REG - Epwin Group PLC - Year-end trading update and notice of results

EpwinAnnouncement

25/01/2024 07:00

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RNS Number : 8262A  Epwin Group PLC  25 January 2024

25 January 2024

 

Epwin Group Plc

("Epwin", the "Company" or the "Group")

 

Year-end trading update and notice of results

 

FY 2023 underlying operating profit expected to be towards upper end of market
expectations

 

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 its year-end trading update in respect of the
year to 31 December 2023 ("FY 2023").

 

Strong trading performance in FY 2023

 

Further to the trading update announced on 27 November 2023, trading remained
resilient through to the end of the year, with FY 2023 revenues in line with
market expectations(1).

 

The Group has continued to effectively manage the well-publicised issues of
labour, energy and other inflationary cost pressures with margins recovering
to pre-pandemic levels. Raw material cost inflation has continued to ease,
although PVC resin prices remain at elevated levels. As a result, subject to
audit, the Group now expects to report underlying operating profit for FY 2023
towards the upper end of the range of current market expectations(1), which
represents a significant increase over FY 2022.

 

The Group has continued to make good progress with its strategy, including
continued operational improvement, new product development, integrating recent
value-enhancing acquisitions and sustainability initiatives.

 

Strong cash generation driving better than expected year-end net debt

 

Cash generation has remained strong and the Group expects to report covenant
net debt (pre-IFRS 16) better than current market expectations(1) at 31
December 2023 of c. £14.5 million (2022: £17.9 million). This represents
a year-end leverage of less than 0.5x adjusted EBITDA.

 

Confident outlook for FY 2024

 

These results indicate that the current drivers for the Group's range of low
maintenance, energy efficient and recyclable building products are resilient
and trading in the first weeks of 2024 has been in line with the Board's
expectations.

 

The Board remains confident of executing the Group's strategy and in the
strength of the medium and long-term drivers of its markets, despite the
short‐term macro-economic outlook.

 

Notice of results

 

The Group will announce its full year results for the year to 31 December 2023
on Wednesday 10 April 2024.

 

Jon Bednall, Chief Executive Officer, said:

"The Group has, once again, delivered financial performance at or ahead of
market expectations, with FY 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.

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

 

 

((1)) Based on Company compiled consensus, the Board believes the average
analyst forecast for 2023 revenues to be £349.8m, underlying operating profit
to be £23.9 million (within a range of underlying operating profit
expectations of £22.0m to £25.0m) and covenant net debt (pre-IRS16) to
be £17.9 million.

 

 

Ends.

Contact information

 Epwin Group Plc                                     078 3462 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                                                 078 3462 3818

 Reg Hoare / Charlie Barker / Finn Taylor            epwin@mhpc.com (mailto:epwin@mhpc.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/
(https://url.avanan.click/v2/___http:/www.epwin.co.uk/investors/___.YXAxZTpzaG9yZWNhcDphOm86MDFmZThkYWQ4NzY4MjczODhhOTIxN2M0ZTJiMjcxMzk6NjpmNGE3OjExMjk0ODdhZGYzZjNlMDI3N2NkMGNlYmZmYzBmNGYyNjY4NzJhMTk0MjljMmU3ZTcwMzg2ZjFiMGU1MTRhY2Y6cDpU)

 

 

 

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