Epwin Group Plc (LON:EPWN) the vertically integrated manufacturer of low maintenance building products, supplying the Repair, Maintenance and Improvement (“RMI”), new build and social housing sectors, has today announced its half year results for the six months to 30 June 2015, which are delivering the expected improvements in underlying earnings and cash flow.
Highlights for the period include:
· Underlying operating profit* increased by 31.1% to £8.0 million and underlying operating profit margin* to 6.4% from 4.9% for the same period in 2014.
· Earnings per share of 4.59 pence, an increase from 2.86 pence in the same period in 2014.
· Interim dividend of 2.12 pence per ordinary share (2014: 1.41 pence).
· Operating cash inflow up £2.6 million to £4.9 million.
· Revenue from continuing operations broadly in line with H1 2014 at £124.1 million.
· Investment in property, plant and equipment as the Group prepares to launch a new, market leading window profile system in early 2016.
· Efficiencies and cost savings continue to improve profits despite flat markets in H1.
· Despite challenging market conditions, full year profits anticipated to be in line with expectations for the year ending 31 December 2015.
(*) Underlying operating profit and margin is before amortisation of acquired intangible fixed assets, prior year discontinued operations and share-based payments.
Jon Bednall, Chief Executive Officer for Epwin Group Plc, said: “In what we believe has been an overall flat market for our products in the first half of the year, the Group continues to make good progress in pursuing its core strategies aimed at growing operating profit margins and cash. We are pleased to be able to report results which are again ahead of the expectations at admission and in line with current expectations. The results for the period demonstrate that we continue to deliver operational improvements to enhance earnings and leverage the scale of the business in anticipation of improving market conditions to come.
Into the second half of the year, and beyond, the Board considers that we remain well placed to deliver our operating profit and are positioned to capitalise on future market growth opportunities, whilst continuing to pursue appropriate value enhancing acquisitions as they may arise.”