Half Year Results

RNS Number : 1697Z

Epwin Group PLC

16 September 2015

 

16 September 2015

Epwin Group Plc

Half year results for the six months to 30 June 2015

Continuing solid financial performance

Epwin Group Plc (AIM: EPWN) ("Epwin" or the "Group"), the vertically integrated manufacturer of low maintenance building products, supplying the Repair, Maintenance and Improvement ("RMI"), new build and social housing sectors, is pleased to announce its half year results for the six months to 30 June 2015, which are delivering the expected improvements in underlying earnings and cash flow.

Highlights for the period include:

·     Underlying operating profit* increased by 31.1% to £8.0 million and underlying operating profit margin* to 6.4% from 4.9% for the same period in 2014.

·     Earnings per share of 4.59 pence, an increase from 2.86 pence in the same period in 2014.

·     Interim dividend of 2.12 pence per ordinary share (2014: 1.41 pence).

·     Operating cash inflow up £2.6 million to £4.9 million.

·     Revenue from continuing operations broadly in line with H1 2014 at £124.1 million.

·     Investment in property, plant and equipment as the Group prepares to launch a new, market leading window profile system in early 2016.

·     Efficiencies and cost savings continue to improve profits despite flat markets in H1.

·     Despite challenging market conditions, full year profits anticipated to be in line with expectations for the year ending 31 December 2015.

 (*) Underlying operating profit and margin is before amortisation of acquired intangible fixed assets, prior year discontinued operations and share-based payments.

Jon Bednall, Chief Executive Officer, said:

 "In what we believe has been an overall flat market for our products in the first half of the year, the Group continues to make good progress in pursuing its core strategies aimed at growing operating profit margins and cash.  We are pleased to be able to report results which are again ahead of the expectations at admission and in line with current expectations.  The results for the period demonstrate that we continue to deliver operational improvements to enhance earnings and leverage the scale of the business in anticipation of improving market conditions to come.

Into the second half of the year, and beyond, the Board considers that we remain well placed to deliver our operating profit and are positioned to capitalise on future market growth opportunities, whilst continuing to pursue appropriate value enhancing acquisitions as they may arise."  

Enquiries:

Epwin Group Plc                                                              [phone]

Jon Bednall, Chief Executive

Chris Empson, Group Finance Director

Zeus Capital Limited (Nomad and Broker)                                           

Nick Cowles / Andrew Jones / Jamie Peel                    [phone]       

John Goold / Dominic King                                             [phone]

Maitland                                                                            [phone]

Tom Eckersley / Marina Burton

Forthcoming dates:

Ex-dividend date                             24 September 2015

Dividend record date                     25 September 2015

Dividend payment date                      23 October 2015

About Epwin

Epwin is a vertically integrated manufacturer of low maintenance building products, supplying the RMI, new build and social housing sectors.

The Company is incorporated and domiciled in the United Kingdom. It operates principally in the United Kingdom.

www.epwin.co.uk

Group Business Review

During the period the financial performance of the business has been solid, generating an underlying operating profit of £8.0 million (2014: £6.1 million) in a sector that has seen little if any growth, and by certain measures suffered some decline in Q2.

Results

				6 months ended	6 months ended
Key financials				30 June 2015 £'million	30 June 2014 (restated) £'million
Revenue (excluding discontinued and disposed businesses)				124.1	125.2
Underlying operating profit (*)				8.0	6.1
Amortisation of acquired intangible fixed assets				-	(0.9)
Business re-organisation costs				-	(0.4)
Share based payments				(0.2)	-
Operating profit				7.8	4.8
Underlying operating profit margin (*)				6.4%	4.9%
Operating profit margin				6.3%	3.8%

(*) Underlying operating profit and margin is before amortisation of acquired intangible fixed assets, prior year discontinued operations and share-based payments.

