Last checked at 20 Jan 2022 07:00
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.
20 January 2022
Epwin Group Plc
("Epwin" or the "Group")
Year-end trading update and notice of results
Strong performance in FY 2021, confident outlook
Epwin Group Plc (AIM: EPWN) ("Epwin", "the Company" 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 year-end trading update in respect of the year ended 31 December 2021 ("FY 2021").
Trading update
The Group is pleased to report that trading remained strong through to the end of the year, with revenues for FY 2021 expected to be approximately £330m, up by 37% compared to 2020 and 17% compared to 2019. This has been driven by a combination of the ongoing strength of demand in the RMI market, price increases and recent bolt-on acquisitions.
The Group has continued to successfully navigate its way through the sector-wide operational, inflationary and supply chain pressures caused by the ongoing impact of Covid-19 and heightened demand levels. Accordingly, the Group now expects to report adjusted profit before tax for FY 2021 modestly ahead of current expectations1, subject to audit.
Cash generation remained strong in the second half of the year, with covenant net debt (pre-IFRS 16) as at 31 December 2021 significantly reduced to approximately £9m (2020: £18.5m; 2019: £16.4m), better than the Board's expectations. This was achieved despite the Group completing several bolt-on acquisitions during the year, totalling £5.3m, including one acquisition in the second half of the year. Year-end leverage was less than 0.5 x adjusted EBITDA.
Current trading
Trading in the first two weeks of 2022 has remained strong and has been in line with the Board's expectations. The Board continues to monitor the development of the Covid-19 pandemic whilst managing the impact of absences across the workforce during the early part of 2022.
Notice of results
The Group will announce its full year results for the year ended 31 December 2021 on Wednesday 6 April 2022.
Jon Bednall, Chief Executive Officer, said:
"I am pleased to report that our trading performance in the second half and for the year as a whole was strong, despite the well-reported supply chain and inflationary pressures. This is testament to the hard work of our people in a year which has seen many challenges for businesses and individuals.
We are optimistic for the Group's trading prospects in 2022 and remain confident in the strength of the medium and long-term drivers of our markets."
Contact information
Epwin Group Plc Jon Bednall, Chief Executive Chris Empson, Group Finance Director
|
0203 128 8540 |
Shore Capital (Nominated Adviser and Joint Broker) Corporate Advisory Daniel Bush / Iain Sexton
Corporate Broking Fiona Conroy
Zeus Capital Limited (Joint Broker) John Gould / Dominic King
| 0207 408 4090
0203 829 5000
|
MHP Communications Reg Hoare / Charlie Barker / Florence Mayo / Pauline Guenot | 0203 128 8540 Epwin@mhpc.com |
(1) Based on Company compiled consensus, the Board believes the average analyst forecast for 2021 adjusted profit before tax to be £12.8m.
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