Half Year Trading Update and Notice of Results

RNS Number : 4929Y

Epwin Group PLC

22 August 2018

 

22 August 2018

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, a leading manufacturer of low maintenance building products, 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 in the first half year of £142.4m (H1 2017: £149.9m) were better than anticipated, despite the impact of the adverse weather experienced in the early part of 2018, demonstrating the Group's resilience after the loss of its two largest customers in the second half of 2017.

The Board anticipates adjusted profit before tax for the full year to be in line with market expectations.  As reported in the AGM statement in May, there is a greater weighting of profit towards the seasonally busier second half of the year than in more recent years and materials cost inflation has continued to be an issue for the industry.  Additionally, there have been some modest delays as we seek to maximise the benefits from the site consolidation programmes.

Market conditions, particularly in the key RMI market, remain lacklustre, with depressed consumer confidence and weak demand for big ticket purchases, however, the medium-term drivers for the Group's products remain positive with under investment in RMI and continued demand for new homes.   The Group's financial position remains strong with good cash generation in the half year and net debt of £28.6m representing less than one times 2017 EBITDA.  This gives the Group significant funding headroom to continue to invest in the business and progress with its strategy.   

Notice of results

The Group will announce its half year results for the six months ended 30 June 2018 on Wednesday 12 September 2018.

Jon Bednall, CEO of Epwin, commented:

"Despite challenging market conditions continuing, the Group delivered a solid financial performance in the first half. The Group continues to make good progress in pursuit of its broader strategic objectives and remains confident in the medium-term drivers in the RMI market."

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 John Goold / Dominic King 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 / Florence Mayo	0203 128 8100

 

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