Epwin reports strong growth in full-year profits, margins
By Josh White
Date: Wednesday 09 Apr 2025
(Sharecast News) - Epwin Group reported strong growth in profits and margins for 2024 on Wednesday, despite lower revenue, as the building products manufacturer focused on operational efficiency and strategic delivery in a challenging market.
The AIM-traded firm said revenue for the 12 months ended 31 December fell to £324m from £345.4m in 2023, reflecting subdued market conditions and lower PVC input prices which reduced previously-applied surcharges.
However, underlying operating profit rose 3% year-on-year to £26.2m, while statutory operating profit increased to £28.5m from £20.7m.
Operating margins improved to 8.1%, up from 7.4% in the prior year.
Adjusted profit before tax rose to £19m from £18m, while basic earnings per share almost doubled to 11.75p.
The company proposed a final dividend of 3p per share, bringing the full-year payout to 5.1p, up 6% from 2023.
Shareholder returns during the year totalled £14.1m, including dividends and buybacks.
Cash generation remained strong, with pre-tax operating cash flow rising 6% to £42.1m and underlying cash conversion reaching 161%.
Covenant net debt stood at £15.4m, representing 0.5x adjusted EBITDA, as the group reported £60m in headroom under its extended banking facilities.
Operationally, Epwin said it completed three bolt-on acquisitions for £3m during the year, as it also expanded its trade counter network in Scotland and strengthened its GRP moulding capabilities.
The group also achieved certified Environmental Product Declarations for five products, becoming the first UK manufacturer of cellular PVC and GRP products to do so.
Trading in the first quarter of 2025 was reportedly in line with expectations, with revenue continuing to exceed prior-year comparatives since September.
While short-term macroeconomic uncertainty persisted, Epwin said it was well-positioned and confident in its ability to execute its strategy as markets recovered.
"For a fourth consecutive year, the group has delivered improved financial performance, meeting or exceeding market expectations despite a challenging market backdrop," said chief executive officer Jon Bednall.
"This year has again demonstrated the resilience of the group's strategy and operating model, as well as the dedication and expertise of all of my Epwin colleagues."
Bednall said that in the first quarter of 2025, the company was trading in line with expectations.
"We remain confident in the group's future prospects and expect to make further strategic progress this year, despite the ongoing macroeconomic and fiscal headwinds."
At 1240 BST, shares in Epwin Group were up 3.61% at 93.25p.
Reporting by Josh White for Sharecast.com.
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