Epwin Group

13 September 2017

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

This announcement contains inside information

Epwin Group Plc

Half year results for the six months to 30 June 2017

Sound performance in challenging conditions

Epwin Group Plc (AIM: EPWN) ('Epwin' or the 'Group'), the low maintenance building products manufacturer, supplying businesses in the Repair, Maintenance and Improvement ('RMI'), new build and social housing sectors, announces its half year results for the six months to 30 June 2017.

Financial highlights

£m

H1 2017

H1 2016

Change

Revenue

149.9

143.3

+4.6%

Underlying operating profit

11.1

11.8

-5.9%

Underlying operating profit margin

7.4%

8.2%

-80bps

Profit before tax

Basic EPS

7.5

4.36p

10.4

6.08p

-27.9%

-28.3%

Dividend per share

2.23p

2.20p

+1.4%

Net debt

(28.2)

(29.9)

Operating cash conversion

75.7%

79.7%

(1) Underlying operating profit is operating profit before non-underlying items as defined in note 3.

(2) Operating cash conversion is pre-tax operating cash flow as a percentage of underlying operating profit.

Highlights

· Sound performance in challenging market conditions

· Continued top line growth in Extrusion and Moulding

· Significant input cost pressure on materials due to the weakening of sterling

· Will take time to pass on cost increases in current market conditions

· Continuing programme of consolidating production facilities and refining operating footprint

· Strong sales of award-winning Optima window profile system

· Continued investment in new products and materials

· Challenges with two largest customers, as notified on 16 August 2017. £3.9 million exceptional bad debt provided in respect of Entu (UK) plc administration

· Net debt of £28.2 million, less than 1x EBITDA and cash conversion remains strong at 75.7%

· Increase in dividend reflecting confidence in long-term outlook

Current trading

Group strategy and market conditions:

· Continue to make progress with our strategy, focussed on operational improvement, broadening the product portfolio, selective acquisitions, cross selling and market share growth in key sectors.

· Financial position remains strong, with net debt at the half year less than 1x EBITDA and with significant funding headroom to continue to invest in the business.

· Our key RMI market remains subdued, the newbuild market continues to be strong and there are indications of improved demand in the social housing market.

· As noted above, significant input cost inflation has been experienced which is a challenge to pass on immediately in a subdued and changing market.

· Against this market background, the Group had already commenced a programme of site consolidations to adjust its cost base and further improve the efficiency of operations and this is continuing, with the Board expecting circa £2.5 million of exceptional cash restructuring costs in the current financial year.

Issues affecting two of its customers, each accounting for around 5% of the Group's revenue, as reported in the recent trading updates:

· Entu (UK) plc ('Entu'), reported significant funding issues whilst the other has sold its plastic distribution business, which is principally supplied by Epwin, to a competitor of Epwin. Entu has since appointed administrators who sold the trade and assets to a new entity which has indicated their intention to continue trading and invest in the business. Epwin is currently supplying product on a cash basis to this entity and discussions on any future trading relationship are ongoing.

· The position in respect of the other customer has yet to be fully clarified.

· As a result of these two issues the Board expects the full year financial performance to 31 December 2017 to be slightly below current market expectations.

· The Board also now expects the financial performance of the Group in the financial year to 31 December 2018 to be lower than the market expectation for the current financial year.

Jon Bednall, Chief Executive Officer, said:

'Performance in the first half of 2017, despite the significant input price increases resulting from the weakening of sterling, demonstrates the resilience of the Group's business model and the Board's strategy.

We have continued to broaden our product portfolio and channels to market as well as drive operational efficiency and product development. However, in light of market conditions, the political and economic uncertainty and the highlighted customer issues, the Group has accelerated the implementation of a programme aimed at adjusting the Group's operational footprint.

We remain confident of the long-term growth drivers in the RMI market and continue to progress with our strategy, focused on operational improvement, selective acquisitions, product range expansion and development, and integration of operations. We are confident in continuing our record of strong cash generation and our ability to offer an attractive dividend to shareholders.'