Underlying operating profit grew by £1.9 million, driven by good performance in the Extrusion division, reflecting the advantages of a first half year as a listed business, as well as the settling of certain legacy commitments.  The Fabrication and Distribution division saw lower sales than for the same period in 2014 due to a relatively soft and erratic market.   The major part of a significant restructuring programme within the Fabrication and Distribution division has been finalised.  The Board believes that the Group is in good financial shape to execute its core strategies.

Revenues were in line with the same period last year, reflecting what appears to be a collective view that the UK RMI market has yet to show real signs of recovery and may, indeed, have suffered some decline in Q2 around the time of the UK General Election and amidst continuing economic uncertainty. 

Cash flow

				6 months ended	6 months ended
				30 June 2015 £'million	30 June 2014 (restated) £'million
Pre-tax operating cash flow				6.3	2.6
Tax paid				(1.4)	(0.3)
Net capital expenditure				(4.2)	(2.5)
Net interest paid				(0.2)	(0.3)
Drawdown of borrowings				-	0.8
Finance lease repayments				(0.3)	(0.1)
Dividends				(3.8)	-
Discontinued operations				-	(0.1)
Net (decrease) / increase in cash and cash equivalents				(3.6)	0.1
Net debt				2.2	19.4

Pre-tax operating cash inflow was £6.3 million, compared to £2.6 million in 2014. At 30 June 2015 the Group had net debt of £2.2 million (31 December 2014 £1.1 million net cash, 30 June 2014 £19.4 million net debt) reflecting the cyclical nature of investment in working capital during H1, as well as the commencement of significant capital investment related to the Board's decision to accelerate the development and implementation of the new window profile system for Profile 22.

In line with other commentaries, despite oil prices remaining at relatively low levels, polymers and other raw material suppliers have returned to, and in some instances exceeded, prior year price levels due to the impact of supplier capacity constraints and in the case of polymer, downtime in the plants of major European producers.

Although input prices for PVC remained more favourable on average than this period in the prior year, prices at the end of Q2 had reached the higher levels experienced by the Group in 2014.  At the same time, this early softness in input prices, coupled with flat demand, had a detrimental effect when seeking pricing improvements from the market in some areas of the Group's business.

The Board continues to firmly believe that there remains significant pent up demand for its products and that the fundamentals of prolonged underinvestment in housing stock, (the Office of National Statistics estimates that only 40% of UK houses have been adequately maintained), point to good long term opportunities.  The Board believe that a UK economic upturn and eventual meaningful growth in real wages should lead to a prolonged RMI cycle for the Group's current and future low maintenance building products.

Dividend

The Board is pleased to announce an interim dividend of 2.12 pence per ordinary share (2014: 1.41 pence) in line with the dividend policy set out on admission to AIM.  This will be paid on 23 October 2015 to shareholders on the register on 25 September 2015.

Outlook

The Board believes that the Group continues to be well placed to grow its operating profits and cash and to be able to capitalise on future market growth when economic stability eventually feeds through to sustained RMI market growth.  The PVC-U and PVC-UE building products markets have not yet shown signs of sustained improvement and yet the significant pent up RMI demand created by a generally old and under-invested housing stock remains unaddressed.   Whilst not as significant as RMI, the forecast upturn in new build activity will also benefit the Group.

The Group has a strong funding position and the Board continues to believe that there are opportunities for further consolidation in a fragmented market as well as to extend the Group's product offer and technical capabilities.

The launch in early 2016 of a new, market leading window profile system under the Profile 22 brand will provide commercial opportunities.

The Group will continue to seek out opportunities for operational improvements and appropriate acquisitions.  As in prior years, we anticipate that the cyclical nature of the Group's markets will mean the second half of the year will be stronger than the first half year and we remain confident that full year profits will be in line with expectations.

Divisional Business Review

The Group operates in the market through a number of brands, reported through two segments:

·     Extrusion

Manufactures and markets the following products:

•     Complete extruded PVC-U profile systems for fabricators of windows, doors, cavity closers and curtain walling.  The Group is estimated to be one of the two largest manufacturers in the market.

•     Leading brands of PVC-UE extruded roofline and cladding profile systems for the replacement and installation of soffits, barge boards, cladding and trims. The Group is the market leader in cellular extrusion.

