Final results for the year ended 31 December 2023

Epwin Group PLC
10 April 2024
 

 

 

 

 

10th April 2024

 

This announcement contains inside information for the purposes of Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310 (as amended). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

 

Epwin Group Plc

Final results for the year ended 31 December 2023

 

Well placed after another year of strong profit growth and strategic delivery

 

Epwin Group Plc (AIM: EPWN) ("Epwin" or the "Group"), 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, announces its full year results for the year ended 31 December 2023.

 

Financial highlights

£m

 

2023

 

2022

Revenue

345.4

355.8

Underlying operating profit1

25.5

21.5

Underlying operating margin1

7.4%

6.0%

Statutory operating profit

20.7

16.9

Adjusted profit before tax1

18.0

16.5

Profit before tax

13.2

11.9

Basic EPS

6.41p

5.78p

Adjusted EPS1

9.71p

8.95p

Dividend per share for the year

4.80p

4.45p

Pre-tax operating cash flow

39.7

38.6

Covenant net debt2

14.4

17.9

Covenant net debt to adjusted EBITDA2

0.5x

0.6x

Underlying operating cash conversion3

156%

180%

1 Adjusted for amortisation of acquired other intangible assets, share-based payments expense and other non-underlying items.

2 Covenant net debt and covenant net debt to adjusted EBITDA are pre-IFRS 16 measures.

3 Underlying operating cash conversion is pre-tax operating cash flow as a percentage of underlying operating profit.

 

·    Strong trading performance, modestly ahead of expectations:

Underlying operating profit increased by 19%, as margins return towards pre-pandemic levels, an increase of 140 basis points over prior year

Revenues slightly behind a strong 2022 comparative, following lower volumes and surcharge reductions as inflated PVC input prices reduced

Strong cash generation continued with pre-tax operating cash flow of £39.7 million (2022: £38.6 million)

·    Further strengthening of our already robust financial position:

Covenant net debt at year end less than 0.5x adjusted EBITDA

In excess of £60 million headroom on banking facilities, maturity extended to August 2026, to support the Group's growth and development strategy

Shareholder returns: share buyback and dividend

·    Share buyback programme commenced to boost shareholder returns:

Initial programme expected to complete today

Intention to continue programme subject to AGM approval

·    Dividend per share increased by 8%:

Proposed final dividend of 2.80 pence per share, resulting in a total dividend for 2023 of 4.80 pence per share (2022: 4.45 pence per share)

Increased dividend reflects the positive outlook for the Group and its strong financial position

 

Operational and strategic highlights

·    Inflationary pressures easing, continue to be actively managed:

Raw material cost inflation continued to ease, although PVC resin and other raw material prices remain elevated

Inflationary pressures in respect of energy and labour continue to be managed carefully

·    Continued delivery of our strategy:

Value-enhancing acquisitions:

§ Integration of 2022 acquisitions, progressing in line with management expectations

§ Capital investment programme to expand materials re-processing capacity and margin at Poly-Pure completed

New product development:

§ Progress being made on increasing the use of recycled materials within extruded products as well as developing market opportunities for reprocessed material

§ Focus on wider product range extension continues, with new products added to core ranges

Operational improvement:

§ Consolidation of decking manufacturing to a single site completed on time in H1 2023, with operational synergies being realised

§ Implementation of single IT system across the distribution network progressing well, with phased implementation from Q4 2023, expected to complete in H1 2024

Further progress on sustainability:

§ Sustainability-Linked Loan incorporated into Group's banking facilities on renewal, with targets relating to energy intensity and PVC recycling

§ Reporting on climate-related risks and opportunities continues to develop, including Year 1 reporting under TCFD

 

Current trading and outlook

·    The Group's range of low maintenance, energy efficient and recyclable building products has shown resilience against subdued markets and macroeconomic headwinds, which are expected to continue throughout 2024

·    Current trading is in line with the Board's expectations

·    Board remains confident of continuing to execute the Group's strategy in 2024

·    Positive medium and long-term RMI market drivers remain:

Poorly maintained and ageing housing stock, underinvested social housing and a shortage of housing supply

Environmental concerns driving government policy focus on decarbonising the UK housing stock and improving the energy efficiency of homes 

 

Jon Bednall, CEO of Epwin, commented:

 

"The Group has, once again, delivered financial performance at, or ahead of, market consensus expectations, with 2023 results significantly ahead of a strong 2022 comparative. This is testament to the combined efforts of all my Epwin colleagues and I would like to thank them for this and for the good progress we have continued to make with both our strategic and sustainability targets.

Our diversified portfolio of energy efficient and low maintenance building products leaves us well positioned when end markets recover and to benefit from longer-term structural drivers of demand.

We remain confident in the Group's future prospects, despite the short-term macroeconomic headwinds and expect to make further progress in 2024."

 



 

Contact information

 

Epwin Group Plc

Jon Bednall, Chief Executive

Chris Empson, Group Finance Director

 

 

078 3462 3818  

Shore Capital (Nominated Advisor and Joint Broker)

Corporate Advisory

Daniel Bush / Iain Sexton

 

Corporate Broking

Fiona Conroy

 

Zeus Capital Limited (Joint Broker)

Dominic King / Nick Searle

 

 

 0207 408 4090

 

 

 

 

 

 

0203 829 5000

 

MHP

Reg Hoare / Charlie Barker / Finn Taylor

078 3462 3818

epwin@mhpgroup.com

 

 

Forthcoming dates:

Ex-dividend date                              9 May 2024

Dividend record date                     10 May 2024

Annual General Meeting              21 May 2024

Dividend payment date                                5 June 2024

 

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


Chairman's Statement

The Group successfully navigated a challenging trading and macroeconomic environment to deliver an excellent 2023 result that again meets profit expectations. This is testament to the efforts and commitment of our hard-working employees across the Group and I would again like to thank them, on behalf of the Board and our shareholders, for their dedication. We were pleased to be able to award a cost of living support payment to all employees, with the exception of senior management, for a second year in recognition of these efforts.

Strong performance

The Group once again met its revenue and profit expectations, delivering a strong performance. Trading remained steady through to the end of the year, albeit H2 revenues reflected more subdued market conditions following a strong first half. Full year revenue of £345.4 million (2022: £355.8 million) represents a small decline, as expected, compared to the prior year due to more subdued volumes in private housing RMI, a sluggish housing market, and the impact of softening PVC prices and consequent reductions in surcharges.

