Trading Update and Notice of Results

RNS Number : 7717I

Epwin Group PLC

16 December 2020

 

16 December 2020

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")

Pre-close trading update and notice of results

Epwin Group Plc (AIM: EPWN) ("Epwin" 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 a trading update in respect of the year ended 31 December 2020 ("FY 2020") and notice of its full year results.

Trading ahead of expectations for FY 2020

The Group has experienced better than expected trading conditions since reporting its half year results to the end of June 2020 on 10 September 2020. Demand from the RMI market, which represents around 70% of Group revenues, has been particularly strong during the fourth quarter of the year, while demand from the new build and social housing sectors has also been increasing.

As previously reported, Group revenues on a like-for-like basis were up 2% in July and 3% in August. This improving trend has continued, with Group revenues in the period 1 July 2020 to 30 November 2020 5% ahead of the same period in 2019. Within this, window systems and cellular extrusion sales were 9% ahead of 2019. Accordingly, whilst H1 2020 revenues were down 33.4% on H1 2019, year to date revenues to 30 November 2020 have continued to recover and were 15% lower than the same period in 2019.

As a result, the Group's revenues and adjusted profit before tax for the year ended 31 December 2020 are anticipated to be ahead of current market expectations. Net debt at 31 December 2020 is also expected to be lower than current market expectations.

As reported in Epwin's half year results, demand for the Group's extruded products has been particularly strong. Consequently, supply chains have been, and continue to be, under pressure both from the impact of the pandemic and the subsequent acceleration of demand. This has impacted customer lead times for certain products, as well as having an impact on the efficiency of the Group's operations and the commissioning of the new warehousing facility in Telford.  The Group continues to take all appropriate actions to manage its supply chain and secure material supply. The benefits of improved operating efficiencies and the new facility are now expected to be seen from the second half of 2021.

The Group's second half performance has demonstrated the underlying strength of the business and its principal markets. This has been achieved despite the many challenges that the coronavirus pandemic has presented and the ongoing uncertainty caused by continuing Brexit trade talks.

The Board continues to be mindful of the importance of dividends to shareholders and based on the performance in 2020 to date, anticipates recommending the payment of a final dividend for the year.

Notice of results

The Group expects to announce its full year results for the year ended 31 December 2020 on 15 April 2021.

Jon Bednall, Chief Executive Officer, said:

"Against the backdrop of the disruption caused by the pandemic, our performance this year and the strong underlying demand from the markets we serve have been encouraging as we have exceeded our revised expectations.

I am grateful for the hard work and continual effort of all of our people whose combined efforts have demonstrated the resilience of our business - from the closure of operations and uncertainties of the second quarter through to the supply chain challenges and unprecedented increases in demand for our extruded products in the second half. We look forward to a more positive 2021, with the medium and long-term drivers of our markets remaining strong."

Contact information

Epwin Group Plc Jon Bednall, Chief Executive Chris Empson, Group Finance Director	0203 128 8572
Shore Capital (Nominated Adviser and Joint Broker) Corporate Advisory Edward Mansfield / Daniel Bush / Hugo Masefield Corporate Broking Fiona Conroy Zeus Capital Limited (Joint Broker) John Gould / Dominic King	0207 408 4090 0203 829 5000
MHP Communications Reg Hoare / Charlie Barker / Florence Mayo	0203 128 8572

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.

www.epwin.co.uk

 

END

 

 

NORUVRWRRKUUAAA