Enquiries:

Epwin Group Plc +44 (0) 203 128 8100

Jon Bednall, Chief Executive

Chris Empson, Group Finance Director

Zeus Capital Limited (Nomad and Joint Broker)

Nick Cowles / Jamie Peel +44 (0) 161 831 1512 John Goold / Dominic King +44 (0) 203 829 5000

Pamure Gordon (UK) Limited (Joint Broker)

Erik Anderson / Andrew Potts +44 (0) 207 886 2500

MHP Communications +44 (0) 203 128 8100

Reg Hoare / Charlie Barker

Forthcoming dates:

Ex-dividend date 21 September 2017

Dividend record date 22 September 2017

Dividend payment date 20 October 2017

About Epwin

Epwin is a low maintenance building products manufacturer, supplying businesses in the Repair, Maintenance and Improvement ('RMI'), new build and social housing sectors.

The Company is incorporated, domiciled and operates principally in the United Kingdom.

www.epwin.co.uk

Group Business Review

Results

6 months ended

6 months ended

Key financials

30 June 2017

£m

30 June 2016

£m

Revenue

149.9

143.3

Underlying operating profit (*)

11.1

11.8

Non-underlying expense

(3.0)

(0.9)

Operating profit

8.1

10.9

Underlying operating profit margin

7.4%

8.2%

Operating profit margin

5.4%

7.6%

(*) Underlying operating profit is operating profit before non-underlying items as defined in note 3.

Revenues and underlying operating profit in the first half year were in line with the Board's expectations despite market conditions, particularly in the key RMI market, remaining challenging. As reported in the AGM Statement in May, materials price inflation has also had an increasingly significant impact upon costs in the period and this continues to be the case.

Revenues increased from £143.3 million in 2016 to £149.9 million in the 6 months to 30 June 2017, mainly due to the full period impact of the National Plastics acquisition in June 2016. On a like for like basis, revenues were flat at £142.7 million (2016: £143.3 million).

Underlying operating profit decreased by £0.7 million to £11.1 million, predominantly as a result of materials price inflation within Extrusion and Moulding.

Included in the non-underlying expense of £3.0 million is an exceptional bad debt provision of £3.9 million in relation to the administration of Entu (UK) plc and a £1.8 million release of surplus contingent consideration following the settlement of the earnouts associated with the 2015 acquisitions of Stormking and Ecodek.

In response to the on-going market conditions, since the half year the Group has accelerated its programme aimed at adjusting its capacity and cost base. In July 2017, the decision was taken to consolidate the Group's glass sealed unit manufacturing businesses onto the Group's site in Northampton.

Against this backdrop, and along with the two customer issues highlighted, the Group's performance demonstrates the robustness and flexibility of its business model and its ability to adapt over time to market challenges.

Segmental Results

6 months ended

6 months ended

30 June 2017

30 June 2016

£m

£m

Revenue

Extrusion & Moulding

91.5

90.5

Fabrication & Distribution

58.4

52.8

Total

149.9

143.3

Underlying segmental operating profit

Extrusion

10.9

11.6

Fabrication & Distribution

1.1

1.1

Underlying segmental operating profit before corporate costs

12.0

12.7

Corporate costs

(0.9)

(0.9)

Underlying operating profit (*)

11.1

11.8

Non-underlying expense

(3.0)

(0.9)

Operating profit

8.1

10.9

(*) Underlying operating profit is operating profit before non-underlying items as defined in note 3.

Extrusion and Moulding

· Revenue increased slightly from prior year at £91.5 million (2016: £90.5 million).

· Underlying operating profit decreased to £10.9 million (2016: £11.6 million) and underlying operating margin reduced from 12.8% to 11.9% primarily as a result of material cost price increase driven by the weakening of sterling and increases in employment related costs. The impact of the cost increases has been partially offset by selling price increases, new customer wins and operational improvements.

