Year-end trading update and notice of results

RNS Number : 7441N

Epwin Group PLC

25 January 2023

 

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 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018.  Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

25 January 2023

Epwin Group Plc

("Epwin" or the "Group")

Year-end trading update and notice of results

Epwin Group Plc (AIM: EPWN) ("Epwin", "the Company" or the "Group"), the leading manufacturer of energy efficient and 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 to 31 December 2022 ("FY 2022").

Trading performance

T rading remained robust through to the end of the year, with revenues increasing by 8% to approximately £355 million (2021: £329.6 million). This was predominantly driven by pricing actions to recover the significant cost inflation in the sector, as well as bolt-on acquisitions completed in 2022 which contributed revenues of £4 million in the year.

The Group has continued to navigate the well-publicised issues of labour, energy and raw material cost inflation. As a result, the Group expects to report adjusted profit before tax for FY 2022 in line with current market expectations¹, subject to audit, which is a significant increase over FY 2021. 

Balance sheet and liquidity

Cash generation has remained strong and the Group expects to report covenant net debt (pre-IFRS 16) as at 31 December 2022 of c. £18 million (2021: £9.4 million), an improvement on current market expectations¹ and including the cost of two acquisitions in FY2022 for a combined cash consideration of c.£19 million. This represents a year-end leverage of c.0.7x adjusted EBITDA.

Acquisition of Hampton Decking

The completion of selective, value enhancing acquisitions remains a core part of Epwin's strategy and in December 2022 the Group acquired Hampton Decking Limited for a net cash consideration of c.£4 million. The Group supplies high quality decking and related products to the holiday park industry primarily under the Mayfield name. The acquisition further extends the Group's operations in these markets, which have seen good growth over recent years.  This follows the Group's acquisition of Poly-Pure Limited in September for initial cash consideration of c.£15 million, further enhancing the Group's materials recycling capabilities as well as delivering on its sustainability strategy. 

Current trading

Trading in the first weeks of 2023 has remained robust and has been in line with the Board's expectations. We remain confident of executing our strategy and in the strength of the medium and long-term drivers of our markets, despite the current macro-economic outlook.

Notice of results

The Group will announce its full year results for the year to 31 December 2022 on Tuesday 4 April 2023.

Jon Bednall, Chief Executive Officer, said:

"I am grateful once again to all of the Group's staff who worked hard together to deal with the challenges of 2022 and deliver this strong overall performance.

I am also delighted to welcome the Poly-Pure and Hampton Decking businesses to the Group, both of which continue to broaden the Group's product range, materials capabilities and sustainability credentials.

Our trading performance remained robust through 2022 and we continue to execute our strategy, confident in the strength of the medium and long-term drivers for our markets, despite the short-term macro-economic challenges."

Contact information

Epwin Group Plc Jon Bednall, Chief Executive Chris Empson, Group Finance Director	0203 128 8168
Shore Capital (Nominated Adviser and Joint Broker) Corporate Advisory Daniel Bush / Iain Sexton Corporate Broking Fiona Conroy Zeus Capital Limited (Joint Broker) Dominic King / Nick Searle	0207 408 4090 0203 829 5000
MHP Communications Reg Hoare / Charlie Barker / Pauline Guenot	0203 128 8168 [e-mail]

⁽¹⁾ Based on Company compiled consensus, the Board believes the average analyst forecast for 2022 adjusted profit before tax to be £16.3 million and covenant net debt (pre-IRS16) to be £20.6 million.

About Epwin

Epwin is the leading manufacturer of energy efficient and 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

 

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