Year-end trading update and notice of results

RNS Number : 6484A

Epwin Group PLC

23 January 2020

 

23 January 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")

Year-end 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, is pleased to announce its trading update in respect of the year ended 31 December 2019 and notice of its full year results.   

Trading update

The Board anticipates that the Group's underlying operating profit and adjusted profit before tax for the year ended 31 December 2019 will be within the range of market expectations (on a pre IFRS16 basis).  Net debt is expected to be c.£16.4m representing approximately 0.6x underlying EBITDA (pre IFRS16). 

This result was delivered despite market conditions weakening in the second half of the year as consumer confidence continued to be adversely affected by macro-economic uncertainty, as has been widely reported across the sector. 

Delivering on our strategy

The Group continued to make significant progress to plan with its site consolidation and rationalisation programme, in particular at the Telford site:

·    As reported at the Group's Half Year Results, the purchase, development and sale and leaseback of the new Telford facility is expected to generate a net cash surplus of at least £8.0 million, the effect of which is principally reflected in the Group's reduced net debt position as at 31 December 2019. The leases are on an arm's length basis at commercial market rates.

·    The construction of this new warehousing and finishing facility is nearing completion, with the Window Systems warehousing operations due to be relocated during H1 2020, as planned and on schedule.

·    Combined with the consolidation of the Macclesfield extrusion site during 2018, the footprint of Window Systems will have been consolidated from seven sites into two. This will streamline the logistics operations and improve customer service, whilst increasing capacity and providing a base for our new aluminium operation.

The Group's strategy continues to be based on operational improvement, broadening the product portfolio and capabilities, selective acquisitions, cross selling and market share growth in key sectors to build a platform for future growth.

Notice of results

The Group will announce its full year results for the year ended 31 December 2019 on Thursday 2 April 2020. 

Jon Bednall, CEO of Epwin, commented:

"We made further strategic progress in 2019, continuing to invest in our facilities and product range whilst reducing net debt. Overall, the Group delivered a solid trading performance despite tougher market conditions in the second half. 

Considerable headway was made with our strategy of site consolidation and broadening our product portfolio, as we continue our operational transformation, alongside advancing our product offer and routes to market. We believe these actions put the Group in a strong position to service its customers and markets.

We expect to make further progress in 2020, notwithstanding continued caution about end markets, and remain confident in the long term drivers in the RMI market."

Contact information

Epwin Group Plc Jon Bednall, Chief Executive Chris Empson, Group Finance Director	0203 128 8572
Shore Capital (Nominated Advisor and Joint Broker) Corporate Advisory Edward Mansfield / Daniel Bush / Hugo Masefield Corporate Broking Fiona Conroy Zeus Capital (Joint Broker) John Goold / Dominic King	020 7408 4090 0203 829 5000
MHP Communications Reg Hoare / Charlie Barker / Florence Mayo	0203 128 8572

About Epwin

Epwin is a leading manufacturer of low maintenance building products, 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

 

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