Epwin Group PLC, a leading manufacturer of energy-efficient and low-maintenance building products, has provided a trading update at its Annual General Meeting. The company's Chairman, Andrew Eastgate, expressed confidence in delivering underlying operating profit for the year in line with recently increased market consensus expectations. Despite macroeconomic headwinds affecting demand from housing construction and the RMI markets, the company remains optimistic about making further strategic and operational progress.
The group is carefully managing the balance between volume and margin, with revenues behind a strong prior year as expected. This is attributed to the impact of lower PVC input prices on levied surcharges and ongoing macroeconomic challenges. However, Epwin's diverse product range, customer base, operations, supplier relationships, and strong balance sheet provide resilience against short-term market changes.
Looking ahead, the medium to long-term drivers of Epwin's end markets remain positive, with the UK facing a shortage of new and affordable housing, an ageing and underinvested housing stock, and increasing concern about the quality of social housing. Environmental concerns are also driving legislation and initiatives that will require improvements to homes on a larger scale, aligning with the UK's net zero commitments.
The company is committed to returning capital to shareholders through its ongoing dividend policy and buyback program, alongside investment in the group's strategy. The buyback program, which was extended by a further 3 million ordinary shares, is subject to shareholder approval at the AGM. The Chairman also announced his retirement after nearly ten years on the Board, expressing well wishes for the future success of the company.
Epwin looks forward to updating shareholders further in the half-year trading update in the summer. The company's average analyst forecast for 2024 underlying operating profit is £25.8 million. For further information, shareholders can contact the company directly or its nominated advisers and brokers.
In conclusion, despite market challenges, Epwin Group PLC remains confident in its ability to deliver expectations and is focused on navigating the current landscape while positioning itself for long-term success in its end markets.