Epwin Group PLC Half Year Trading Update and Notice of Results (0973O)
August 16 2017 - 1:00AM
UK Regulatory
TIDMEPWN
RNS Number : 0973O
Epwin Group PLC
16 August 2017
16 August 2017
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, the low maintenance building products
manufacturer, 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
Revenues and operating profits in the first half year were in
line with the Board's expectations despite market conditions,
particularly in the key RMI market, remaining challenging. As
reported in the AGM Statement in May, materials price inflation has
also had an increasingly significant impact upon costs in the
period and this continues to be the case.
In response to the on-going market conditions, since the half
year the Group has commenced a programme aimed at adjusting its
capacity and cost base.
Additionally, since the AGM the Group has noted changing
circumstances within its customer base affecting two of its
customers, each accounting for around 5% of the Group's revenue.
One has significant funding issues and is undertaking a strategic
review, whilst the other has sold its plastic distribution business
which is principally supplied by Epwin, to a competitor of the
Group. The implications, if any, of these matters remain unclear at
this stage.
Aside from these two specific issues, the Board's current view
is that the outturn for the full year ending 31 December 2017 will
be marginally below market expectations. The Group's financial
position remains strong with net debt at the half year less than
one times 2016 EBITDA and with significant funding headroom to
continue to invest in the business.
Jon Bednall, Chief Executive, commented:
"Whilst the current market conditions continue to be
challenging, we remain confident of the long term growth drivers in
the RMI market and continue to progress with our strategy, focused
on operational improvement, selective acquisitions to broaden our
product portfolio, cross--selling across our brands and product
development. We are confident in continuing our record of strong
cash generation and our ability to offer an attractive dividend to
shareholders."
Notice of results
The Group will announce its half year results for the six months
ended 30 June 2017 on Wednesday 13 September 2017.
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
Dominic King / John Goold 0203 829 5000
Panmure Gordon (UK) Limited
(Joint Broker)
Erik Anderson / Andrew
Potts 0207 886 2500
MHP Communications
Reg Hoare / Charlie Barker 0203 128 8540
This information is provided by RNS
The company news service from the London Stock Exchange
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