Epwin Remains Confident of Trading Expectations for 2023

TRADING DURING the first half of 2023 was in line with expectations, says Epwin Group Plc, manufacturer of energy efficient and low maintenance building products, supplying the Repair, Maintenance and Improvement (RMI), new build and social housing sectors.

In a H1 trading update, Epwin revenues increased to approximately £180 million, ahead of a strong 2022 comparative.

After a robust start to the year, trading moderated in the second quarter as macroeconomic factors and fiscal tightening impacted demand. However inflationary pressures on raw material costs continue to ease, although PVC resin prices remain elevated. Labour, power and other inflationary cost pressures continue to be managed through pricing, the company says.

The Group’s balance sheet shows net debt at 30 June 2023 at £16.1 million, which is approximately 0.6x adjusted EBITDA.

Outlook

Epwin says its confident of delivering underlying operating profit for the full year in line with market consensus expectations of £24m. This is despite the potential effect of short-term macroeconomic headwinds.

The business states the medium and long-term drivers of its market remain positive, with a shortage of new and affordable housing, an ageing and poorly maintained housing stock and increasing concern about the quality of social housing all helping to bolster future demand.

Jon Bednall, Chief Executive Officer, said: “I am pleased to report that trading in the first half was in line with the Board’s expectations and ahead of a strong 2022.

“We remain confident of achieving our full year expectations and have a positive view of our future prospects despite the short-term macroeconomic headwinds. Looking further ahead, the medium and long-term drivers for the Group’s products remain positive.”

>> Read more trading updates in the news