Half-year trading update and notice of results

RNS Number : 9906T

Epwin Group PLC

28 July 2022

 

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.

28 July 2022

Epwin Group Plc

("Epwin" or the "Group")

Half-year trading update and notice of results

Good half year trading performance, confident of achieving expectations

Epwin Group Plc (AIM: EPWN) ("Epwin" 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 half-year trading update in respect of the year ended 31 December 2022.

Trading update

Trading conditions remained robust during the first half of 2022 with the Group performing well with revenues 13% ahead of a strong 2021 comparative period at £178.0 million, predominantly driven by pricing to recover input costs. 

Raw material costs continued to increase in the first half, with PVC resin hitting an all-time high in April, although this has subsequently plateaued.  Despite disruption to the supply chains in the wider market, the Group has been able to secure sufficient raw materials to meet demand and expects to be able to continue to do so. The Group continues to work with its customers to pass-on heightened costs in an equitable manner through price increases and surcharges.

The Group retains a strong balance sheet to support its strategic objectives, including value enhancing acquisitions.  Covenant net debt at 30 June 2022 has reduced to £7.3 million (31 December 2021: £9.4m) which is 0.3x adjusted EBITDA, providing the Group with in excess of £65 million of headroom on its facilities.

Outlook

Whilst trading conditions have moderated slightly in June and July, and although also mindful of the wider macro-economic conditions, the Board remains confident of achieving expectations in 2022.

Notice of results

The Group expects to announce its results for the half-year ended 30 June 2022 on 14 September 2022.

Jon Bednall, Chief Executive Officer, said:

"I am pleased to report a good trading performance in the first half. We remain confident of achieving our expectations in 2022, underpinned by ongoing proactive management of the raw material cost. Looking further ahead, the medium and long-term drivers for the Group's products remain positive."

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]

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/

 

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