Epwin Group PLC, a leading manufacturer of energy efficient and low maintenance building products, has provided a trading update for the second half of its current financial year (FY 2023). Despite variable end-market conditions in the UK construction sector, the company remains on track to meet FY 2023 expectations and achieve underlying operating profit ahead of the prior year. The Group has also made progress with its strategic initiatives, including operational improvement, new product development, integrating acquisitions, and sustainability. The medium and long-term drivers for the Group's products remain positive.
In addition, Epwin Group has announced the commencement of a share buyback program. The Board believes that the Group's strong balance sheet and cash generation provide an opportunity to repurchase shares at attractive levels. The buyback program will be carried out by Shore Capital on an irrevocable and non-discretionary basis. The program will be conducted within certain pre-set parameters and in accordance with the authority granted by shareholders. It is expected to end no later than 30 April 2024, unless otherwise agreed. The repurchased shares will be cancelled, and the program will not impact the Company's existing dividend policy.
It is important to note that the share buyback program may represent a significant proportion of the daily trading volume in the Ordinary Shares on the London Stock Exchange and could exceed 25% of the average daily trading volume. As a result, the Company may not benefit from certain exemptions under the Market Abuse Regulations. Any market purchases of Ordinary Shares will be announced the day after the purchase occurs.
Overall, Epwin Group's trading update indicates resilience in the face of challenging market conditions and progress in its strategic initiatives. The share buyback program reflects the Board's confidence in the Group's financial position and its commitment to maximizing shareholder value.