Year-end trading update and notice of results

Epwin Group PLC

25 January 2024

 

25 January 2024

Epwin Group Plc

("Epwin", the "Company" or the "Group")

Year-end trading update and notice of results

FY 2023 underlying operating profit expected to be towards upper end of market expectations

Epwin Group Plc (AIM: EPWN), 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, is pleased to announce its year-end trading update in respect of the year to 31 December 2023 ("FY 2023").

Strong trading performance in FY 2023

Further to the trading update announced on 27 November 2023, trading remained resilient through to the end of the year, with FY 2023 revenues in line with market expectations¹.

The Group has continued to effectively manage the well-publicised issues of labour, energy and other inflationary cost pressures with margins recovering to pre-pandemic levels. Raw material cost inflation has continued to ease, although PVC resin prices remain at elevated levels. As a result, subject to audit, the Group now expects to report underlying operating profit for FY 2023 towards the upper end of the range of current market expectations¹, which represents a significant increase over FY 2022. 

The Group has continued to make good progress with its strategy, including continued operational improvement, new product development, integrating recent value-enhancing acquisitions and sustainability initiatives.

Strong cash generation driving better than expected year-end net debt

Cash generation has remained strong and the Group expects to report covenant net debt (pre-IFRS 16) better than current market expectations¹ at 31 December 2023 of c. £14.5 million (2022: £17.9 million). This represents a year-end leverage of less than 0.5x adjusted EBITDA.

Confident outlook for FY 2024

These results indicate that the current drivers for the Group's range of low maintenance, energy efficient and recyclable building products are resilient and trading in the first weeks of 2024 has been in line with the Board's expectations. 

The Board remains confident of executing the Group's strategy and in the strength of the medium and long-term drivers of its markets, despite the short‐term macro-economic outlook.

Notice of results

The Group will announce its full year results for the year to 31 December 2023 on Wednesday 10 April 2024.

Jon Bednall, Chief Executive Officer, said:

"The Group has, once again, delivered financial performance at or ahead of market expectations, with FY 2023 results significantly ahead of a strong 2022 comparative.  This is testament to the combined efforts of all my Epwin colleagues and I would like to thank them for this and for the good progress we have continued to make with both our strategic and sustainability targets.

We remain confident in the Group's future prospects, despite the short‐term macroeconomic headwinds and expect to make further progress this year."

⁽¹⁾ Based on Company compiled consensus, the Board believes the average analyst forecast for 2023 revenues to be £349.8m, underlying operating profit to be £23.9 million (within a range of underlying operating profit expectations of £22.0m to £25.0m) and covenant net debt (pre-IRS16) to be £17.9 million.

Ends.

Contact information

Epwin Group Plc Jon Bednall, Chief Executive Chris Empson, Group Finance Director	078 3462 3818
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 Reg Hoare / Charlie Barker / Finn Taylor	078 3462 3818 [e-mail]

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.

Information for investors can be accessed www.epwin.co.uk/investors/

 

END