•     A growing range of PVC-U rainwater and drainage products.

•     A significant proportion of extruded window profile is converted within the Group, giving a valuable 'base-load' for the window profile extrusion facilities.

•     The Group operates from four extrusion and moulding facilities in Telford, Tamworth, Macclesfield and Scunthorpe.
 

·     Fabrication and Distribution

Fabricates and markets the following products:

•     Ranges of branded windows and doors from the Group's own profile systems.

•     Glass sealed units for sale to the trade, social and new build sectors.

•     Additionally, the Group operates 26 building plastic trade distribution centres and separately 16 Window Stores as direct trade outlets for the Group's manufactured products. 

Segmental Results

	6 months ended	6 months ended
	30 June 2015	30 June 2014
		(restated)
	£'million	£'million
Revenue (excluding discontinued and disposed business)
Extrusion	69.9	67.4
Fabrication & Distribution	54.2	57.8
Total	124.1	125.2
Underlying segmental operating profit
Extrusion	7.2	5.6
Fabrication & Distribution	1.6	2.3
Underlying segmental operating profit before corporate and other costs	8.8	7.9
Corporate and other costs	(0.8)	(1.8)
Underlying operating profit (*)	8.0	6.1
Amortisation of acquired intangible fixed assets	-	(0.9)
Business re-organisation costs	-	(0.4)
Share based payments	(0.2)	-
Operating profit	7.8	4.8

(*) Underlying operating profit and margin is before amortisation of acquired intangible fixed assets, prior year discontinued operations and share-based payments.

Extrusion

·     Operating profit margins improved by 2.0% compared to the same period in 2014, due to initially favourable input prices, rationalisation of the logistics operation and the full period benefit of site integration savings. 

·     Revenue increased 3.7% to £69.9 million, mainly from volume, (2014: £67.4 million) during the period and underlying operating profit increased to £7.2 million (2014: £5.6 million).

·     The Group has finalised the development of a new, market leading window profile system and commenced this significant capital project to purchase new equipment and tooling.  The new system will launch in Q1 2016.  It is anticipated that the new system will assist the commercial development of the business.

·     The rainwater and drainage business continues to perform well and is 5.0% up on prior as the investment made by the Group in this area is coming to fruition.

·     The project to re-locate a warehouse from Telford to a newly constructed facility adjacent to the Tamworth cellular extrusion facility has been substantially completed in Q2.  The project is anticipated to realise annualised synergies of £0.2 million.

Fabrication and Distribution

·     Revenue from continuing operations decreased to £54.2 million (2014: £57.8 million) reflecting the patchy overall market and delays in the commencement of anticipated Housing Association and Local Authority contracts.

·     Operating profit of £1.6 million, compared to £2.3 million for the same period in 2014 is lower due to operational inefficiencies resulting from unpredictable and lower levels of demand than expected, as a result of contract delays, the sluggish RMI market and reorganisation costs.

·     Sales demand was disrupted by the uncertainty generated by the UK General Election which resulted in an erratic demand pattern with consequent impact on operating efficiency.

·     The market was relatively soft in the half year as a whole as the Fenestration Self Assessment Scheme (FENSA) statistics for the 6 months to June indicate, with a fall in certified installations of 10% against H1 2014.  Some of this is likely to be due to the changes in approach to FENSA registration, however, it indicates a degree of softness and volatility in the market.

·     Operationally, whilst the majority of the changes and the legacy issues were rectified in 2014, the programme of rationalisation has continued into 2015.  We believe that this restructuring and rationalisation is now complete, save for the need to further strengthen the management team in certain areas.   The impact of the door factory move was significant, as were some consequent operational issues in H2 2014 and H1 2015.

·     As part of the restructure of operations, new commercial management are now in place and starting to produce results.  The new build order book for H2 is significantly stronger than H1 and additionally the contract win rate has improved markedly.

