Year-end trading update and notice of results
20/01/2022 07:00
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RNS Number : 0064Z Epwin Group PLC 20 January 2022
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20 January 2022
Epwin Group Plc
("Epwin" or the "Group")
Year-end trading update and notice of results
Strong performance in FY 2021, confident outlook
Epwin Group Plc (AIM: EPWN) ("Epwin", "the Company" or the "Group"), the
leading manufacturer of 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 ended 31
December 2021 ("FY 2021").
Trading update
The Group is pleased to report that trading remained strong through to the end
of the year, with revenues for FY 2021 expected to be approximately £330m, up
by 37% compared to 2020 and 17% compared to 2019. This has been driven by a
combination of the ongoing strength of demand in the RMI market, price
increases and recent bolt-on acquisitions.
The Group has continued to successfully navigate its way through the
sector-wide operational, inflationary and supply chain pressures caused by the
ongoing impact of Covid-19 and heightened demand levels. Accordingly, the
Group now expects to report adjusted profit before tax for FY 2021 modestly
ahead of current expectations(1), subject to audit.
Cash generation remained strong in the second half of the year, with covenant
net debt (pre-IFRS 16) as at 31 December 2021 significantly reduced to
approximately £9m (2020: £18.5m; 2019: £16.4m), better than the Board's
expectations. This was achieved despite the Group completing several bolt-on
acquisitions during the year, totalling £5.3m, including one acquisition in
the second half of the year. Year-end leverage was less than 0.5 x adjusted
EBITDA.
Current trading
Trading in the first two weeks of 2022 has remained strong and has been in
line with the Board's expectations. The Board continues to monitor the
development of the Covid-19 pandemic whilst managing the impact of absences
across the workforce during the early part of 2022.
Notice of results
The Group will announce its full year results for the year ended 31 December
2021 on Wednesday 6 April 2022.
Jon Bednall, Chief Executive Officer, said:
"I am pleased to report that our trading performance in the second half and
for the year as a whole was strong, despite the well-reported supply chain and
inflationary pressures. This is testament to the hard work of our people in a
year which has seen many challenges for businesses and individuals.
We are optimistic for the Group's trading prospects in 2022 and remain
confident in the strength of the medium and long-term drivers of our markets."
Contact information
Epwin Group Plc 0203 128 8540
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
John Gould / Dominic King
MHP Communications 0203 128 8540
Reg Hoare / Charlie Barker / Florence Mayo / Pauline Guenot Epwin@mhpc.com
((1)) Based on Company compiled consensus, the Board believes the average
analyst forecast for 2021 adjusted profit before tax to be £12.8m.
About Epwin
Epwin is the leading manufacturer of 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 (http://www.epwin.co.uk/) /investors
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