Underlying operating profit of £25.5 million (2022: £21.5 million) represents a 19% increase from a strong comparative as margins returned towards pre-pandemic levels and we maintained a sharp operational focus to control costs, with statutory operating profit also ahead at £20.7 million (2022: £16.9 million).

Strong cash generation continued during the year, with pre-tax operating cash flow increasing to £39.7 million (2022: £38.6 million) and covenant net debt at the year end, better than expected, at £14.4 million (2022: £17.9 million). The strength of the Group's financial position and significant headroom on banking facilities, in excess of £60 million at year end, provides ample capacity and flexibility to drive our long-term strategy.

This performance demonstrates the strength of our business model and the resilience of our customer base and core markets.

Strategic progress

The Board considers that the Group's core strategic objectives remain appropriate and, therefore, the Group's operational strategy continues to focus on extending our product portfolio, technical capability and channels to market, through investment in new products and acquisitions, operational improvement, cross-selling across our customer base, and leveraging the recognition and channels of our brands for the benefit of the Group.

During the year, we made good progress against our core operational objectives with a particular focus on the integration of our 2022 acquisitions and consolidation of activities across the Group, including:

·    Investment in plant to expand recycling capacity and margins at Poly-Pure, acquired in 2022

·    Investment in co-extrusion tooling to enable increased use of recycled PVC in place of virgin material

·    Transition of third-party production to our own facilities, following 2022 acquisitions

·    Consolidation of Group decking production to a single site completed in H1 2023

·    Implementation of a single IT system covering our distribution network, which went live on a phased basis in Q4 2023, to complete in H1 2024

·    Realisation of additional cross-selling opportunities presented through our distribution network

 

The Group continues to make progress with developing a meaningful and positive sustainability framework and targets, while delivering on our sustainability agenda in support of our wider strategy. Our commitment to our sustainability strategy is underlined by the formalisation of sustainability metrics within our new Sustainability-Linked Loan facility with existing lenders, Barclays and HSBC, where modest adjustments to the margin are applied based on the Group's achievement against annual targets relating to PVC recycling and energy intensity ratio.

 

Our sustainability reporting continues to develop. For the third year, we will be presenting an integrated Sustainability Report as part of our annual report and, this year, we have adopted the recommendations of the Task Force on Climate-Related Financial Disclosures ("TCFD") for the first time.

Share buyback and dividends

In November 2023, the Group announced the commencement of a share buyback programme for the repurchase of up to 3 million ordinary shares for cancellation, as our strong cash generation and balance sheet provided the opportunity to take advantage of market conditions to repurchase shares at attractive levels and return additional funds to shareholders. The buyback is progressing well, and we anticipate completing this initial programme in early Q2 2024. As at 31 December 2023, 0.4 million ordinary shares had been repurchased and cancelled, at a total cost of £0.3 million. To the date of this report, 3.0 million shares have been repurchased, at a cost of £2.3 million. Additionally, the Group repurchased 0.7 million shares following the post year end vesting and exercise of options under the Group SAYE scheme.

Taking into account the outlook for the Group, and our strong financial position, the Board declared an interim dividend of 2.00 pence per share (2022: 1.90 pence per share), which was paid to shareholders in October 2023. The Board is recommending a final dividend for 2023 of 2.80 pence per share (2022: 2.55 pence per share) to be paid on 5 June 2024 to shareholders on the register on 10 May 2024. This full year dividend of 4.80 pence per share (2022: 4.45 pence per share), represents an increase of 8% over the prior year and is in line with the Board's policy of a progressive dividend that is approximately twice covered by adjusted profit after tax.

The Group intends to continue returning capital to shareholders both by way of our on-going dividend policy and the buyback programme, alongside continued investment in the Group's strategy.

Corporate governance and AGM

The Board of Directors, including myself as Chairman, acknowledges the importance of the ten principles set out in the QCA Code and details of our compliance with the Code can be found in the Corporate Governance section of the 2023 Annual Report and Accounts as well as on the corporate website.

The Annual General Meeting ("AGM") will be held at Squire Patton Boggs (UK) LLP, Rutland House, 148 Edmund Street, Birmingham, B3 2JR on Tuesday 21 May 2024 at 11.00 am.

Board changes

As part of our ongoing review of board composition and in an effort to increase the breadth of skills and experience across the Board, I am pleased to announce that Kathy Callaghan will be appointed as Non-Executive Director from 10 April 2024. Kathy brings a wealth of experience, most recently from Rotork Plc where she was Group HR Director and a member of the executive team and board ESG committee with responsibility for global HR, communications and external affairs.

After almost ten years as Chairman of the Board, having been appointed as Chairman shortly after the IPO in 2014, I gave notice of my intention to step down from this position and retire from the Board following the forthcoming AGM. The Board's succession planning means that I am delighted to announce that Stephen Harrison has agreed to replace me as Chairman and I wish him, the Board and the Group every success for the future.

Summary and outlook

The Group's trading performance during 2023 has been resilient, demonstrating the strength of our multi-brand, multi-channel business model, and we have continued to make good strategic progress, delivering strong operating profit and cash flow in a challenging trading environment.

As we begin 2024, macroeconomic headwinds continue in the form of economic uncertainty, continued elevated inflation, heightened interest rates and a further anticipated slowdown in the housing market according to recent Construction Products Association forecasts. However, the Group's broad product range, diverse customer base and operations, longstanding supplier relationships and strong balance sheet continue to provide a large measure of resilience against any short-term changes in conditions.

The medium to long-term drivers of the market remain positive, with the UK still facing a shortage of new and affordable housing, an ageing and underinvested housing stock and increasing concern about the quality of social housing. Environmental concerns are driving legislation and initiatives that will require improvements to homes on a larger scale than simply essential maintenance, with the need to decarbonise the UK housing stock and improve the energy efficiency of homes growing in urgency given the UK's net zero commitments.

Despite the current macroeconomic outlook, we remain confident of executing our strategy, supported by the strength of the medium and long-term drivers of our markets.

 

 

 

 

 

Andrew Eastgate

Chairman

10 April 2024


Business Review

 

Strong trading performance

The Group delivered a strong performance in 2023 and continued to make progress towards our strategic objectives. Revenue declined slightly compared to the prior year, as expected, by 3% to £345.4 million against a very strong comparative (2022: £355.8 million). This was due to lower market volumes, primarily in the second half of the year, and surcharge reductions as PVC input prices reduced, offset by the full year contribution of our 2022 acquisitions, which contributed £12.0 million of external revenue (2022: £3.8 million).