·     The Glass business has experienced lower demand than anticipated which has reduced the impact from the new Insulated Glass Unit line installed over the Christmas period.  However, the investment made and continuing in this business is delivering improved unit costs which will place the business in a strong position when volumes grow.

Condensed Consolidated Income Statement
for the six months ended 30 June 2015
		6 month ended  30 June 2015	6 months ended  30 June 2014	Year ended 31 December 2014
		(unaudited)	(unaudited & restated, note 5)	(audited)
	Note	£'million	£'million	£'million
Group revenue	2	124.1	125.2	259.5
Cost of sales		(88.3)	(91.4)	(186.7)
Gross profit		35.8	33.8	72.8
Distribution expenses		(11.8)	(11.2)	(23.3)
Administrative expenses		(16.2)	(17.8)	(30.2)
Underlying operating profit	3	8.0	6.1	18.3
Amortisation of acquired intangible assets		-	(0.9)	(1.7)
Business re-organisation costs		-	(0.4)	3.5
Share based payments		(0.2)	-	(0.8)
Operating profit		7.8	4.8	19.3
Net finance costs		(0.2)	(0.4)	(0.7)
Profit before tax		7.6	4.4	18.6
Taxation	4	(1.4)	(0.8)	(3.5)
Profit from continuing operations		6.2	3.6	15.1
Loss from discontinued operations net of tax	5	-	(0.1)	(0.3)
Profit for the period and total comprehensive income		6.2	3.5	14.8
Basic earnings per share		pence	pence	pence
Earnings per share	6	4.59	2.86	11.56
Earnings per share - continuing operations	6	4.59	2.94	11.76
Earnings per share - discontinued operations	6	-	(0.08)	(0.20)
Diluted earnings per share
Earnings per share	6	4.56	2.86	11.55
Earnings per share - continuing operations	6	4.56	2.94	11.75
Earnings per share - discontinued operations	6	-	(0.08)	(0.20)

Condensed Consolidated Balance Sheet as at 30 June 2015
		30 June 2015	30 June 2014	31 December 2014
		(unaudited)	(unaudited)	(audited)
	Note	£'million	£'million	£'million
Assets
Non-current assets
Goodwill		24.5	24.5	24.5
Other intangible assets		0.2	1.1	0.2
Property, plant and equipment		27.6	25.3	26.2
Deferred tax asset		2.9	3.4	2.9
		55.2	54.3	53.8
Current assets
Inventories		23.6	23.3	22.4
Trade and other receivables		43.6	43.9	37.6
Cash and cash equivalents	8	-	0.4	2.3
		67.2	67.6	62.3
Total assets		122.4	121.9	116.1
Liabilities
Current liabilities
Bank overdraft	8	1.3	-	-
Other interest bearing loans and borrowings	8	0.4	3.2	0.4
Trade and other payables		48.5	48.1	45.6
Tax payable		2.0	1.2	2.0
Provisions		0.9	3.2	1.0
		53.1	55.7	49.0
Non-current liabilities
Other interest bearing loans and borrowings	8	0.5	16.6	0.8
Other payables		-	2.7	-
Provisions		3.4	6.8	3.5
		3.9	26.1	4.3
Total liabilities		57.0	81.8	53.3
Net assets		65.4	40.1	62.8
Equity
Ordinary share capital		0.1	-	0.1
Share premium		12.5	-	12.5
Merger reserve		15.6	27.0	15.6
Retained earnings		37.2	13.1	34.6
Total equity		65.4	40.1	62.8

Condensed Consolidated Statement of Changes in Equity
for the six months ended 30 June 2015
		6 months ended  30 June 2015	6 months ended  30 June 2014		Year ended 31 December 2014
		(unaudited)	(unaudited)		(audited)
		£'million	£'million		£'million
Balance at the start of the period		62.8	36.6		36.6
Profit for the period		6.2	3.5		14.8
Issue of shares (Pre IPO)		-	-		2.5
IPO share placing		-	-		10.0
Share-based payments		0.2	-		0.1
Share warrants issued on IPO		-	-		0.7
Dividends	7	(3.8)	-		(1.9)
Balance at the end of the period		65.4	40.1		62.8

