to meet FY 2023 expectations; continued strategic progress
Trading in the second half has been resilient, despite the more variable
end-market conditions widely reported across the UK construction sector in
September and October 2023. The Board remains confident of achieving FY 2023
underlying operating profit ahead of the prior year and in line with market
expectations (company compiled analyst consensus of £24.0m).
The Group has made good further progress with its strategy, including
continued operational improvement, new product development, integrating recent
value-enhancing acquisitions and sustainability. The medium and long-term
drivers for the Group's products remain positive.
Commencement of share buyback programme
The Board considers that the Group's strong balance sheet and cash generation
provides the opportunity to take advantage of current market conditions to
repurchase shares at attractive levels. The Board takes a disciplined approach
to investment, returns and the capital efficiency of the Group, in order to
maximise shareholder value. The Group intends to return capital to
shareholders both by way of the Company's on-going dividend policy and the
buyback programme, alongside the Group's continued investment in its strategy.
In order to implement the Programme, the Company has entered into an agreement
with Shore Capital for it to carry out on-market purchases independent of the
Company on an irrevocable and non-discretionary basis. The Programme will be
conducted within certain pre-set parameters and at all times in accordance
with the authority granted by shareholders to repurchase the Company's
Ordinary Shares at the annual general meeting held on 23 May 2023.
The Programme will commence today, 27 November 2023, and it is currently
envisaged that it will end no later than 30 April 2024 unless the Company and
Shore Capital agree otherwise (in which event an announcement would be made).
The Programme is intended to reduce the share capital of the Company and as
such repurchased Ordinary Shares will be cancelled. The Programme will not
impact the Company's existing dividend policy.
Shareholders should be aware that the Programme will, insofar as is possible,
be conducted in accordance with the safe harbour parameters of MAR (as defined
below); however, the Programme may on any given trading day represent a
significant proportion of the daily trading volume in the Ordinary Shares on
the London Stock Exchange and could exceed 25 per cent of the average daily
trading volume. Accordingly, the Company may not benefit from the exemption
contained in Article 5(1) in the UK version of the Market Abuse Regulations
(Regulation (EU) No 596/2014) as incorporated into UK domestic law by virtue
of the European Union (Withdrawal) Act 2018 ("MAR"). The Programme will not
prevent the Company from making additional purchases of Shares in accordance
with the Company's general authority to repurchase shares where it considers
appropriate to do so.
Any market purchase of Ordinary Shares pursuant to the Programme will be
announced no later than 7.30am on the business day following the day on which
the purchase occurred.
This announcement contains inside information for the purposes of Article 7 of
the UK version of the Market Abuse Regulation (EU) No.596/2014, which forms
part of UK law by virtue of the European Union (Withdrawal) Act 2018. The
Company confirms that it currently has no other unpublished price sensitive
information.
Contact information
Epwin Group Plc 078 3262 3818
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 Communications 078 3262 3818
Reg Hoare / Charlie Barker / Thomas Simpson 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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