Last checked at 28 Jul 2021 07:00
28 July 2021
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Epwin Group Plc
Half-year trading update and notice of results
Strong trading continues, ahead of previous expectations
Epwin Group Plc (AIM: EPWN) ("Epwin" or the "Group"), the leading manufacturer of 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 2021.
Trading update
Trading has continued to be strong since the Company's last update on 25 May 2021. Revenues for the first half of the year are £157.8m, 69% ahead of 2020 (which included the first lockdown period) and 13% ahead of 2019, predominantly driven by demand from the RMI market.
As has been widely reported, supply chains remain under pressure from both high market demand and shortages from global events and supplier issues, which have continued throughout 2021. Consequently, raw material prices have continued to increase. As previously reported the Group is taking steps to mitigate these equitably through price increases, surcharges and other measures, albeit this process naturally lags the increase in input prices.
The Group continues to retain a strong balance sheet to support strategic investment. Covenant net debt at 30 June 2021 was £15.9 million which is 0.6x adjusted EBITDA (31 December 2020: £18.5m), providing the Group with approximately £60 million of headroom on its facilities.
Outlook
The outlook for the current year continues to be favourable as the Group's strong trading continues, notwithstanding the raw material cost inflation and supply chain issues, which we are managing proactively alongside the ongoing disruption caused by the COVID-19 pandemic.
Assuming that the Group does not experience material supply chain or COVID-19 related impacts in H2, the Board now expects adjusted profit before tax for the full year to be materially ahead of its previous expectations.
Notice of results
The Group expects to announce its full year results for the half-year ended 30 June 2021 on 15 September 2021.
Jon Bednall, Chief Executive Officer, said:
"I am pleased to report that trading in the year to date has continued to be strong and we now expect full year PBT to be ahead of our previous expectations.
This is underpinned by ongoing high demand in our key RMI markets and proactive management of raw material cost inflation and supply chain issues. 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 Edward Mansfield / Daniel Bush
Corporate Broking Fiona Conroy
Zeus Capital Limited (Joint Broker) John Goold / Dominic King
| 0207 408 4090
0203 829 5000
|
MHP Communications Reg Hoare / Charlie Barker / Florence Mayo | 0203 128 8540 |
About Epwin
Epwin is the leading manufacturer of 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/