	Consolidated Cash Flow Statement
for the six months ended 30 June 2015 6 months ended 30 June 2015 6 months ended 30 June 2014 Year ended 31 December 2014 (unaudited) (unaudited & restated, note 5) (audited)  Note £'million £'million £'million Cash flows from operating activities Profit for the period 6.2 3.5 14.8 Adjustments for: Depreciation and amortisation 2.8 3.5 6.7 Net finance costs 0.2 0.4 0.7 (Profit)/loss on disposal of property, plant and equipment - - (0.1) Taxation 1.4 0.8 3.5 Share-based payments 0.2 - 0.8 Loss from discontinued operations net of tax  4 - 0.1 0.3 10.8 8.3 26.7 (Increase) in inventories (1.2) (1.5) (0.9) (Increase)/decrease in trade and other receivables (6.0) (3.8) 2.4 Increase/(decrease) in trade and other payables 2.9 (0.3) (2.7) (Decrease) in provisions (0.2) (0.1) (5.6) 6.3 2.6 19.9 Tax paid (1.4) (0.3) (1.7) Net cash from operating activities 4.9 2.3 18.2 Cash flows from investing activities Acquisition of property, plant and equipment (4.2) (2.5) (5.7) Receipts from disposal of property, plant and equipment - - 0.1 Net cash from investing activities (4.2) (2.5) (5.6) Cash flows from financing activities Net interest paid (0.2) (0.3) (0.7) Proceeds from issue of share capital - - 10.0 Drawdown of borrowings - 0.8 - Repayment of borrowings - - (17.6) Capital element of finance lease repayments (0.3) (0.1) 0.3 Dividends paid 7 (3.8) - (1.9) Net cash from financing activities (4.3) 0.4 (10.5) Discontinued operations Net cash flow from operating activities - (0.1) (0.1) Net cash flow from discontinued operations - (0.1) (0.1) Net (decrease)/increase in cash and cash equivalents (3.6) 0.1 2.0
Consolidated Cash Flow Statement
for the six months ended 30 June 2015
					6 months ended 30 June 2015			6 months ended 30 June 2014		Year ended 31 December 2014
					(unaudited)			(unaudited)		(audited)
					£'million			£'million		£'million
Net (decrease)/increase in cash and cash equivalents					(3.6)			0.1		2.0
Cash and cash equivalents at the beginning of period					2.3			0.3		0.3
Cash and cash equivalents at end of period					(1.3)			0.4		2.3
Bank Borrowings					-			(18.4)		-
Finance lease liabilities					(0.9)			(1.4)		(1.2)
Net (debt)/cash					(2.2)			(19.4)		1.1

Notes to the Condensed Consolidated Financial Statements

for the six months ended 30 June 2015

1.   Basis of preparation

These financial statements have been prepared on the basis of the accounting policies expected to be adopted for the year ended 31 December 2015.  These are in accordance with the Group's accounting policies as set out in the Group's consolidated financial statements for the year ended 31 December 2014.

The recognition and measurement requirements of all International Financial Reporting Standards ('IFRSs'), International Accounting Standards ('IAS') and interpretations currently endorsed by the International Accounting Standards Board ('IASB') and its committees as adopted by the EU and as required to be adopted by AIM listed companies have been applied.  AIM-listed companies are not required to comply with IAS 34 'Interim Financial Reporting' and accordingly the Company has taken advantage of this exemption.

On the basis of current financial projections and facilities available, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future and, accordingly, consider that it is appropriate to adopt the going concern basis in preparing these Interim Financial Statements.

The financial information in these financial statements does not constitute statutory accounts for the six months ended 30 June 2015 and should be read in conjunction with the Group's consolidated financial statements for the year ended 31 December 2014 which were (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and (iii) did not contain statements under sections 498(2) and (3) Companies Act 2006.

The condensed consolidated financial statements for the six months to 30 June 2015 have not been audited or reviewed by auditors pursuant to the Auditing Practices Board guidance on Review of Interim Financial Information.

