Year-end trading update and notice of results
25/01/2023 07:00
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RNS Number : 7441N Epwin Group PLC 25 January 2023
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25 January 2023
Epwin Group Plc
("Epwin" or the "Group")
Year-end trading update and notice of results
Epwin Group Plc (AIM: EPWN) ("Epwin", "the Company" 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, announces its year-end trading update in respect
of the year to 31 December 2022 ("FY 2022").
Trading performance
Trading remained robust through to the end of the year, with revenues
increasing by 8% to approximately £355 million (2021: £329.6 million). This
was predominantly driven by pricing actions to recover the significant cost
inflation in the sector, as well as bolt-on acquisitions completed in 2022
which contributed revenues of £4 million in the year.
The Group has continued to navigate the well-publicised issues of labour,
energy and raw material cost inflation. As a result, the Group expects to
report adjusted profit before tax for FY 2022 in line with current market
expectations(1), subject to audit, which is a significant increase over FY
2021.
Balance sheet and liquidity
Cash generation has remained strong and the Group expects to report covenant
net debt (pre-IFRS 16) as at 31 December 2022 of c. £18 million (2021: £9.4
million), an improvement on current market expectations(1) and including the
cost of two acquisitions in FY2022 for a combined cash consideration of c.£19
million. This represents a year-end leverage of c.0.7x adjusted EBITDA.
Acquisition of Hampton Decking
The completion of selective, value enhancing acquisitions remains a core part
of Epwin's strategy and in December 2022 the Group acquired Hampton Decking
Limited for a net cash consideration of c.£4 million. The Group supplies high
quality decking and related products to the holiday park industry primarily
under the Mayfield name. The acquisition further extends the Group's
operations in these markets, which have seen good growth over recent years.
This follows the Group's acquisition of Poly-Pure Limited in September for
initial cash consideration of c.£15 million, further enhancing the Group's
materials recycling capabilities as well as delivering on its sustainability
strategy.
Current trading
Trading in the first weeks of 2023 has remained robust and has been in line
with the Board's expectations. We remain confident of executing our strategy
and in the strength of the medium and long-term drivers of our markets,
despite the current macro-economic outlook.
Notice of results
The Group will announce its full year results for the year to 31 December 2022
on Tuesday 4 April 2023.
Jon Bednall, Chief Executive Officer, said:
"I am grateful once again to all of the Group's staff who worked hard together
to deal with the challenges of 2022 and deliver this strong overall
performance.
I am also delighted to welcome the Poly-Pure and Hampton Decking businesses to
the Group, both of which continue to broaden the Group's product range,
materials capabilities and sustainability credentials.
Our trading performance remained robust through 2022 and we continue to
execute our strategy, confident in the strength of the medium and long-term
drivers for our markets, despite the short-term macro-economic challenges."
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 Communications 0203 128 8168
Reg Hoare / Charlie Barker / Pauline Guenot Epwin@mhpc.com
((1)) Based on Company compiled consensus, the Board believes the average
analyst forecast for 2022 adjusted profit before tax to be £16.3 million and
covenant net debt (pre-IRS16) to be £20.6 million.
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.
www.epwin.co.uk (http://www.epwin.co.uk/)
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