Underlying operating profit increased by 19% to £25.5 million (2022: £21.5 million), as underlying operating margin improved by 140 basis points to return towards pre-pandemic levels, reflecting our strong operational focus and responsible approach to materials price inflation in a competitive market.

The easing of raw material inflation, which was a significant factor in 2021 and 2022, appears to have plateaued, with prices remaining at elevated levels. Inflation continues to put pressure on overheads, particularly staff costs, driven by labour retention and living wage increases, and power prices, which continue to be elevated. As a result, the Group continues to implement pricing actions where needed to pass on heightened operating costs appropriately. Recruitment challenges have eased somewhat but remain a factor and we continue to develop our pool of talent for the future, welcoming an increased number of apprentices to the Group during the year, along with the second cohort of participants on our graduate programme.

Operational highlights

 

Health and safety

The safety and wellbeing of our employees is our key operational priority and we strive for continuous improvement in health and safety standards across all operations. Health and safety related KPIs are closely monitored by the main and divisional boards. Our accident frequency rate ("AFR") has increased slightly to 4.4 per 100,000 hours worked (2022: 3.8), but remains below industry benchmarks. This is again driven by increased reporting of minor accidents, as lost time accidents (resulting in one or more days unable to work) were lower than 2022 on a like-for-like basis. Employees are encouraged to report all incidents and near-misses, even when minor, as part of a proactive approach to risk management and to promote an open and blame-free culture where health and safety is continually improving. There was also an increase in the number of RIDDOR injuries to 11 (2022: 9). While this remains low for a manufacturer of our size, the occurrence of any injury is always disappointing, with all incidents thoroughly investigated and appropriate actions taken.

A Group-wide exercise to reinforce training and ensure safe process is adhered to, focussing on the most common accident types, is again being undertaken. The recording and reporting of accidents remains critical to understanding the level of risk and adherence to process in our operations and KPIs continue to be monitored closely by management.

 



 

Production

With volumes in our core markets softening compared to the prior year, particularly in the second half of the year, we maintained a sharp focus on operational efficiency. Across our key manufacturing locations, materials efficiency and scrap rates are closely monitored and improved during the year, from an already strong base, with scrap rates reducing to all-time lows across the Group due to improved operational working practices.

Recycling

Increasing the volume of PVC waste recycled through our operations and increasing the use of recycled material within our own products remain core areas of focus for the Group. During the year, we invested in expanding the capacity and margins of our recycling operation and in co-extrusion tooling, which enables us to incorporate a greater proportion of recycled material into our products. The capital investment plan committed to on the acquisition of Poly-Pure was completed and operational by the end of 2023, albeit behind schedule due to delays in the delivery of plant. The business is now in a position to deliver on the increased capacity, margin and synergies envisaged at acquisition.

Strategic progress

The Group's focus continues to be on operational efficiency, product and materials development, cross-selling and business development, identifying and completing value-enhancing acquisitions and building on the Group's inherent sustainability credentials.

Value-enhancing acquisitions

During 2022, the Group completed the acquisition of Poly-Pure, a leading UK materials re-processor and Mayfield, a supplier of decking and related products to the holiday park industry. Integration of the 2022 acquisitions has been a focus during the year and is progressing in line with management's expectations.

 

The initial Poly-Pure integration is well progressed. The business was impacted by increased prices for recyclate, driven by an increase in market demand, and capital investment plans to raise capacity and facilitate the production of higher margin material were impacted by long lead times on plant. However, the capital investment was completed by year end and the business is building encouraging momentum for the future. The acquisition has enabled the Group to accelerate delivery of its sustainability agenda and contribute to a circular economy by recycling post-consumer waste and developing the wider market for recycled raw materials, and we remain optimistic about its prospects.

 

Mayfield has expanded the geographical coverage of the Group's growing decking operations and outdoor products range and the transition of third-party production to our own facilities is progressing. As a result, Mayfield has delivered an encouraging performance against challenging conditions in the holiday park and leisure market.

 

Product and materials development

Broadening our product portfolio and continually improving our products to ensure they remain at the forefront of the market, continues to be a priority for the Group. We work closely with our customers so that our actions are informed by their feedback. During the year we added further products to our core PVC and aluminium ranges and enhanced the opportunities to both utilise in house, and sell externally, reprocessed materials.

 

Progress with consolidation and rationalisation of activities

As a diverse Group that has grown significantly through acquisition, particularly in our decking operations and distribution network, consolidation and rationalisation of our activities has been a core focus in recent years. The project, commenced in 2022, to consolidate decking production into a single site was completed on time during the first half of the year, enabling operational synergies to be realised from the second half of 2023.

The project to consolidate IT systems, as well as finance and administrative functions, across our distribution network is progressing with the system going live on a phased basis in Q4 2023 and the roll-out across our branch network anticipated to complete in H1 2024. The single system will result in improved information flow, enabling more streamlined reporting and real-time monitoring of KPIs.

Sustainability

The Group continues to focus on sustainability in all respects, ensuring that our operations and our products enable us to contribute to the UK's wider sustainability goals alongside consistently delivering a financial performance that makes us a sustainable investment and enables us to pay a sustainable dividend to our shareholders.

Environmental targets remain most relevant to the Group as an energy-intensive manufacturer of scale. Our main focus continues to be on reducing the carbon footprint of our operations, primarily through actions to reduce waste and energy usage, and we will report that energy intensity per £m of gross revenue improved again, reducing by 8% compared to 2022. We are also focussing on reducing the carbon footprint of our products, primarily through increased use of recycled raw materials, and contributing to the circular economy through the recycling of post-consumer and post-industrial waste. Our commitment to sustainability is underlined by the formalisation of sustainability metrics within the Group's new Sustainability-Linked Loan facility with our existing lenders, Barclays and HSBC and inclusion of sustainability-related KPIs in the 2023 Annual Report and Accounts.

The Group continues to develop its sustainability reporting and our 2023 Annual Report and Accounts will include an integrated Sustainability Report for the third year and reporting under TCFD requirements for the first time. We recognise that there is more work to do to better understand our Scope 3 emissions, develop meaningful targets and establish a viable pathway to net zero for the Group. As a result, during the year, the Group established a Sustainability Forum, chaired by the Group Finance Director and including employees from across the business with direct responsibility for sustainability matters. The Forum will meet quarterly, report to the Board and work towards formalising sustainability metrics and targets.

