Epwin reports strong year despite market challenges

10th Apr 2024 12:13

(Sharecast News) - Energy-efficient and low-maintenance building products specialist Epwin Group said in its final results on Wednesday that, despite challenges posed by raw material cost inflation and market volatility, it delivered a strong performance, with revenue totalling £345.4m and underlying operating profit reaching £25.5m, marking a 19% increase over the prior year.

The AIM-traded firm said its underlying operating margin improved to 7.4%, reflecting a 140 basis points increase year-on-year.

Strategic investments were a key focus for Epwin, with the integration of acquisitions from 2022 progressing as anticipated, bolstering its market position.

The group said it also made significant strides in expanding materials re-processing capacity and margin at Poly-Pure.

It also noted the the incorporation of a sustainability-linked loan into its banking facilities, aligning with its broader environmental objectives.

In terms of its current trading and outlook, Epwin said it was optimistic despite ongoing market uncertainties.

The group's range of building products had demonstrated resilience against macroeconomic headwinds, positioning it well for sustained growth.

Current trading was reported to be in line with the board's expectations, and Epwin said it was confident in its ability to execute its strategic initiatives effectively throughout 2024.

Positive medium and long-term market drivers, including environmental concerns and housing supply shortages, were expected to underpin the group's growth trajectory, reaffirming its position as a leading player in the building products sector.

"The group has, once again, delivered financial performance at, or ahead of, market consensus expectations, with 2023 results significantly ahead of a strong 2022 comparative," said chief executive officer Jon Bednall.

"This is testament to the combined efforts of all my Epwin colleagues and I would like to thank them for this and for the good progress we have continued to make with both our strategic and sustainability targets."

Bednall said the company's diversified portfolio of energy efficient and low maintenance building products left it "well positioned" when end markets recover, and to benefit from longer-term structural drivers of demand.

"We remain confident in the group's future prospects, despite the short-term macroeconomic headwinds and expect to make further progress in 2024."

At 1152 BST, shares in Epwin Group were up 0.6% at 84.5p.

Reporting by Josh White for Sharecast.com.