Epwin Group Plc (LON:EPWN), the leading manufacturer of low maintenance building products, supplying the Repair, Maintenance and Improvement (“RMI”), new build and social housing sectors, today announced its year-end trading update in respect of the year ended 31st December 2021.
The Group is pleased to report that trading remained strong through to the end of the year, with revenues for FY 2021 expected to be approximately £330m, up by 37% compared to 2020 and 17% compared to 2019. This has been driven by a combination of the ongoing strength of demand in the RMI market, price increases and recent bolt-on acquisitions.
The Group has continued to successfully navigate its way through the sector-wide operational, inflationary and supply chain pressures caused by the ongoing impact of Covid-19 and heightened demand levels. Accordingly, the Group now expects to report adjusted profit before tax for FY 2021 modestly ahead of current expectations1, subject to audit.
Cash generation remained strong in the second half of the year, with covenant net debt (pre-IFRS 16) as at 31 December 2021 significantly reduced to approximately £9m (2020: £18.5m; 2019: £16.4m), better than the Board’s expectations. This was achieved despite the Group completing several bolt-on acquisitions during the year, totalling £5.3m, including one acquisition in the second half of the year. Year-end leverage was less than 0.5 x adjusted EBITDA.
Trading in the first two weeks of 2022 has remained strong and has been in line with the Board’s expectations. The Board continues to monitor the development of the Covid-19 pandemic whilst managing the impact of absences across the workforce during the early part of 2022.
Notice of results
The Group will announce its full year results for the year ended 31 December 2021 on Wednesday 6 April 2022.
Jon Bednall, Epwin Group Chief Executive Officer, said:
“I am pleased to report that our trading performance in the second half and for the year as a whole was strong, despite the well-reported supply chain and inflationary pressures. This is testament to the hard work of our people in a year which has seen many challenges for businesses and individuals.
We are optimistic for the Group’s trading prospects in 2022 and remain confident in the strength of the medium and long-term drivers of our markets.”