Market overview and outlook

The Group's core markets have been impacted by the unhelpful macroeconomic environment during 2023, with the CPA estimating an 11% fall in activity for private housing RMI and a 19% fall in activity for private housing new build. Epwin has outperformed the market to deliver a strong trading performance, with revenue declining by just 3% overall compared to 2022 (5% on a like-for-like basis). This is due to our inherently strong position as a manufacturer of scale and the market leader for many of our products, as well as the resilience of our business model. Our broad range of products and nationally recognised brands, wide range of materials capabilities and diverse customer base provides a number of routes to market, which has enabled the Group to successfully navigate a period of varied demand across the wider building products sector. The Group's commitment to independent distributors, who are more agile and appear to have weathered the softening market conditions better than larger distributors, remains a strength.

The main challenges during the year have been in relation to consumer confidence and spending and the housing market slowdown. Increases in the Bank of England base rate to combat inflation has had a twofold effect in the market, reducing demand for new build properties and reducing the number of transactions across all property types. This, in turn, impacts the level of improvement activity in the RMI sector, as improvements often take place soon after a property is purchased. The impact of the cost of living crisis and higher mortgage rates on disposable incomes and consumer confidence, has resulted in reduced demand and lower activity in the RMI market, with non-essential improvement works again most affected.

Private housing RMI

 

Market expectations

Private housing RMI is now the second largest construction sector having reached historic high levels at the end of 2021 and in early 2022. The CPA forecasts a fall of 4% in 2024 before returning to modest growth in 2025, driven by a sluggish housing market, consumer confidence and spending and the impact of interest rates on household finances. Spending on non-essential, smaller discretionary improvements is likely to be the most impacted. A majority of RMI activity relates to repairs and maintenance work that cannot be postponed indefinitely, providing a level of base activity for the Group. Though there are early signs that consumer confidence is improving with growth in real wages and employment levels remaining high, in the short term, conditions are likely to remain challenging.

Response and longer-term outlook

·    Continued operational focus to protect profit margins

·    Strong market positions with high-quality, energy efficient products and a national distribution network to service the market effectively

·    Multi-brand, multi-channel market approach maximises trading opportunities

·    Diverse product range and customer base provides resilience, as demonstrated by strong 2023 performance

·    Continued investment in new product development to ensure our product offer remains attractive to customers

 

Private new build housing

 

Market expectations

The CPA expects private housing starts and completions to fall by 4% in 2024, following a challenging year for housebuilders, which saw double-digit declines in both, before returning to growth in 2025, driven by a sluggish housing market and increased mortgage rates impacting demand, as well as a challenging planning environment. Our new build-facing businesses benefitted from housebuilders' increased focus on completing existing plots during the first part of 2023, driving demand for products such as our GRP porches, dormers and chimneys. With fewer plots commenced in 2023, and as housebuilders continue to slow their build rates and report reduced order books going into 2024, we are likely to see a short-term contraction in demand. Easing mortgage rates, demand for affordable housing and anticipated cuts to interest rates provide upside potential.

Response and longer-term outlook

·    Strong position as the market leader in GRP building components providing benefits to housebuilders

·    Progress on operational efficiencies during 2022 and 2023 means businesses are well placed to respond to changing levels of demand

·    Opportunities for our new build-facing businesses to sell into other markets

·    Medium and long-term drivers remain strong as the chronic undersupply of housing continues, with targets for new homes still not being met

 

Public housing RMI and new build

 

Market expectations

Social housing RMI is increasingly considered to be a priority and there is a growing focus on decarbonisation and need for urgent improvements to the general condition of the existing public housing stock. Issues relating to the quality of housing built and maintained by social landlords, including damp and general disrepair, are becoming increasingly high profile and there remains a national shortage of suitable housing. This should result in housing associations and local authorities diverting more spending to basic repairs and maintenance, which would benefit the Group. With growth limited by financially constrained local authorities and housing associations, the CPA is forecasting modest growth of 2% in public housing RMI in 2024 and 2025.

Response and longer-term outlook

·    Encouraging start to the year for our social housing-facing businesses

·    Long-term drivers remain strong, with underinvestment in the social housing stock, much of which does not yet meet minimum EPC requirements

·    Sustainability matters of particular importance to social housing providers and local authorities, Epwin is well placed with strong environmental and sustainability credentials

 

Summary

In 2023, the Group demonstrated its resilience and ability to deliver against an unhelpful market backdrop. Looking ahead to 2024, short-term uncertainty remains and expectations are that markets will continue to be challenging. However, our strategic priorities remain unchanged. Our focus will continue to be on operational efficiency, completion and integration of value-enhancing acquisitions, product and materials development and cross-selling and business development, alongside continued commitment to our sustainability goals. We are confident in the medium and long-term prospects for the Group and our ability to navigate the anticipated short-term uncertainty.

 

 

 

Jonathan Bednall

Chief Executive Officer

10 April 2024


Financial Review

·    Strong performance, ahead of market expectations, despite unhelpful economic backdrop

·    Bank facility renewed and maturity extended to 2026

·    Strong cash generation and robust balance sheet

·    4.80 pence full year dividend and share buyback programme commenced

 

Key financials

 

 

Year ended

31 December 2023

£m

Year ended

31 December

2022

£m

Revenue

345.4

355.8




Underlying operating profit

25.5

21.5

Acquisition-related costs

-

(0.7)

Share-based payments expense

(0.7)

(0.6)

Amortisation of acquired other intangible assets

(1.0)

(0.3)

Goodwill impairment

(4.2)

(3.0)

Contingent consideration adjustment

1.1

-




Operating profit

20.7

16.9

Underlying operating margin

7.4%

6.0%

Operating margin

6.0%

4.7%

  

Total revenue for the year ended 31 December 2023 was £345.4 million (2022: £355.8 million), 3% lower than an exceptionally strong comparative period and representing a resilient performance in unhelpful market conditions. As anticipated, the second half of the year saw a softening of demand in some of the Group's core markets, in particular private housing RMI and new build. The overall decrease in revenue was largely driven by reduced volumes and the impact of surcharge reductions as PVC input prices reduced, offset by the full year impact of 2022 acquisitions, which contributed £12.0 million of external revenue (2022: £3.8 million).

Underlying operating profit increased by 19% to £25.5 million in the period (2022: £21.5 million) as we continued to balance pricing and volumes in a competitive market environment, whilst also maintaining a sharp operational focus to control costs and recover our margin towards pre-pandemic levels. The underlying operating margin for the year of 7.4% (2022: 6.0%) represents an improvement of 140 basis points over the prior year. Significant price inflation in respect of our key raw materials, which has been a major theme in recent years, eased during the year although pay and other inflation continued to place pressure on overheads.

