TIDMEPWN

RNS Number : 1283N

Epwin Group PLC

28 January 2021

28 January 2021

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")

Year-end trading update

and

acquisition

Epwin Group Plc (AIM: EPWN) ("Epwin" or the "Group"), the leading manufacturer of low maintenance building products, supplying the Repair, Maintenance and Improvement ("RMI"), new build and social housing sectors, announces its year-end trading update in respect of the year ended 31 December 2020 ("FY 2020").

Trading update

Further to the announcement on 16 December 2020, the Group is pleased to report that trading remained strong through to the end of the year, particularly from the RMI sector, with new build and social housing orders also picking up. As a result, revenues for FY 2020 will be around GBP240m with adjusted profit before tax also in line with recently upgraded market consensus, subject to audit.

Net debt as at 31 December 2020 (on a pre-IFRS 16 basis) was c. GBP18m.

Trading since the start of 2021 has recommenced briskly with no significant Brexit or third lockdown related impact to date. The Board will provide a further update on current trading at the full year results announcement.

The Board continues to be mindful of the importance of dividends to shareholders and anticipates recommending the payment of a final dividend for the year ending 31 December 2020.

Delivering on our strategy

As previously announced, construction of the Group's new logistics and product finishing facility in Telford was completed on time and on budget in 2020 and the facility commenced operations at the end of the year. Full commissioning of this facility was delayed as a result of the impact of the Pandemic. This will further enhance Group operations during 2021 with the benefits expected to be delivered from the second half.

The Group now has enhanced supply arrangements in place. This has enabled it to largely overcome the raw materials shortages faced by the industry as market demand spiked in H2 2020, particularly for the supply of PVC resin.

Acquisition

In line with the Group's strategic objectives, on 5 January 2021, the Group acquired the trade and related assets of SBS (Cumbria) Limited ("SBS"), a leading and well-established distributor of plastic building products operating across eight branches in Cumbria and Southern Scotland.

SBS was acquired for GBP3.8m on a cash and debt free basis. In the year to February 2020, SBS revenues were around GBP6m. Including synergistic benefits we anticipate an EBITDA multiple of four times, with the full benefits of the acquisition being realised from the end of 2021. This acquisition further increases the geographical coverage of the Group's plastic distribution business, offers the opportunity for synergies and wider expansion over time alongside the Group's key partnerships with independent distributors.

Jon Bednall, Chief Executive Officer, said:

" I am pleased with the Group's overall performance for 2020, as we adapted successfully to the challenges presented by Covid-19. I am also delighted with the progress we have made on our strategic priorities through the acquisition of SBS and the completion of the construction of the Telford logistics facility and finishing plant.

"We have had a brisk start to the current financial year, with the medium and long-term drivers of our markets remaining strong."

Contact information

 
 
   Epwin Group Plc 
   Jon Bednall, Chief Executive 
   Chris Empson, Group Finance Director                0203 128 8168 
 Shore Capital (Nominated Adviser and Joint 
  Broker) 
  Corporate Advisory                                   0207 408 4090 
  Edward Mansfield / Daniel Bush / Hugo Masefield 
 
  Corporate Broking 
  Fiona Conroy 
 
  Zeus Capital Limited (Joint Broker) 
  John Gould / Dominic King                            0203 829 5000 
 MHP Communications                                    0203 128 8168 
  Reg Hoare / Charlie Barker / Florence Mayo          Epwin@mhpc.com 
  / Pandora Yadgaroff

About Epwin

Epwin is the leading manufacturer of low maintenance building products with significant market shares, supplying the Repair, Maintenance and Improvement ("RMI"), new build and social housing sectors.

The Company is incorporated, domiciled and operates principally in the United Kingdom.

www.epwin.co.uk

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

TSTFLFFALIIDFIL

(END) Dow Jones Newswires

January 28, 2021 02:00 ET (07:00 GMT)

Epwin (LSE:EPWN)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024 Haga Click aquí para más Gráficas Epwin.
Epwin (LSE:EPWN)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024 Haga Click aquí para más Gráficas Epwin.