The condensed consolidated financial statements were approved by the Board of Directors on 15 September 2015.

2.   Segmental reporting

Segmental information is presented in respect of the Group's business segments in line with IFRS 8 'Operating Segments', which requires segmental information to be disclosed on the same basis as it is viewed internally by the Chief Operating Decision Maker. The Group's Board of Directors, considered as the Chief Operating Decision Makers, view the business as two reportable segments; Extrusion and Fabrication and Distribution, which reflects the way the business operates and the products and services offered.

Reportable segments                    Operations

Extrusion                                             Extrusion and marketing of PVC-U window profile systems, PVC-UE cellular roofline and cladding, rigid rainwater and drainage products.

Fabrication and Distribution     Fabrication and marketing of windows and doors, distribution of cellular roofline, cladding, rainwater and drainage products, and manufacture of glass sealed units.

		6 months ended  30 June 2015	6 months ended  30 June 2014	Year ended  31 December 2014
		(unaudited)	(unaudited & restated)	(audited)
		£'million	£'million	£'million
Revenue from external customers
Extrusion		69.9	67.4	142.9
Fabrication & Distribution		54.2	57.8	116.6
Total		124.1	125.2	259.5
Segmental operating profit
Extrusion		7.2	5.6	16.6
Fabrication & Distribution		1.6	2.3	4.5
Segmental operating profit before corporate and other costs		8.8	7.9	21.1
Corporate and other costs		(0.8)	(1.8)	(2.8)
Underlying operating profit		8.0	6.1	18.3
Amortisation of acquired intangible fixed assets		-	(0.9)	(1.7)
Business re-organisation costs		-	(0.4)	3.5
Share based payments		(0.2)	-	(0.8)
Group operating profit		7.8	4.8	19.3
Net finance costs		(0.2)	(0.4)	(0.7)
Profit before tax		7.6	4.4	18.6

3.   Underlying operating profit

'Underlying operating profit' is the key profit measure used by the Board to assess the underlying financial performance of the operating divisions and the Group as a whole. 'Underlying operating profit' is stated before amortisation or impairment of acquired intangible assets, business reorganisation costs and share based payments.

4.   Taxation

The tax charge for the six months to 30 June 2015 is based on the estimated tax rate for continuing operations for the full year.

In his Budget of 20 March 2014 the Chancellor of the Exchequer announced certain changes which have an effect on the company's future tax position. The proposals included phased reductions in the corporation tax rate to 20% from 1 April 2015. The enactment of the 2013 Finance Bill confirmed a reduction to the corporation tax rate to 23% from 1 April 2014.  In July 2014, the 2014 Finance Bill was enacted which confirmed reductions to 21% from 1 April 2014 and 20% from 1 April 2015.  In the Summer Budget of 8 July 2015, the Chancellor of the Exchequer announced additional changes which will have an effect on the company's future tax position.  These proposals include phased reductions in the corporation tax rate to 19% from 1 April 2017, and then down to 18% from 1 April 2020.

At the balance sheet date, all of the enacted rate changes have been reflected in the deferred tax that has been provided for. The proposed rate changes within the 8 July 2015 Summer Budget, when enacted, will also impact the amount of future cash tax payments to be made by the company.  The effect on the Company of these proposed changes to the UK tax system will be reflected in the Company's financial statements in future years as appropriate.

5.   Discontinued operations

Portsmouth

On 29 August 2014 the Group disposed of the trade and assets of a bespoke, glass distributor based in Portsmouth.  A loss of £0.2 million arose on disposal.  The consolidated income statement and cash flow statement for the 6 month period to 30 June 2014 have been restated to show the discontinued operation separately from continuing operations.

