25 January 2024
Epwin
Group Plc
("Epwin",
the "Company" or the "Group")
Year-end trading update and
notice of results
FY 2023 underlying operating
profit expected to be towards upper end of market
expectations
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 its year-end trading update in
respect of the year to 31 December 2023 ("FY 2023").
Strong trading performance in FY 2023
Further to the trading update
announced on 27 November 2023, trading
remained resilient through to the end of the year, with FY 2023
revenues in line with market expectations1.
The Group has continued to
effectively manage the well-publicised issues of labour, energy and
other inflationary cost pressures with margins recovering to
pre-pandemic levels. Raw material cost inflation has continued to
ease, although PVC resin prices remain at elevated levels.
As a result, subject to audit, the Group now
expects to report underlying operating profit for FY 2023 towards
the upper end of the range of current market
expectations1, which represents a significant increase
over FY 2022.
The Group has continued to make good
progress with its strategy, including continued operational
improvement, new product development, integrating recent
value-enhancing acquisitions and sustainability
initiatives.
Strong cash generation driving
better than expected year-end net debt
Cash generation has remained strong
and the Group expects to report covenant net debt (pre-IFRS 16)
better than current market expectations1 at 31 December
2023 of c. £14.5 million (2022: £17.9 million). This
represents a year-end leverage of less than 0.5x adjusted
EBITDA.
Confident outlook for FY
2024
These results indicate that the
current drivers for the Group's range of low maintenance, energy
efficient and recyclable building products are resilient and
trading in the first weeks of 2024 has been
in line with the Board's expectations.
The Board remains confident of executing the Group's strategy and in the
strength of the medium and long-term drivers of its markets,
despite the short‐term macro-economic outlook.
Notice of results
The Group will announce its full
year results for the year to 31 December 2023 on Wednesday 10 April
2024.
Jon Bednall, Chief Executive
Officer, said:
"The Group
has, once again, delivered financial performance at or ahead of
market expectations, with FY 2023 results significantly ahead of a
strong 2022 comparative. This is testament to the combined
efforts of all my Epwin colleagues and I would like to thank them
for this and for the good progress we have continued to make with
both our strategic and sustainability targets.
We remain confident in the Group's
future prospects, despite the short‐term macroeconomic headwinds
and expect to make further progress this year."
(1) Based on Company compiled
consensus, the Board believes the average analyst forecast for 2023
revenues to be £349.8m, underlying operating profit to
be £23.9 million (within a range of underlying operating
profit expectations of £22.0m to £25.0m) and covenant net debt
(pre-IRS16) to be £17.9 million.
Ends.
Contact information
Epwin Group Plc
Jon Bednall, Chief
Executive
Chris Empson, Group Finance
Director
|
078 3462
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
Reg Hoare / Charlie Barker / Finn
Taylor
|
078 3462
3818
epwin@mhpc.com
|
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/