· The rainwater and drainage business continues to perform well and is 3.0% up on prior year as the investment made by the Group in this area is coming to fruition.

· The continuing investment and successful launch of the new window system, 'Optima', during 2016 is now reaping benefit to the Group. Following the 100% retention and conversion of the existing customer base in 2016 the system is now enabling us to win new customers which will bring benefit in 2018 and beyond. The investment in the latest machinery and tooling is also driving operational efficiencies within the window system extrusion business.

Fabrication and Distribution

· Revenue increased to £58.4 million (2016: £52.8 million) as a result of the full period effect of the National Plastics acquisition in June 2016.

· Operating profit remained flat at £1.1 million.

· As noted, market conditions, particularly in the key RMI market, remain challenging and the Group has commenced a programme aimed at adjusting its cost base. In July 2017, the Group implemented its plans for its two glass sealed unit manufacturing businesses to be consolidated onto the Group's site in Northampton. This process is expected to reduce overheads and is anticipated to payback in around 2 years.

· The Distribution businesses performed in line with expectations and continue to provide a strong pull through for the Extrusion and Moulding businesses. The National Plastics business, acquired in June 2016, has been integrated and is performing in line with the Board's expectations. The Group remains committed to its strategy of providing end users with product and service options principally supplied through independent local distributors, augmented where necessary by its own distribution businesses. This ensures that the Group maintains its comprehensive market reach.

Cash flow

6 months ended

6 months ended

30 June 2017

£m

30 June 2016

£m

Pre-tax operating cash flow

8.4

9.4

Tax paid

(1.4)

(1.2)

Acquisitions

(3.9)

(8.7)

Capital expenditure

(3.7)

(8.3)

Net interest paid

(0.6)

(0.5)

Dividends

(6.3)

(6.0)

Other

(0.1)

(0.2)

Net increase in net debt

(7.6)

(15.5)

Opening net debt

(20.6)

(14.4)

Closing net debt

(28.2)

(29.9)

The Group generated a pre-tax operating cash inflow of £8.4 million (2016: £9.4 million), representing cash conversion of 75.7% (2016: 79.7%).

During the period to 30 June 2017 the Group settled the earnout contingent consideration payable on the 2015 acquisitions of Stormking, £1.6 million cash and £0.6 million equity, and Ecodek, £2.3 million cash and £1.0 million equity.

At 30 June 2017 the Group had net debt of £28.2 million (31 December 2016: £20.6 million net debt, 30 June 2016: £29.9 million net debt).

Dividend

The Board is pleased to announce an interim dividend of 2.23 pence per ordinary share (2016: 2.20 pence). This will be paid on 20 October 2017 to shareholders on the register on 22 September 2017.

Outlook

The Board remains confident in the long-term drivers of the RMI market and there continues to be significant underinvestment by property owners in the repair and maintenance of the UK's housing stock, however, in the near term with the current political and economic uncertainty, market conditions are expected to remain challenging.

As reported in the trading updates, the Group has noted changing circumstances affecting two of its customers, each accounting for around 5% of the Group's revenue. Entu has appointed administrators who sold the trade and assets to a new entity which has indicated their intention to maintain continuity of trading and to invest in the business. Epwin is currently supplying product on a cash basis to this entity and discussions on any future trading relationship are ongoing. The position in respect of the other customer has yet to be fully clarified, however, as a result of these two issues the Board expects the full year performance to 31 December 2017 to be slightly below current market expectations. The Board also now expects the financial performance of the Group in the financial year to 31 December 2018 to be lower than the expectation for the current financial year.

The Group is continuing to add new products to its range and broaden its materials capability. We have launched our first aluminium product, as well as added further parts and components to our existing systems, supplementing our product range.

