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 the following statement in respect of current trading, in advance of today’s Annual General Meeting:
“I am pleased to report that trading in the year to date has continued to be strong. Demand from the Group’s key markets continues to be high, with indicators of consumer confidence strengthening. Revenues for the first four months of the year are 56% ahead of 2020 (which included the first lockdown period) and 9% ahead of 2019, predominantly driven by demand from the RMI market.
“As previously reported, supply chains continue to be under pressure from both high market demand and shortages from global events and supplier issues. As a result, raw material prices have continued to increase and the Group is taking steps to mitigate these equitably through price increases and surcharges, albeit this process naturally lags the increase in input prices.
“The Group retains a strong balance sheet to support strategic investment. Covenant net debt at 30 April 2021 was £16.2 million (31 December 2020: £18.5 million), providing the Group with approximately £60 million of headroom on its facilities.
“The SBS acquisition, which completed in January, is trading in line with the Board’s expectations and is integrating well.
“The outlook for the current year continues to be favourable, notwithstanding the raw material cost inflation and supply chain issues, which we are managing proactively. The medium and long-term drivers for the Group’s markets also remain positive, with a shortage of housing, an ageing and underinvested housing stock, as well as environmental and safety concerns driving legislation and initiatives that will require improvements to homes on a larger scale than just essential maintenance.
The Board will update shareholders further in our half year trading update.”