EPWN Epwin Group Plc

21 May 2024

Epwin Group Plc

AGM trading update

Trading in line; confident of delivering expectations

Epwin Group Plc (AIM: EPWN) ("Epwin" or the "Group"), the leading manufacturer of energy efficient and low maintenance building products, with significant market shares, supplying the Repair, Maintenance and Improvement ("RMI"), new build and social housing sectors announces that the Company's Chairman, Andrew Eastgate, will make the following statement in respect of current trading at today's Annual General Meeting:

"Current trading remains in line with the Board's expectations and the Group remains confident of delivering underlying operating profit for the year in line with recently increased market consensus expectations ¹, as well as making further strategic and operational progress.

"The Group continues to carefully manage the balance between volume and margin, with revenues to date behind a strong prior year, as expected. This has been driven by the impact of lower PVC input prices on levied surcharges and macroeconomic headwinds which, as widely reported across the sector, continue to affect demand from housing construction and the RMI markets. 

"The Group's broad product range, diverse customer base and operations, longstanding supplier relationships and strong balance sheet continue to provide a large measure of resilience against any short-term changes in market conditions.

"The medium to long-term drivers of Epwin's end markets remain positive, with the UK still facing a shortage of new and affordable housing, an ageing and underinvested housing stock and increasing concern about the quality of social housing. Environmental concerns are driving legislation and initiatives that will require improvements to homes on a larger scale than simply essential maintenance, with the need to decarbonise the UK housing stock and improve the energy efficiency of homes growing in urgency given the UK's net zero commitments.

"The Board looks forward to updating shareholders further in our half year trading update in the summer.

"The Board continues to return capital to shareholders both by way of our ongoing dividend policy and the buyback programme, alongside on-going investment in the Group's strategy.  The initial programme to purchase 3 million ordinary shares completed on 10 April 2024 at a total cost of £2.3 million, and the programme was extended by a further 3 million ordinary shares on that date.  The Board will continue to monitor the progress of the buyback programme and, whilst there is no guarantee that the extended programme will be completed in full, it is currently envisaged that it will end no later than 30 September 2024. To date 0.8 million shares have been purchased since the extension at an aggregate cost of £0.7 million.  The continuation of the programme is subject to shareholder approval at today's AGM.

"Finally, on my retirement as Chairman after nearly ten years on the Board since the Group's IPO, I would like to take this opportunity to wish my successor, the Board and the Group continued success in the future."

¹ Based upon Company compiled consensus, the Board believes the average analyst forecast for 2024 underlying operating profit to be £25.8 million.

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About Epwin

Epwin is the leading manufacturer of energy efficient and 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.

Information for investors can be accessed www.epwin.co.uk/investors/