The Group's strategy remains focused on extending our product portfolio, technical capability and channels to market, both through investment in new products and acquisitions; operational improvement; cross-selling across our customer base; and leveraging the recognition and channels of our brands for the benefit of the Group. The Group's financial position remains strong with net debt at the half year less than one times EBITDA and with significant funding headroom to continue to invest in the business.

Condensed Consolidated Income Statement

for the six months ended 30 June 2017

6 months ended

30 June 2017

6 months ended

30 June 2016

Year ended 31 December 2016

(unaudited)

(unaudited)

(audited)

Note

£m

£m

£m

Group revenue

2

149.9

143.3

293.2

Cost of sales

(104.9)

(99.9)

(200.6)

Gross profit

45.0

43.4

92.6

Distribution expenses

(14.3)

(13.4)

(27.8)

Administrative expenses

(22.6)

(19.1)

(40.8)

Underlying operating profit

3

11.1

11.8

25.6

Non-underlying expense

(3.0)

(0.9)

(1.6)

Operating profit

8.1

10.9

24.0

Net finance costs

(0.6)

(0.5)

(1.0)

Profit before tax

7.5

10.4

23.0

Taxation

5

(1.3)

(1.8)

(3.4)

Profit for the period and total comprehensive income

6.2

8.6

19.6

Basic earnings per share

Pence

pence

pence

Earnings per share

6

4.36

6.08

13.85

Diluted earnings per share

Earnings per share

6

4.34

6.02

13.77

Condensed Consolidated Balance Sheet

as at 30 June 2017

30 June 2017

30 June 2016*

31 December 2016

(unaudited)

(unaudited)

(audited)

Note

£m

£m

£m

Assets

Non-current assets

Goodwill

65.7

65.7

65.7

Other intangible assets

4.3

4.7

4.5

Property, plant and equipment

37.3

38.0

37.9

Deferred tax asset

0.4

0.4

0.4

107.7

108.8

108.5

Current assets

Inventories

31.0

26.9

28.2

Trade and other receivables

46.6

49.4

41.4

Cash and cash equivalents

8

7.3

1.4

13.0

84.9

77.7

82.6

Total assets

192.6

186.5

191.1

Liabilities

Current liabilities

Other interest-bearing loans and borrowings

8

20.7

10.7

16.3

Trade and other payables

58.3

57.2

53.1

Contingent consideration

-

-

7.3

Tax payable

1.9

3.3

2.0

Provisions

0.5

0.7

0.5

81.4

71.9

79.2

Non-current liabilities

Other interest-bearing loans and borrowings

8

14.8

20.6

17.3

Contingent consideration

-

7.3

-

Provisions

3.6

3.8

3.7

18.4

31.7

21.0

Total liabilities

99.8

103.6

100.2

Net assets

92.8

82.9

90.9

Equity

Ordinary share capital

0.1

0.1

0.1

Share premium

14.1

12.5

12.5

Merger reserve

23.9

23.9

23.9

Retained earnings

54.7

46.4

54.4

Total equity

92.8

82.9

90.9

* Restated, see note 4

Condensed Consolidated Statement of Changes in Equity

for the six months ended 30 June 2017

6 months ended

30 June 2017

6 months ended

30 June 2016

Year ended

31 December 2016

(unaudited)

(unaudited)

(audited)

£m

£m

£m

Balance at the start of the period

90.9

80.1

80.1

Profit for the period

6.2

8.6

19.6

Issue of shares

1.6

-

-

Share-based payments

0.4

0.2

0.3

Dividends

7

(6.3)

(6.0)

(9.1)

Balance at the end of the period

92.8

82.9

90.9

Consolidated Cash Flow Statement

for the six months ended 30 June 2017

6 months ended

30 June 2017

6 months

ended

30 June 2016

Year ended

31 December 2016

(unaudited)

(unaudited)

(audited)

Note

£m

£m

£m

Cash flows from operating activities

Profit for the period

6.2

8.6

19.6

Adjustments for:

