Epwin Group Plc (LON:EPWN), the vertically integrated manufacturer of low maintenance building products, supplying the Repair, Maintenance and Improvement (“RMI”), new build and social housing sectors, announced today its final results for the year ended 31 December 2016.
Financial headlines
· Underlying operating profit up 27.4% to £25.6 million
· Revenue up 14.5% at £293.2 million
· Acquisition strategy benefitting performance
· Continued improvement in operating margins, up 80 bps
· Continued strong cash generation, operating cash conversion 120%
· Balance sheet supports further investment in products, acquisitions and organic growth, leverage ratio at year end 0.6 times
· Proposed final dividend 4.40 pence per ordinary share, totalling 6.60 pence for the year (3.6% increase)
Delivering on our strategy
· Acquisitions made during the final quarter of 2015, Ecodek and Stormking, are integrating and performing well, both growing revenues and profits in the year
· Launch of new, market leading window system, “Optima”, in April 2016 on time and to budget. The award-winning system already has a strong market presence, reflected in the full conversion of the existing Profile 22 customer base as well as new customer wins
· Acquisition of National Plastics in June 2016, significantly increasing the scale of Epwin’s distribution operation and strengthening a route to market for the Group’s expanding range of products.
· Making good progress with material and product development that will benefit the Group in the medium term
· Continued good performance in Extrusion and Moulding, like for like revenue up 2%
· Continuing with actions to improve performance in the Fabrication business, improvement in underlying Distribution business
Current trading
· Current trading in 2017 has been in line with the Group’s expectations, however input costs have increased as a result of the weakening of sterling since June 2016 and the Group is passing the increases on to the market wherever possible
· Acquired businesses continue to trade well
· The Group continues to make progress with its strategy, focussed on operational improvement, broadening the product portfolio, selective acquisitions, cross selling and market share growth in key sectors. The Group is well positioned to benefit from its scale and market position, with its range of products, materials and routes to market providing a robust and flexible business model
Jon Bednall, Epwin Group PLC Chief Executive Officer, said: “We had another year of substantial progress having continued to deliver on our long-term strategy by investing in our product portfolio, completing a further acquisition in the year and continuing the drive to improve operational efficiency. The two acquisitions completed in 2015 are substantially integrated and we are pleased with their contribution to the Group.”
“Whilst the long-term impact of the EU referendum result on consumer confidence remains unclear, trading in the current year has been in line with management’s expectations. Input costs have increased sharply as a result of the weakening of sterling since June 2016. However, the Group is continuing its efforts to mitigate this and the Board remains confident in the long-term fundamentals of the Group and the markets it serves”
