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Epwin Group PLC (EPWN)

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Wednesday 06 September, 2017

Epwin Group PLC

Customer Update

RNS Number : 9088P
Epwin Group PLC
06 September 2017
 

6 September 2017

 

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.  Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

 

Epwin Group Plc

("Epwin" or the "Group")

 

Customer Update

 

Epwin Group Plc, the low maintenance building products manufacturer, supplying businesses in the Repair, Maintenance and Improvement ("RMI"), new build and social housing sectors, announces the following update regarding the changing circumstances within its customer base.   

 

In the trading update on 16 August 2017 Epwin announced that one of the Group's customers, accounting for around 5% of the Group's revenue, was facing significant funding issues and undertaking a strategic review.  At that time the implications of this were unclear.

 

On 31 August 2017 the parent company of the customer in question, Entu (UK) plc ("Entu") appointed administrators who sold the trade and assets of this customer to a new entity which has indicated their intention to maintain continuity of trading and to invest in the business. Epwin is currently supplying product on a cash basis to this entity and discussions on any future trading relationship are ongoing.

 

At the time the administrators were appointed to Entu a debtor balance, net of VAT, of c£3.9 million was outstanding from this customer.  The level of recoverability of this debtor is not able to be determined at this stage pending discussions with the administrators.

 

Whilst it is obviously disappointing to report this, these amounts are well within the Group's financial capacity and are non-recurring.  As stated on 16 August 2017, the Group's financial position remains strong with net debt at the half year less than one times 2016 EBITDA and with significant funding headroom to continue to invest in the business.   

 

The Group will update shareholders on these matters in due course, as appropriate.

 

 

Contact information

 

Epwin Group Plc

Jon Bednall, Chief Executive

Chris Empson, Group Finance Director

 

0203 128 8100

Zeus Capital Limited (Nomad and Joint Broker)

Nick Cowles /  Jamie Peel

John Goold / Dominic King

 

Panmure Gordon (UK) Limited (Joint Broker)

Erik Anderson / Andrew Potts

 

0161 831 1512

0203 829 5000

 

 

0207 886 2500

 

MHP Communications

Reg Hoare / Charlie Barker

 

 

0203 128 8100

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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