		6 months ended 30 June 2015	6 months ended 30 June 2014	Year ended 31 December 2014
		(unaudited)	(unaudited)	(audited)
		£'million	£'million	£'million
Revenue		-	1.8	2.4
Cost of sales		-	(1.5)	(2.0)
Operating expenses		-	(0.4)	(0.7)
Loss before tax		-	(0.1)	(0.3)
Taxation		-	-	-
Loss after tax from discontinued operations		-	(0.1)	(0.3)

6.   Earnings per share (EPS)

	6 months ended 30 June 2015	6 months ended 30 June 2014	Year ended 31 December 2014
	(unaudited)	(unaudited & restated, see note 5)	(audited)
	£'million	£'million	£'million
Profit for the period, being basic earnings attributable to ordinary equity shareholders	6.2	3.5	14.8

	pence		pence				pence
Basic EPS
Basic earnings per share		4.59		2.86				11.56
Basic earnings per share - continuing operations		4.59		2.94				11.76
Basic earnings per share- discontinued operations	-		(0.08)				(0.20)

	pence		pence				pence
Diluted EPS
Diluted earnings per share		4.56		2.86				11.55
Diluted earnings per share - continuing operations		4.56		2.94				11.75
Diluted earnings per share- discontinued operations	-		(0.08)				(0.20)

Number of shares		No.	No.	No.
Weighted average number of shares used to calculate earnings per share
-       Basic		135,000,000	122,362,788	128,046,892
-       Diluted		135,945,811	122,362,788	128,115,175

The EPS for the period to 30 June 2014 has been retrospectively adjusted to reflect to conversion to share capital that was implemented in July 2014 prior to the IPO.

7.   Dividends

	6 months ended 30 June 2015	6 months ended 30 June 2014	Year ended 31 December 2014
	£'million	£'million	£'million
2014 final dividend of 2.83 pence per share	3.8	-	-
2014 interim dividend of 1.41 pence per share	-	-	1.9
	3.8	-	1.9

The Group will pay an interim dividend of 2.12 pence per Ordinary Share in respect of the six months to 30 June 2015 (30 June 2014: 1.41 pence) on 23 October 2015 to shareholders on the register on 25 September 2015.

8.   Net debt

		6 months ended 30 June 2015	6 months ended 30 June 2014	Year ended 31 December 2014
		(unaudited)	(unaudited)	(audited)
		£'million	£'million	£'million
Cash and cash equivalents		(1.3)	0.4	2.3
Bank Borrowings		-	(18.4)	-
Finance lease liabilities		(0.9)	(1.4)	(1.2)
Net debt		(2.2)	(19.4)	1.1

The facilities available to the Group at 30 June 2015 were a £25 million Revolving Credit Facility and £5 million overdraft, secured on the assets of the Group.  The term of the revolving credit facility is for five years ending July 2019.

9.   Cautionary statement

This document contains certain forward-looking statements with respect of the financial condition, results, operations and businesses of Epwin Group Plc. Whilst these statements are made in good faith based on information available at the time of approval, these statements and forecasts inherently involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause the actual result or developments to differ materially from those expressed or implied by these forward looking statements and forecasts. Nothing in this document should be construed as a profit forecast.

10.  Copies of this half year report

Further copies of this half year report are available from the registered office: Epwin Group Plc, 1b Stratford Court, Cranmore Boulevard, Solihull, B90 4QT or on the Company's website www.epwin.co.uk

11.  Adoption of FRS 101

With effect from financial periods beginning on or after 1 January 2015 all UK companies will be required to transition to 'new' UK GAAP and prepare their financial statements, including comparative periods, under either FRS 101 or FRS 102. Having reviewed the options available the Board has decided to adopt FRS 101 in the preparation of the standalone Epwin Group Plc financial statements for the year ended 31 December 2015. As a business listed on AIM, the Group consolidated financial statement will continue to be prepared under IFRS as adopted by the EU.

A shareholder or shareholders holding in aggregate 5% or more of the total allotted shares in Epwin Group Plc may send objections to the use of the disclosure exemptions in Epwin Group Plc, in writing, to its registered office (1B Stratford Court, Cranmore Boulevard, Solihull, B90 4QT) no later than 31 October 2015.

 

END

 

 

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