Epwin Group half-year ‘better than anticipated’
18th September 2018

Epwin Group PLC has post half-year results that were ‘better than anticipated’ with ‘Satisfactory trading despite challenging market conditions and cost inflation’, according to group CEO Jon Bednall.

The group had been hit by ‘adverse weather’ at the start of 2018 and had also demonstrated its resilience after losing two of its biggest customers in the previous half.

Jon Bednall said: "Trading in the first half year has been satisfactory, despite challenging market conditions and cost inflation. The site consolidation and development programme which commenced in late 2017 is progressing and is expected to be completed in the second half of 2019. Alongside these programmes we have continued the work necessary to broaden our product portfolio and invest in our operations for future growth.

"We remain confident in the long-term prospects for the repair, maintenance & improvement market and are continuing to progress our strategy, focused on operational improvement, selective acquisitions, product range expansion and development. We are confident in continuing our record of strong cash generation and our ability to offer an attractive return to shareholders."

In the six months to June, the group posted a £5.4million pre-tax profit, down from £7.5million reported the year before. Its revenue in that period fell from £149.9million to £142.9million.

The company said price increases are being implemented to address materials and labour cost inflation, which ‘continue to impact the industry’ but this was done in the face of ‘challenging market conditions.’

Epwin’s Extrusion & Moulding division’s revenue decreased to £88.5million from £91.5million due to losing the plastic distribution business of SIG PLC at the end of 2017, which resulted in a £7.5million revenue drop.

Fabrication & Distribution's revenue decreased to £53.9million from £58.4million. The company blames resizing the fabrication business in 2017 due to ‘subdued market conditions. The division also suffered from the loss of the SIG business and also from Entu UK PLC entering administration in 2017, resulting in the disposal of Indigo Products Ltd.
Epwin anticipates adjusted pretax profit for the full year will be in line with market expectations. In the half, adjusted pretax profit was £6.4million, down from £10.5million.