Epwin Group PLC Half Year Trading Update and Notice of Results (3238I)
08 August 2019 - 4:01PM
UK Regulatory
TIDMEPWN
RNS Number : 3238I
Epwin Group PLC
08 August 2019
8 August 2019
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")
Half Year Trading Update and Notice of Results
Epwin Group Plc, a leading manufacturer of low maintenance
building products, supplying businesses in the Repair, Maintenance
and Improvement ("RMI"), new build and social housing sectors,
announces its half year trading update and notice of its half year
results announcement.
Trading update
The Board anticipates adjusted profit before tax for both H1 and
the full year to be in line with market expectations. Revenues in
the first half year were GBP140.0m (H1 2018 restated(1) :
GBP140.5m), in line with the Board's expectations, while like for
like revenues(2) were marginally ahead of H1 2018.
The programme of site consolidation and efficiency improvements
is progressing to plan. We will provide a comprehensive update at
the half year results, however, a key recent development has been
the completion of a property purchase, arms length sale, lease and
development agreements entered into in relation to the Group's
Telford site, which are together expected to generate net
additional cash in the order of GBP8 million for the Group during
the current financial year.
The Group's new PVC decking product has been successfully rolled
out and the launch of the new aluminium window system, Stellar, has
also progressed in line with the project plan, with very
encouraging initial customer feedback and a strong pipeline of
potential new customers.
The Group's key markets remain weak, with the key RMI market
widely reported to have contracted in the first half of 2019 and
the overall UK macro-economic backdrop continuing to be uncertain,
with low consumer confidence and low real wage growth. However, the
medium-term market prospects remain positive, driven by ongoing
under-investment in RMI, demand for new build homes and social
housing refurbishment.
The Group's financial position remains strong, with good cash
generation and net debt at the half year of GBP29.2m, on a
consistent pre IFRS 16 basis (H1 2018: GBP28.6m), representing
approximately 1x adjusted EBITDA. In June, the Group put in place
new banking facilities, for three years to June 2022 with the
option of extending for a further two years. These new facilities
comprise a GBP65 million revolving credit facility plus a GBP10
million overdraft facility and are on more favourable terms than
the previous facility. This gives the Group significant funding
headroom to continue to invest in the business and progress with
its strategy.
(1) restated for the 2018 discontinued glass sealed unit
operations
(2) like for like revenue is adjusted to account for the impact
of one-off site closures in 2018 and acquisitions
Notice of results
The Group will announce its half year results for the six months
ended 30 June 2019 on Wednesday 11 September 2019.
Jon Bednall, CEO of Epwin, commented:
"In a challenging market the Group delivered a pleasing
performance in the first half of 2019, in line with market
expectations. Trading has been robust and we have made significant
strategic progress with new product launches, the continued
reshaping of the Group's footprint and the acquisition of PVS.
Current trading is line with the Board's expectations, and while
we remain cautious about macro-economic conditions, we expect to
make further strategic progress in the remainder of the year and
are confident about the group's longer-term prospects."
Contact information
Epwin Group Plc
Jon Bednall, Chief Executive
Chris Empson, Group Finance Director 020 3128 8100
Zeus Capital Limited (Nomad and
Joint Broker)
Nick Cowles / Jamie Peel 0161 831 1512
John Goold / Dominic King 0203 829 5000
Panmure Gordon (UK) Limited (Joint
Broker)
Erik Anderson / Dominic Morley 0207 886 2500
MHP Communications
Reg Hoare / Charlie Barker /
Florence Mayo 0203 128 8100
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END
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