Stellar shines as Epwin reports
‘in line’ trading update
Epwin Group says it expects adjusted profit for the half and full year to be in line with market expectations, according to its half-year trading update.
New products, including the group’s Stellar aluminium window system are showing positive feedback, says the group, and the programme of site consolidation and efficiency improvements is progressing to plan.
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 statement continues: “The Group's financial position remains strong, with good cash generation and net debt at the half year of £29.2m, on a consistent pre IFRS 16 basis (H1 2018: £28.6m), 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 £65 million revolving credit facility plus a £10 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.”
CEO Jon Bednall said: "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."
The Group will announce its half year results on Wednesday 11 September 2019.