Half Year Trading Update and Notice of Results

RNS Number : 0973O

Epwin Group PLC

16 August 2017

 

16 August 2017

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014.  Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

Epwin Group Plc

("Epwin" or the "Group")

Half Year Trading Update and Notice of Results

Epwin Group Plc, the low maintenance building products manufacturer, supplying businesses in the Repair, Maintenance and Improvement ("RMI"), new build and social housing sectors, announces its half year trading update and notice of its half year results announcement.

Trading update

Revenues and operating profits in the first half year were in line with the Board's expectations despite market conditions, particularly in the key RMI market, remaining challenging.  As reported in the AGM Statement in May, materials price inflation has also had an increasingly significant impact upon costs in the period and this continues to be the case.

In response to the on-going market conditions, since the half year the Group has commenced a programme aimed at adjusting its capacity and cost base.

Additionally, since the AGM the Group has noted changing circumstances within its customer base affecting two of its customers, each accounting for around 5% of the Group's revenue.  One has significant funding issues and is undertaking a strategic review, whilst the other has sold its plastic distribution business which is principally supplied by Epwin, to a competitor of the Group. The implications, if any, of these matters remain unclear at this stage.   

Aside from these two specific issues, the Board's current view is that the outturn for the full year ending 31 December 2017 will be marginally below market expectations.  The Group's financial position remains strong with net debt at the half year less than one times 2016 EBITDA and with significant funding headroom to continue to invest in the business.   

Jon Bednall, Chief Executive, commented:

"Whilst the current market conditions continue to be challenging, we remain confident of the long term growth drivers in the RMI market and continue to progress with our strategy, focused on operational improvement, selective acquisitions to broaden our product portfolio, cross‐selling across our brands and product development. We are confident in continuing our record of strong cash generation and our ability to offer an attractive dividend to shareholders."   

Notice of results

The Group will announce its half year results for the six months ended 30 June 2017 on Wednesday 13 September 2017.

Contact information

Epwin Group Plc Jon Bednall, Chief Executive Chris Empson, Group Finance Director	020 3128 8100
Zeus Capital Limited (Nomad and Joint Broker) Nick Cowles /  Jamie Peel Dominic King / John Goold Panmure Gordon (UK) Limited (Joint Broker) Erik Anderson / Andrew Potts	0161 831 1512 0203 829 5000 0207 886 2500
MHP Communications Reg Hoare / Charlie Barker	0203 128 8540

 

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