All Epwin Group manufacturing and distribution sites reopen
Low-maintenance building products company Epwin Group updated the market on its first half of trading on Thursday, reporting that all of its manufacturing and distribution sites had returned to operation, with additional Covid safe-working practices implemented.
The AIM-traded firm said demand had been stronger than expected from customers serving the repair, maintenance and improvement (RMI) market, while new build sector demand had been initially slower to return, although call-offs were now increasing “steadily”.
First half sales of £93m were ahead of the board's expectations, although 34% lower than the first six months of last year, due to the coronavirus lockdown.
Epwin said it had a “strong” balance sheet, with funding headroom increased by £10m to around £55m since its annual general meeting.
The board said it expected the company to meet all of its bank covenants, and added it was “optimistic” for its trading prospects in the second half.
“Since our last announcement in June we have seen sustained demand at higher levels than anticipated from the key RMI market and have continued to ramp up our activities to meet this,” said chief executive officer Jon Bednall.
“Market demand in other sectors is now showing good signs of returning and current trading remains better than the board expected.”
Bednall said the company was “optimistic” for trading prospects in the second half, and was expecting to make further strategic progress with its site consolidation and rationalisation programme, while continuing to manage the challenges that the pandemic presented.
“Looking further ahead, the medium and long-term drivers for the RMI market remain positive.”
Epwin Group said it intended to announce its half-year results for the six months ended 30 June on 10 September.
At 1407 BST shares in Epwin Group were up 1.57% at 68.05p.