Epwin Group medium and long-term drivers remain strong

Epwin Group Plc (LON:EPWN), the leading manufacturer of low maintenance building products, supplying the Repair, Maintenance and Improvement, new build and social housing sectors, has announced its year-end trading update in respect of the year ended 31 December 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 £240m 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. £18m.

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 £3.8m on a cash and debt free basis.  In the year to February 2020, SBS revenues were around £6m.  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.”

Click to view all articles for the EPIC: ,
Or click to view the full company profile:
    Share on facebook
    Facebook
    Share on twitter
    Twitter
    Share on linkedin
    LinkedIn
    Epwin Group Plc

    More articles like this

    AFC Energy

    AFC Energy: Feedback post Capital Markets Event

    AFC Energy plc (LON:AFC) hosted its maiden Capital Markets Event yesterday, giving an excellent summary of its progress in the last year and its prospects. The company is making good progress in commercialising its EV charging product alongside

    boohoo Plc

    Boohoo Group: FY21 Results

    Boohoo Group plc (LON:BOO) has announced results for the 12 months ended 28 February 2021, reporting a strong finish to the year, with performance ahead of ZC’s forecasts, driven by strong momentum in both the UK and USA

    AFC Energy

    AFC Energy hosting virtual Capital Markets event today

    AFC Energy plc (LON:AFC), a leading provider of hydrogen power generation technologies, will today host a virtual Capital Markets Event for investors and analysts at 2pm BST. To view the webcast, investors should join using the following link:

    boohoo Plc

    Boohoo Group revenue up 41% to £1.745 billion

    Boohoo Group plc (LON:BOO) has announced its final results for the year ended 28 February 2021.   2021 2020 Change   £ million £ million   Revenue 1,745.3 1,234.9 +41% Gross profit 945.2 666.3 +42% Gross margin 54.2%

    Inchcape

    Inchcape: Update to forecasts

    Inchcape plc (LON:INCH) delivered better than expected Q1 results last week and is showing signs of a broad-based recovery across a number of geographies. The Group recently announced its decision to right-size its Russian retail operations with a

    Inchcape

    Inchcape results ahead of expectations

    Inchcape plc (LON:INCH), the leading independent global automotive distributor, today released its Q1 Trading Update covering the period from 1st January to 31st March 2021. ·    Group revenue £1.9bn: up 2% on an organic basis, and down 3% reported ·    Continued