Midlands manufacturer Epwin Group looking ahead with confidence

Solihull-based Epwin Group Plc, which makes energy efficient and low maintenance building products, said it was confident of delivering underlying operating profit for the full year 2024, which were "in line" with market expectations.

In a trading update for the first half to June 30, the firm said the medium to long-term drivers of its end markets remained positive.

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The UK still faces a shortage of new and affordable housing, it noted, while the new government is committed to increasing the number of homes built.

There is also ageing and underinvested housing stock and increasing concern about social housing, while environmental concerns drive legislation, it said in the statement.

Based on consensus forecasts, the board said the firm was expected to report underlying operating profit of £25.8 million for the year (within a range of underlying operating profit expectations of between £25.6 million and £26.1 million).

CEO Jon Bednall said: "Trading in the first half was consistent with the board's expectations with underlying profit in line with a strong 2023 comparative, in what continue to be challenging markets.

"We remain confident of achieving our full year expectations, with a further year of profit progression, and have a positive view of our future prospects despite the short-term macroeconomic headwinds.

"Looking further ahead, the medium and long-term drivers for the group's products remain positive."

Epwin also noted it had a strong balance sheet with covenant net debt as at 30 June 2024 remaining low at £19.5 million (31 December 2023: £14.4 million).

It also continues to return capital to shareholders both via its ongoing dividend policy and share buyback programme, it added.