Depreciation and amortisation

4.5

4.1

8.8

Net finance costs

0.7

0.5

1.0

Taxation

1.3

1.8

3.4

Share-based payments

0.4

0.2

0.3

13.1

15.2

33.1

(Increase) in inventories

(2.8)

(1.1)

(2.4)

(Increase)/decrease in trade and other receivables

(5.2)

(6.7)

1.4

Increase/(decrease) in trade and other payables

3.4

2.0

(1.0)

(Decrease) in provisions

(0.1)

-

(0.3)

8.4

9.4

30.8

Tax paid

(1.4)

(1.2)

(3.8)

Net cash from operating activities

7.0

8.2

27.0

Cash flows from investing activities

Acquisition of subsidiary, net of cash acquired

(3.9)

(8.7)

(10.2)

Acquisition of intangible fixed assets

(0.4)

(0.6)

(1.1)

Acquisition of property, plant and equipment

(3.3)

(7.7)

(11.6)

Net cash from investing activities

(7.6)

(17.0)

(22.9)

Cash flows from financing activities

Net interest paid

(0.6)

(0.5)

(1.0)

Drawdown/(repayment) of borrowings

2.5

(5.0)

(5.0)

Capital element of finance lease repayments

(0.7)

(0.4)

1.9

Dividends paid

7

(6.3)

(6.0)

(9.1)

Net cash from financing activities

(5.1)

(11.9)

(13.2)

Net (decrease)/increase in cash and cash equivalents

(5.7)

(20.7)

(9.1)

Cash and cash equivalents at the beginning of period

13.0

22.1

22.1

Cash and cash equivalents at end of period

7.3

1.4

13.0

Bank Borrowings

(32.3)

(29.7)

(29.7)

Finance lease liabilities

(3.2)

(1.6)

(3.9)

Net debt

8

(28.2)

(29.9)

(20.6)

Notes to the Condensed Consolidated Financial Statements

for the six months ended 30 June 2017

1. Basis of preparation

These financial statements have been prepared on the basis of the accounting policies expected to be adopted for the year ended 31 December 2017. These are in accordance with the Group's accounting policies as set out in the Group's consolidated financial statements for the year ended 31 December 2016.

The recognition and measurement requirements of all International Financial Reporting Standards ('IFRSs'), International Accounting Standards ('IAS') and interpretations currently endorsed by the International Accounting Standards Board ('IASB') and its committees as adopted by the EU and as required to be adopted by AIM listed companies have been applied. AIM-listed companies are not required to comply with IAS 34 'Interim Financial Reporting' and accordingly the Company has taken advantage of this exemption.

On the basis of current financial projections and facilities available, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future and, accordingly, consider that it is appropriate to adopt the going concern basis in preparing these Interim Financial Statements.

The financial information in these financial statements does not constitute statutory accounts for the six months ended 30 June 2017 and should be read in conjunction with the Group's consolidated financial statements for the year ended 31 December 2016 which were (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and (iii) did not contain statements under sections 498(2) and (3) Companies Act 2006.

The condensed consolidated financial statements for the six months to 30 June 2017 have not been audited or reviewed by auditors pursuant to the Auditing Practices Board guidance on Review of Interim Financial Information.

The condensed consolidated financial statements were approved by the Board of Directors on 12 September 2017.

2. Segmental reporting

Segmental information is presented in respect of the Group's reportable operating segments in line with IFRS 8 'Operating Segments', which requires segmental information to be disclosed on the same basis as it is viewed internally by the Chief Operating Decision Maker.

Reportable segments Operations

Extrusion and Moulding Extrusion and marketing of PVC-U window profile systems, PVC-UE cellular roofline and cladding, rigid rainwater and drainage products and Wood Plastic Composite ('WPC') decking products. Moulding of Glass Reinforced Plastic ('GRP') building components.

