Epwin Group PLC, a leading manufacturer of energy-efficient and low-maintenance building products, has announced its half-year trading update for the year ending 31 December 2024. The company reported that its underlying operating profit for the first half of 2024 is in line with a strong prior year comparative and board expectations. Despite lower PVC input prices and subdued demand in new build and RMI markets, the group's operating margins are ahead of the prior half-year. Revenues were slightly behind the previous year, but the group retains a strong balance sheet with low covenant net debt, providing over £55 million of headroom on its facilities to support strategic objectives, including value-enhancing acquisitions.
Epwin continues to return capital to shareholders through its ongoing dividend policy and share buyback program. The company extended its buyback program and has repurchased and canceled 2.7 million shares at an aggregate cost of £2.4 million before fees. The board plans to monitor the progress of the buyback program, with the expectation that it will be completed no later than 30 September 2024.
Looking ahead, the group remains confident of delivering underlying operating profit for the year in line with market consensus expectations. The company's CEO, Jon Bednall, expressed confidence in achieving full-year expectations and a positive view of future prospects despite short-term macroeconomic headwinds. The group's medium to long-term drivers, including the shortage of new and affordable housing, underinvested housing stock, and increasing environmental concerns, remain positive.
Epwin expects to announce its results for the half-year ended 30 June 2024 on 11 September 2024. The company's CEO emphasized that the medium and long-term drivers for the group's products remain positive, and the board is optimistic about future prospects.