Epwin Group described strong start to year
Building products manufacturer Epwin Group reported “strong” trading in the first four months of the year on Tuesday, with revenues to 30 April being 15% ahead of the same period in 2021.
The AIM-traded firm, which was holding its annual general meeting, said demand remained “robust”, particularly from its key repair, maintenance and improvement (RMI) market.
Chairman Andrew Eastgate said material costs, particularly PVC resin, had continued to increase, mainly as a result of Russia's ongoing invasion of Ukraine.
“The group's strong relationships with its PVC resin suppliers have ensured it has been able to secure material supply,” Eastgate told shareholders.
“The group continues to work with its customers to pass these costs on equitably through price increases and surcharges and remains confident in its ability to manage further cost inflation.
“The group continues to make progress in pursuing its strategic objectives, including value enhancing acquisitions, and expects to make further market share gains whilst managing the challenges that the current operating environment presents.”
Eastgate said Epwin retained a “strong” balance sheet, and as at 30 April it had more than £55m of headroom on its banking facilities.
“The board remains confident of achieving its expectations in 2022, whilst mindful of the widely reported challenging macroeconomic conditions.
“Looking further ahead, the strength of the medium and long-term drivers of growth in our markets gives the goard confidence in the outlook for the group.”
The UK had an “ageing and under-invested” housing stock, Andrew Eastgate said, adding that there was an increasing focus on environmental, energy efficiency and safety concerns.
“Additionally, the lockdowns of the last few years have stimulated demand for home, garden and leisure spending, alongside the desire of consumers to create workspace in the home.
“The board will update shareholders further in our half-year trading update.”
At 1404 BST, shares in Epwin Group were up 4.28% at 83.43p.
Reporting by Josh White at Sharecast.com.