Fabrication and Distribution Fabrication and marketing of windows and doors, distribution of cellular roofline, cladding, rainwater and drainage products, and manufacture of glass sealed units.

6 months ended

30 June

2017

6 months ended

30 June 2016

Year ended

31 December

2016

(unaudited)

(unaudited)

(audited)

£m

£m

£m

Revenue from external customers

Extrusion & Moulding

91.5

90.5

181.9

Fabrication & Distribution

58.4

52.8

111.3

Total

149.9

143.3

293.2

Segmental operating profit

Extrusion & Moulding

10.9

11.6

24.5

Fabrication & Distribution

1.1

1.1

2.9

Segmental operating profit before corporate and other costs

12.0

12.7

27.4

Corporate and other costs

(0.9)

(0.9)

(1.8)

Underlying operating profit

11.1

11.8

25.6

Non-underlying expense

(3.0)

(0.9)

(1.6)

Group operating profit

8.1

10.9

24.0

Net finance costs

(0.6)

(0.5)

(1.0)

Profit before tax

7.5

10.4

23.0

3. Underlying operating profit

'Underlying operating profit' is the key profit measure used by the Board to assess the underlying financial performance of the operating divisions and the Group as a whole. 'Underlying operating profit' is operating profit stated before items of non-underlying and non-recurring income and expense which include: amortisation or impairment of acquired intangible assets, business reorganisation costs, acquisition expenses, share based payments and one-off exceptional items.

Non-underlying expense

Amortisation of acquired intangible assets

(0.5)

(0.5)

(1.1)

Acquisition expenses

-

(0.2)

(0.2)

Surplus contingent consideration

1.8

-

-

Exceptional bad debt provision - Entu (UK) plc

(3.9)

-

-

Share based payments

(0.4)

(0.2)

(0.3)

4. Acquisitions

Acquisitions in the year ended 31 December 2016

On 10 June 2016, the Group acquired the entire issued share capital of Specialist Plastics Distribution Limited and subsidiaries, together trading as 'National Plastics', for cash consideration of £10.0 million.

The following table summarises the consideration paid for Specialist Plastics Distribution Limited and the fair values of the assets and liabilities acquired at the acquisition date.

Specialist Plastics Distribution Limited fair values on acquisition

£m

Recognised amounts of identifiable assets acquired and liabilities assumed:

Acquired intangibles - brand

1.0

Property, plant and equipment

0.8

Inventories

2.2

Trade and other receivables

1.2

Cash and cash equivalent

-

Other interest-bearing loans and borrowings

(0.2)

Trade and other payables

(3.9)

Income tax payable

(0.1)

Dilapidations provision

(0.3)

Deferred tax liability

(0.3)

Fair value of assets acquired

0.4

Goodwill

9.6

Total consideration

10.0

Consideration

Cash consideration

10.0

Total consideration

10.0

National Plastics is a chain of plastic distribution outlets with a network of depots across the UK. National Plastics forms part of the Fabrication and Distribution segment.

On acquisition, intangible fixed assets of £1.0 million were recognised, representing the National Plastics brand. In addition to this, a fair value adjustment of £0.3 million was made for property dilapidations.

The goodwill recognised of £9.6 million represents the collective local market knowledge of the workforce, plus the potential for cross-selling and synergies that exist as a result of the larger scale of the Epwin Group.

Acquisitions in the year ended 31 December 2015

The following table summarises the adjustments made to the provisional acquisition accounting during 2016 for the 2015 acquisitions of Vannplastic Limited, trading as Ecodek, and Stormking Plastics Limited, as well as the final settlement of contingent consideration for both acquisitions during the 6 months to 30 June 2017.

