Epwin profits on track after posting flat H1 revenues
Building products manufacturer Epwin expects full and half-year pre-tax profits to be in line with expectations despite posting flat first half sales.
Epwin reported first-half revenues of £140m, which were just down from the £140.5m recorded a year earlier and also in line with the board's expectations. Like-for-like revenues meanwhile were marginally ahead in comparison to those from a year before.
While the AIM-listed group's new PVC decking product was rolled out successfully and the launch of its new aluminium window system progressed in line with plans, Epwin's key markets remained "weak", with the key Repair, Maintenance and Improvement market widely reported to have contracted in the first half of 2019 and the overall UK macro-economic backdrop continuing to be uncertain, with low consumer confidence and low real wage growth.
However, Epwin said its medium-term market prospects remained "positive", driven by ongoing under-investment in RMI, demand for new build homes and social housing refurbishment.
Epwin's financial position was strong, with good cash generation and net debt at the half of £29.2m.
Chief executive Jon Bednall said: "Trading has been robust and we have made significant strategic progress with new product launches, the continued reshaping of the group's footprint and the acquisition of PVS.
"Current trading is line with the board's expectations, and while we remain cautious about macro-economic conditions, we expect to make further strategic progress in the remainder of the year and are confident about the group's longer-term prospects."
As of 1045 BST, Epwin shares had slipped 0.55% to 72.30p.