Operating profit for the year was £20.7 million (2022: £16.9 million), ahead of prior year, but was impacted by a small increase in non-underlying costs.

 



 

Reportable segments


 

 


Year ended

31 December 2023

Year ended

31 December

2022


£m

£m

Revenue



Extrusion and Moulding

210.3

221.1

Fabrication and Distribution

135.1

134.7

Total

345.4

355.8




Underlying segmental operating profit



Extrusion and Moulding

21.6

16.8

Fabrication and Distribution

7.4

7.5

Underlying segmental operating profit before corporate costs

29.0

24.3

Corporate costs

(3.5)

(2.8)

Underlying operating profit

25.5

21.5

Non-underlying items

(4.8)

(4.6)

Operating profit

20.7

16.9

 

Extrusion and Moulding

·    Revenue decreased by 5% in comparison to 2022, predominantly due to the impact of softening PVC input prices on levied surcharges, offset by the full year impact of Poly-Pure, which contributed £7.2 million of external revenue (2022: £3.4 million)

·    Steps taken by the business, during 2022 and continuing in 2023, on pricing and operational efficiency, as well as the impact of lower surcharges, have resulted in an improvement in underlying operating margin to 10.3% (2022: 7.6%), towards pre-pandemic levels

 

Fabrication and Distribution

·    Revenue was broadly flat against a strong 2022, predominantly due to reduced volumes against a challenging market backdrop and the softening in RMI demand seen particularly in our distribution network, often a barometer for the overall building products and construction market, during the second half of the year. This was offset by the acquisition of Mayfield which contributed £4.8 million of external revenue (2022: £0.4 million)

·    Underlying operating margin remained broadly in line with the previous year at 5.5% (2022: 5.6%), reflecting the Group's responsible approach to pricing in a competitive market environment and the steps taken to consolidate activities across the segment

 

Corporate costs

·    Corporate costs increased in comparison to 2022, primarily due to increased payroll costs caused by salary and wage inflation and an expansion of the Group's graduate scheme, increased insurance premiums and professional fees, particularly in respect of audit, and further investment in IT security

 

Non-underlying items

Non-underlying items of £4.8 million (2022: £4.6 million) were excluded from operating profit in arriving at underlying operating profit. Non-underlying items included; £1.0 million (2022: £0.3 million) relating to the amortisation of brand and customer relationship intangible assets recognised on acquisitions, the increase as a result of the acquisitions in the final quarter of 2022; share-based payments expense of £0.7 million (2022: £0.6 million) in respect of the Long-Term Incentive Plan ("LTIP") and Save As You Earn ("SAYE") schemes; acquisition-related costs of £nil (2022: £0.7 million); an adjustment to contingent consideration of £1.1 million (2022: £nil) and a goodwill impairment charge of £4.2 million (2022: £3.0 million).

 

The contingent consideration adjustment of £1.1 million (2022: £nil) related to the contingent consideration payable in respect of the Poly-Pure acquisition. During 2023, Poly-Pure was impacted by delays in the delivery and installation of capital investment to improve capacity and margins, as a consequence no contingent consideration was payable in respect of the year ended 31 December 2023, resulting in a reduction in the fair value of contingent consideration recognised compared to the prior year.

The goodwill impairment charge arises in relation to an assessment of the carrying value of the goodwill associated with the Ecodek CGU. As disclosed in the prior year, changes to regulations relating to the fire resistance of materials used on the exterior of high-rise buildings, following the Grenfell Tower fire in 2017, resulted in the business losing a core market for its wood-plastic composite decking. Continued uncertainty regarding future cash flows, as it continues to develop new markets and opportunities, has resulted in a further impairment charge of £4.2 million in the year.

Cash flow


Year ended

31 December

2023

Year ended

31 December

2022


£m

£m

Pre-tax operating cash flow

39.7

38.6




Tax paid

(2.1)

(2.2)

Acquisitions, net of cash acquired

-

(17.8)

Payment of deferred and contingent consideration

(1.8)

(0.3)

Net capital expenditure

(8.6)

(9.1)

Interest on borrowings

(3.1)

(1.6)

Net (repayment)/drawdown of borrowings

(5.5)

14.5

Lease payments

(14.3)

(10.6)

Purchase of own shares

(0.3)

-

Dividends

(6.6)

(6.2)




(Decrease)/increase in cash and cash equivalents

(2.6)

5.3

Opening cash and cash equivalents

15.1

9.8

Closing cash and cash equivalents

12.5

15.1

Borrowings

(24.6)

(29.8)

Lease assets

5.2

5.7

Lease liabilities

(92.5)

(92.6)

Closing net debt

(99.4)

(101.6)

Covenant net debt1

(14.4)

(17.9)

1 Covenant net debt represents a pre-IFRS 16 measure.

 

Cash flow

The Group remained strongly cash generative, with a pre-tax operating cash flow of £39.7 million (2022: £38.6 million). This included a net outflow from working capital for 2023 of £5.3 million, compared to a net inflow of £1.4 million in the prior year. Tax payments during the year of £2.1 million (2022: £2.2 million) were broadly consistent with those in the prior year. During the year, payments totalling £1.8 million (2022: £0.3 million) were made in respect of deferred and contingent consideration, with £1.0 million being the final contingent consideration relating to the acquisition of PVS in 2019 and £0.8 million representing the remaining deferred consideration in respect of Mayfield. Net capital expenditure was £8.6 million (2022: £9.1 million) as the Group continues to invest in line with its strategic objectives alongside ongoing replacement of plant and machinery as needed. Lease payments of £14.3 million (2022: £10.6 million) were higher than during 2022 due to the impact of rent reviews and lease renewals during 2022 and 2023, and the receipt of a lease incentive in the prior year. Net interest paid for the period of £3.1 million (2022: £1.6 million) was higher than during 2022 due to the impact of interest rates, which were heightened throughout 2023 due to increases in the Bank of England base rate. During the year, there was an outflow of £5.5 million (2022: £14.5 million inflow) in respect of borrowings, due to the payment of £0.5 million in fees relating to the renewal of the Group's banking facilities and as we reduced the level of borrowings by £5.0 million.

Net debt

Covenant net debt reduced to £14.4 million as at 31 December 2023 (2022: £17.9 million), ahead of our expectations and representing a covenant net debt to adjusted EBITDA ratio of less than 0.5x.

