Half-year trading update and notice of results

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 Jon Bednall, Chief Executive Chris Empson, Group Finance Director	0203 128 8168
Shore Capital (Nominated Adviser 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 / Pauline Guenot	078 3462 3818 [e-mail]

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/

 

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