Epwin Group Plc (LON:EPWN), the low maintenance building products manufacturer, supplying businesses in the Repair, Maintenance and Improvement (“RMI”), new build and social housing sectors, announced today its trading update in respect of the year ended 31 December 2017 and notice of its full year results.
The Group’s operating profits, before non-underlying items, for the year ended 31 December 2017 are expected to be in line with market expectations. Net debt at the year-end is also expected to be in line with market expectations, with leverage at less than 1x underlying EBITDA.
The Group’s performance has been resilient, despite the previously reported issues affecting the Group’s two largest customers and the input cost inflation experienced during the year. The Group has continued to deliver on its strategy, particularly noting the strong sales of the Profile 22 Optima window profile system and WPC decking products.
Our programme of operational improvement continues, having completed the consolidation of our glass production facilities onto one site and the phased consolidation of two further production units onto one site is progressing well. In addition, we continue to develop our logistics capabilities at the Scunthorpe site with new warehousing.
We expect market conditions to remain challenging in the near term and anticipate that the RMI market will continue to be subdued in 2018. Despite this, we expect to make further progress with our strategy focussed on operational improvement, broadening the product portfolio, selective acquisitions, cross selling and market share growth in key sectors to build a platform for future growth.
Notice of results
The Group will announce its full year results for the year ended 31 December 2017 on 11 April 2018.
Jon Bednall, CEO of Epwin Group Plc, commented: “Epwin delivered a resilient performance in 2017, despite the issues affecting the Group’s two largest customers and the significant increases in input costs. In the second half of the year we progressed with our strategy of broadening our product portfolio and channels to market, as well as continuing our programme of operational efficiency improvements through further site consolidation. We remain confident in the long term drivers in the RMI market and continuing our record of strong cash generation.”