Bank facility renewal

In August 2023, the Group renewed its revolving credit facility with the existing lenders, Barclays and HSBC, on comparable terms. The new facility is a Sustainability-Linked Loan facility of £65 million with an initial term of three years and the option to extend for a further two years, where modest adjustments to the margin are applied based on the Group's achievement against annual targets relating to PVC recycling and energy intensity ratio. In combination with the £10 million overdraft facility, the new borrowing facility maintains the Group's significant financial headroom, which at 31 December 2023 was in excess of £60 million.

Share buyback and dividends

In November 2023, the Group announced the commencement of a share buyback programme for the repurchase of up to 3 million ordinary shares of 0.05 pence each for cancellation, as our strong cash generation and balance sheet provided the opportunity to take advantage of market conditions to repurchase shares at attractive levels and return additional funds to shareholders. The buyback is progressing well, and we anticipate completing this initial programme in Q2 2024. As at 31 December 2023, 366,723 ordinary shares, representing 0.3% of the pre-buyback issued share capital, had been repurchased and cancelled, at a total cost of £0.3 million.

Taking into account the outlook for the Group, and our strong financial position, the Board declared an interim dividend of 2.00 pence per share (2022: 1.90 pence per share), which was paid to shareholders in October 2023. The Board is recommending a final dividend for 2023 of 2.80 pence per share (2022: 2.55 pence per share) to be paid on 5 June 2024 to shareholders on the register on 10 May 2024. This full year dividend of 4.80 pence per share (2022: 4.45 pence per share), represents an increase of 8% over the prior year and is in line with the Board's policy of paying a progressive dividend that is approximately twice covered by adjusted profit after tax.

The Group intends to continue returning capital to shareholders both by way of our ongoing dividend policy and the buyback programme, alongside continued investment in the Group's strategy.

 

 

 

Christopher Empson

Group Finance Director

10 April 2024


 

Consolidated Income Statement and Other Comprehensive Income

for the year ended 31 December 2023

 

 

2023

2022

 


Note

£m

£m

 

Revenue

2

345.4

355.8

 

Cost of sales

 

(231.4)

(250.5)

 

Gross profit

 

114.0

105.3

 

Distribution expenses

 

(42.0)

(40.1)

 

Administrative expenses

 

(51.3)

(48.3)

 


 



 

Underlying operating profit

 

25.5

21.5

 


 



 

Acquisition-related costs

3

-

(0.7)

 

Share-based payments expense

3

(0.7)

(0.6)

 

Amortisation of acquired other intangible assets

3

(1.0)

(0.3)

 

Goodwill impairment

3

(4.2)

(3.0)

 

Contingent consideration adjustment

3

1.1

-


 

 

 

 

 

Operating profit

 

20.7

16.9

 

Finance costs

4

(7.5)

(5.0)

 

Profit before tax

 

13.2

11.9

 

Taxation

5

(3.9)

(3.5)

 

Profit for the year and total comprehensive income

 

9.3

8.4

 

 

 

 

 

 

 

 

 

 

 

Earnings per share

 

pence

pence

 

Basic

6

6.41

5.78

 

Diluted

6

6.31

5.71

 

 




Consolidated Balance Sheet

 

 



Equity

 



Ordinary share capital

 

0.1

0.1

Share premium

 

13.0

13.0

Merger reserve

 

25.5

25.5

Retained earnings

 

63.5

62.5

Total equity

 

102.1

101.1

as at 31 December 2023


Note

2023

£m

2022

£m

Assets

 

 

 

Non-current assets

 



Goodwill

8

89.0

93.2

Other intangible assets

 

5.9

6.3

Property, plant and equipment

 

35.4

34.3

Right of use assets

 

68.8

70.0

Lease assets

 

4.7

5.3

Deferred tax asset

 

-

0.8


 

203.8

209.9

Current assets

 

 

 

Inventories

 

37.4

41.1

Trade and other receivables

 

35.8

40.5

Lease assets

 

0.5

0.4

Income tax receivable

 

0.7

0.5

Cash and cash equivalents (excluding bank overdraft)

 

13.1

15.1


 

87.5

97.6

Total assets

 

291.3

307.5

 

 



Liabilities

 



Current liabilities

 



Bank overdraft

 

0.6

-

Lease liabilities

 

10.7

9.7

Trade and other payables

 

59.4

70.6

Deferred and contingent consideration

 

0.1

1.9

Provisions

 

1.1

1.7


 

71.9

83.9

Non-current liabilities

 



Other interest-bearing loans and borrowings

 

24.6

29.8

Lease liabilities

 

81.8

82.9

Deferred and contingent consideration

 

7.2

7.6

Provisions

 

2.5

2.2

Deferred tax liability

 

1.2

-


 

117.3

122.5

Total liabilities

 

189.2

206.4

 

 

 

 

Net assets

 

102.1

101.1



 

 

·                                              

Consolidated Statement of Changes in Equity

for the year ended 31 December 2023


 


 

Share capital

Share premium

Merger reserve

Retained earnings

Total


 

£m

£m

£m

£m

£m

Balance as at 1 January 2022

 

0.1

13.0

25.5

59.7

98.3

 

Comprehensive income







Profit for the year


-

-

-

8.4

8.4

Total comprehensive income


-

-

-

8.4

8.4

 

Transactions with owners recorded directly in equity







Share-based payments expense


-

-

-

0.6

0.6

Dividends


-

-

-

(6.2)

(6.2)

Total transactions with owners

 

-

-

-

(5.6)

(5.6)

 

 

 

 

 

 

 

Balance as at 31 December 2022 and 1 January 2023

 

0.1

13.0

25.5

62.5

101.1

 

Comprehensive income

 

 

 

 

 

 

Profit for the year

 

-

-

-

9.3

9.3

Total comprehensive income

 

-

-

-

9.3

9.3

 

Transactions with owners recorded directly in equity

 

 

 

 

 

 

Purchase of own shares

 

-

-

-

(2.4)

(2.4)

Share-based payments expense

 

-

-

-

0.7

0.7

Dividends

 

-

-

-

(6.6)

(6.6)

Total transactions with owners

 

-

-

-

(8.3)

(8.3)

 

 

 

 

 

 

 

Balance as at 31 December 2023

 

0.1

13.0

25.5

63.5

102.1


Consolidated Cash Flow Statement

for the year ended 31 December 2023


 

2023

2022



£m

£m

Cash flows from operating activities

 

 

 

Profit for the year

 

9.3

8.4

Adjustments for:

 

 

 

