Trading Update and Share Buyback

Epwin Group PLC

27 November 2023

 

27 November 2023

Epwin Group Plc

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

Trading Update and Commencement of Share Buyback Programme

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 a trading update for the second half of its current financial year (FY 2023) to date and that it intends to commence a share buyback programme (the "Programme") of up to 3 million ordinary shares of 0.05 pence each ("Ordinary Shares") from the date of this announcement.

On track to meet FY 2023 expectations; continued strategic progress

Trading in the second half has been resilient, despite the more variable end-market conditions widely reported across the UK construction sector in September and October 2023. The Board remains confident of achieving FY 2023 underlying operating profit ahead of the prior year and in line with market expectations (company compiled analyst consensus of £24.0m).

The Group has made good further progress with its strategy, including continued operational improvement, new product development, integrating recent value-enhancing acquisitions and sustainability. The medium and long-term drivers for the Group's products remain positive.

Commencement of share buyback programme

The Board considers that the Group's strong balance sheet and cash generation provides the opportunity to take advantage of current market conditions to repurchase shares at attractive levels. The Board takes a disciplined approach to investment, returns and the capital efficiency of the Group, in order to maximise shareholder value.  The Group intends to return capital to shareholders both by way of the Company's on-going dividend policy and the buyback programme, alongside the Group's continued investment in its strategy.

In order to implement the Programme, the Company has entered into an agreement with Shore Capital for it to carry out on-market purchases independent of the Company on an irrevocable and non-discretionary basis. The Programme will be conducted within certain pre-set parameters and at all times in accordance with the authority granted by shareholders to repurchase the Company's Ordinary Shares at the annual general meeting held on 23 May 2023.

The Programme will commence today, 27 November 2023, and it is currently envisaged that it will end no later than 30 April 2024 unless the Company and Shore Capital agree otherwise (in which event an announcement would be made). The Programme is intended to reduce the share capital of the Company and as such repurchased Ordinary Shares will be cancelled. The Programme will not impact the Company's existing dividend policy.

Shareholders should be aware that the Programme will, insofar as is possible, be conducted in accordance with the safe harbour parameters of MAR (as defined below); however, the Programme may on any given trading day represent a significant proportion of the daily trading volume in the Ordinary Shares on the London Stock Exchange and could exceed 25 per cent of the average daily trading volume. Accordingly, the Company may not benefit from the exemption contained in Article 5(1) in the UK version of the Market Abuse Regulations (Regulation (EU) No 596/2014) as incorporated into UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"). The Programme will not prevent the Company from making additional purchases of Shares in accordance with the Company's general authority to repurchase shares where it considers appropriate to do so.

Any market purchase of Ordinary Shares pursuant to the Programme will be announced no later than 7.30am on the business day following the day on which the purchase occurred.

This announcement contains inside information for the purposes of Article 7 of the UK version of the Market Abuse Regulation (EU) No.596/2014, which forms part of UK law by virtue of the European Union (Withdrawal) Act 2018. The Company confirms that it currently has no other unpublished price sensitive information.

Contact information

Epwin Group Plc Jon Bednall, Chief Executive Chris Empson, Group Finance Director	078 3262 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 Communications Reg Hoare / Charlie Barker / Thomas Simpson	078 3262 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/

 

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