Stormking Plastics

Limited fair values

on acquisition

£m

Vannplastic

Limited fair

values on

acquisition

£m

Provisional acquisition fair values of assets acquired

31.2

6.7

Measurement period adjustment to goodwill

-

1.8

Fair value of assets acquired

31.2

8.5

Consideration

Cash consideration

20.3

3.6

Equity consideration - ordinary shares

6.7

1.6

Initial consideration

27.0

5.2

Contingent consideration settled in cash in 2016

0.2

-

Contingent consideration settled in cash in 2017

1.6

2.3

Contingent consideration settled in equity in 2017

0.6

1.0

Surplus contingent consideration provision

1.8

-

Total consideration

31.2

8.5

During the period to 30 June 2017 the Group settled the earnout contingent consideration payable in respect of the 2015 acquisitions of Vannplastic Limited ('Ecodek') and Stormking Plastics Limited ('Stormking'). The earnout for Ecodek was settled on 21 February 2017 and comprised £2.3 million cash and £1.0 million shares. The earnout for Stormking was settled on 22 June 2017 and comprised £1.6 million cash and £0.6 million shares. As a consequence, the £1.8 million surplus provision for contingent consideration was released to the income statement in the period to 30 June 2017.

5. Taxation

The tax charge for the six months to 30 June 2017 is based on the estimated tax rate for continuing operations for the full year.

The main rate of corporation tax was lowered from 20% to 19% from 1 April 2017, and to 17% from 1 April 2020 (both changes now enacted). This will reduce the company's future current tax charge accordingly. The deferred tax assets at 30 June 2017 have been calculated based on the rate of 17% substantively enacted at the balance sheet date.

6. Earnings per share (EPS)

6 months ended

30 June 2017

6 months ended

30 June 2016

Year ended

31 December 2016

pence

pence

pence

Basic EPS

Basic earnings per share

4.36

6.08

13.85

pence

pence

pence

Diluted EPS

Diluted earnings per share

4.34

6.02

13.77

6 months ended 30 June 2017

6 months ended 30 June 2016

Year ended 31 December 2016

No.

No.

No.

Number of shares

Weighted average number of shares used to calculate earnings per share

- Basic

142,218,883

141,515,621

141,518,595

- Diluted

142,826,629

142,815,705

142,348,082

7. Dividends

6 months ended 30 June 2017

6 months ended 30 June 2016

Year ended 31 December 2016

£m

£m

£m

2015 final dividend of 4.24 pence per share

-

6.0

6.0

2016 interim dividend of 2.20 pence per share

-

-

3.1

2016 final dividend of 4.40 pence per share

6.3

-

-

6.3

6.0

9.1

The Group will pay an interim dividend of 2.23 pence per Ordinary Share in respect of the six months to 30 June 2017 (30 June 2016: 2.20 pence) on 20 October 2017 to shareholders on the register on 22 September 2017.

8. Net debt

6 months ended

30 June 2017

6 months ended

30 June 2016

Year ended

31 December 2016

(unaudited)

(unaudited)

(audited)

£m

£m

£m

Cash and cash equivalents

7.3

1.4

13.0

Bank Borrowings

(32.3)

(29.7)

(29.7)

Finance lease liabilities

(3.2)

(1.6)

(3.9)

Net debt

(28.2)

(29.9)

(20.6)

The facilities available to the Group at 30 June 2017 were a £17.5 million term loan, £35.0 million Revolving Credit Facility and £5.0 million overdraft, secured on the assets of the Group. The term of the loan and revolving credit facility is for four years ending December 2019.

9. Cautionary statement

This document contains certain forward-looking statements with respect of the financial condition, results, operations and businesses of Epwin Group Plc. Whilst these statements are made in good faith based on information available at the time of approval, these statements and forecasts inherently involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause the actual result or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts. Nothing in this document should be construed as a profit forecast.

10. Copies of this half year report

Further copies of this half year report are available from the registered office: Epwin Group Plc, 1b Stratford Court, Cranmore Boulevard, Solihull, B90 4QT or on the Company's website www.epwin.co.uk

Epwin Group Ltd. published this content on 13 September 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 13 September 2017 06:04:06 UTC.

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