Depreciation, amortisation and impairment

 

24.6

20.1

Contingent consideration adjustment

 

(1.1)

-

Loss/(profit) on disposal of fixed assets

 

0.1

(0.4)

Net finance costs

 

7.5

5.0

Taxation

 

3.9

3.5

Share-based payments expense

 

0.7

0.6

Operating cash flow before movement in working capital

 

45.0

37.2

Decrease in inventories


3.7

0.3

Decrease in trade and other receivables


4.7

5.4

(Decrease) in trade and other payables

 

(13.4)

(4.4)

(Decrease)/increase in provisions

 

(0.3)

0.1

Pre-tax operating cash flow

 

39.7

38.6

Tax paid

 

(2.1)

(2.2)

Net cash inflow from operating activities

 

37.6

36.4

 

 

 

 

Cash flow from investing activities

 

 

 

Acquisition of subsidiary, net of cash acquired


-

(17.8)

Payment of deferred and contingent consideration


(1.8)

(0.3)

Acquisition of fixed assets

 

(8.6)

(9.1)

Net cash outflow from investing activities

 

(10.4)

(27.2)

 




Cash flow from financing activities




Interest on borrowings


(3.1)

(1.6)

Repayment of borrowings


(15.5)

(10.5)

Drawdown of borrowings


10.0

25.0

Net interest on lease liabilities


(3.4)

(3.2)

Net repayment of lease liabilities


(10.9)

(7.4)

Purchase of own shares


(0.3)

-

Dividends paid

 

(6.6)

(6.2)

Net cash outflow from financing activities

 

(29.8)

(3.9)

 

 



Net (decrease)/increase in cash and cash equivalents

 

(2.6)

5.3

Cash and cash equivalents at the beginning of year


15.1

9.8

Cash and cash equivalents at end of year

 

12.5

15.1

Secured bank loans


(24.6)

(29.8)

Lease assets


5.2

5.7

Lease liabilities

 

(92.5)

(92.6)

Net debt at end of year

 

(99.4)

(101.6)

 


 

1.       Basis of preparation

 

Whilst the financial information included in this Preliminary Announcement has been prepared on the basis of UK-adopted International Accounting Standards ("Adopted IFRSs"), this announcement does not itself contain sufficient information to comply with Adopted IFRSs.

The Group expects to publish full consolidated financial statements in April 2024. The financial information set out in this Preliminary Announcement does not constitute the Group's consolidated financial statements for the years ended 31 December 2023 or 2022 but is derived from those financial statements which were approved by the Board of Directors on 10 April 2024. The auditor, RSM UK Audit LLP, has reported on the Group's consolidated financial statements and the report was unqualified and did not contain a statement under section 498 (2) or 498 (3) of the Companies Act 2006.

The statutory financial statements for the year ended 31 December 2023 have not yet been delivered to the Registrar of Companies and will be delivered following the Company's Annual General Meeting.

The Group financial statements consolidate those of the Company and its subsidiaries (together referred to as the "Group"). The Group financial statements are prepared on the historical cost basis except where UK-adopted International Accounting Standards require an alternative treatment.

The Group financial statements have been prepared and approved by the directors in accordance with UK-adopted International Accounting Standards.

The Group's accounting policies are set out in the 2022 Annual Report and Accounts and have been applied consistently in 2023.

Going concern

The Directors have prepared cash flow forecasts for a period of at least 12 months from the date of approval of these financial statements, which indicate that, taking account of reasonably possible downsides including the ongoing anticipated impact of current macroeconomic factors on the operations and its financial resources, the Group and Parent Company will have sufficient funds to meet their liabilities as they fall due for that period.

The Board continues to closely monitor the macroeconomic environment, including housing market activity, inflation and Bank of England interest rate announcements. The Group balance sheet remains robust with significant financial headroom on committed banking facilities, which were renewed during the year through to August 2026 with an option to extend for a further two years. The banking facilities comprise a £65 million Revolving Credit Facility and £10 million overdraft facility. The Group has traded profitably throughout 2023, and to the date of this announcement, and its financial position remains strong, with net debt better than expectations at the year end and maintaining ongoing significant headroom on its banking facilities and covenants.

The Group prepares, and the Board reviews, detailed budgets and forecasts, which it has confidence in achieving in a normal business environment. The Directors have prepared cash flow, facility headroom and financial covenant forecasts for a period of at least 12 months from the date of approval of these financial statements. The Directors considered the financial resources of the Group, as well as its forecasts and severe but plausible stress test scenarios.

The Group starts 2024 with significant headroom on its banking facilities and the forecasts show that there is sufficient liquidity and headroom to ensure compliance with all covenants throughout the going concern period.

 

Consequently, the Directors are confident that the Group and Parent Company will have sufficient funds to continue to meet their liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

 

2.       Segmental reporting

Segmental information is presented in respect of the Group's reportable operating segments in line with IFRS 8: Operating Segments, which requires segmental information to be disclosed on the same basis as it is viewed internally by the Chief Operating Decision Maker. The Chief Operating Decision Maker is considered to be the Board of Directors.

Operating segments                      Operations

 

Extrusion and Moulding                Extrusion and marketing of PVC and aluminium window profile systems, PVC cellular roofline and cladding, decking, rigid rainwater and drainage products as well as Wood Plastic Composite ("WPC") and aluminium decking products. Moulding of Glass Reinforced Plastic ("GRP") building components. Re-processing of PVC building materials.

 

Fabrication and Distribution        Fabrication, marketing and distribution of windows and doors, cellular roofline, cladding, rainwater, drainage and decking products.

 

 

 

2022

 


£m

 £m

Revenue from external customers



Extrusion and Moulding - total revenue

250.5

263.0

Inter-segment revenue

(40.2)

(41.9)

Extrusion and Moulding - external revenue

210.3

221.1




Fabrication and Distribution - total revenue

135.2

134.8

Inter-segment revenue

(0.1)

(0.1)

Fabrication and Distribution - external revenue

135.1

134.7

Total revenue from external customers

345.4

355.8

 

Segmental operating profit



Extrusion and Moulding

21.6

16.8

Fabrication and Distribution

7.4

7.5

Segmental operating profit before corporate costs 

29.0

24.3

Corporate costs

(3.5)

(2.8)

Underlying operating profit

25.5

21.5

Non-underlying items (see note 3)

(4.8)

(4.6)

Operating profit

20.7

16.9



 

 

3.       Non-underlying items

Operating profit is stated after charging/(crediting) the following non-underlying items:

 

 

2023

2022


£m

£m

Acquisition-related costs

-

0.7

Share-based payments expense

0.7

0.6

Amortisation of acquired other intangible assets

1.0

0.3

Goodwill impairment (see note 8)

4.2

3.0

Contingent consideration adjustment

(1.1)

-

Non-underlying items

4.8

4.6

 

Acquisition-related costs

Non-underlying items of £0.7 million in 2022 relate to legal and professional fees associated with the acquisitions of Poly-Pure and Mayfield during that year.

Share-based payments expense

The share-based payment expense of £0.7 million (2022: £0.6 million) comprises IFRS 2: Share-based payment charges of £0.4 million (2022: £0.3 million) in respect of the Long-Term Incentive Plan and SAYE schemes of £0.3 million (2022: £0.3 million).

Amortisation of acquired other intangible assets

Amortisation of brand and customer relationship intangible assets of £1.0 million (2022: £0.3 million) acquired through business combinations.

Contingent consideration adjustment

The contingent consideration adjustment of £1.1 million (2022: £nil) related to the contingent consideration payable in respect of the Poly-Pure acquisition. During 2023, Poly-Pure was impacted by delays in the delivery and installation of capital investment to improve capacity and margins, as a consequence no contingent consideration was payable in respect of the year ended 31 December 2023, resulting in a reduction in the fair value of contingent consideration recognised compared to the prior year.

 

4.       Finance costs

 

2023

2022


£m

£m

Interest expense on borrowings

3.1

1.6

Amortisation of loan fees

0.3

0.2

Contingent consideration: Discount unwind on liabilities

0.7

-

Net interest on lease liabilities

3.4

3.2

Total finance costs

7.5

5.0

 

Amortisation of loan fees includes the write-off of £0.2 million remaining unamortised loan fees associated with the previous loan facility.

5.       Taxation


2023

2022


£m

£m

Current tax



Current period

2.5

1.6

Prior period

(0.6)

(0.5)

Total current tax charge

1.9

1.1




Deferred tax



Current period

1.8

1.4

Prior period

0.2

1.0

Total deferred tax charge

2.0

2.4




Total tax charge

3.9

3.5

 

UK corporation tax is calculated at 23.5% (2022: 19%) of the estimated assessable profit for the year.

 

The Group's total income tax charge is reconciled with the weighted average rate of UK corporation tax for the year of 23.5% (2022: 19%) as follows:

 

2023

2022


£m

£m

Profit before tax

13.2

11.9

Tax at standard UK corporation tax rate of 23.5% (2022: 19%)

3.1

2.3




Factors affecting the charge for the period:



Expenses not deductible

1.2

1.0

Super deduction benefit

-

(0.3)

Prior period

(0.4)

0.5

Total tax charge

3.9

3.5



 

6.       Earnings per share ("EPS")

Basic earnings per share are calculated by dividing the profit attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the period. The weighted average number of shares has been adjusted for the issue and cancellation of shares during the period.

Diluted earnings per share are calculated by dividing the profit attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the period, plus the dilutive potential ordinary shares arising from share options in issue at the end of the period.

 


2023

2022

 

EPS summary

pence

pence

 

Basic EPS

6.41

5.78

 

Diluted EPS

6.31

5.71

 

Number of shares



2023

No.

2022

No.

Weighted average number of ordinary shares (basic)

145,142,133

145,305,993

Effect of share options in issue

2,300,457

1,832,645

Weighted average number of ordinary shares (diluted)

147,442,590

147,138,638

 

7.       Dividends
 

 

2023

2023

2022

2022


£m

pence per share

£m

pence per share

Previous year final dividend

3.7

2.55

3.4

2.35

Current year interim dividend

2.9

2.00

2.8

1.90

 

6.6

 

6.2

 

The Board is recommending a final dividend of 2.80 pence per share in respect of the financial year ended 31 December 2023.

 

8.       Goodwill

 

 

 


 


Goodwill





£m

Cost





At 1 January 2022




75.5

Acquisitions through business combinations in 2022




20.7

At 31 December 2022




96.2

Acquisitions through business combinations in 2023




-

At 31 December 2023

 

 

 

96.2






Accumulated impairment losses





At 1 January 2022 and 31 December 2022

 

 

 

3.0

Impairment

 

 

 

4.2

At 31 December 2023

 

 

 

7.2

 

 

 

 

Net book value

 

 

 

At 31 December 2023

 

 

89.0

At 31 December 2022

 

 

93.2

 

Impairment

Changes to regulations relating to the fire resistance of materials used on the exterior of high-rise buildings, following the Grenfell Tower fire in 2017, resulted in Ecodek losing a core market for its wood-plastic composite decking. Since then, increased uncertainty regarding future cash flows has resulted in a reduction in the value-in-use of the CGU. In the prior year an impairment charge of £3.0 million was recognised, the remaining goodwill of £4.2 million was fully impaired in 2023 to reflect the fact that the discounted present value of future cash flows did not support the carrying value of the CGU.

9.       Cautionary statement

This Report contains certain forward-looking statements with respect of the financial condition, results, operations and business of Epwin Group Plc. Whilst these statements are made in good faith based on information available at the time of approval, these statements and forecasts inherently involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause the actual result or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts. Nothing in this Report should be construed as a profit forecast.

10.     Annual General Meeting

The Annual General Meeting of the Company will be held on 21 May 2024 at Squire Patton Boggs (UK) LLP, Rutland House, 148 Edmund Street, Birmingham, B3 2JR.

If you wish to attend the AGM in person, please pre-register your intention to do so by emailing epwin@mhpc.com. Please state 'Epwin Group Plc: AGM' in the subject line of the email and include your full name and investor code (if available), by no later than 10.30am on 17 May 2024.

To facilitate the answering of any questions that shareholders have, or would normally raise, during the course of the AGM, shareholders are requested to submit any questions that they may have via email, in good time, ahead of the meeting to epwin@mhpc.com. Please include a Shareholder Reference Number in any correspondence.            

11.     Electronic communications

The full Annual Report and Accounts for the year ended 31 December 2023 are to be published on the Company's website, together with the Notice convening the Company's 2023 Annual General Meeting by 26 April 2024. Copies will also be sent out to those shareholders who have elected to receive paper communications. Copies can be requested by writing to the Company Secretary, Epwin Group Plc, 1b Stratford Court, Cranmore Boulevard, Solihull, B90 4QT or email to investors@epwin.co.uk

 

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Epwin Group (EPWN)
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