10th Apr 2019 10:04
LONDON (Alliance News) - Windows and doors manufacturer Epwin Group PLC on Wednesday said the loss of its two largest customers has caused a decline in both annual profit and revenue.
Pretax profit for 2018 fell 4.3% to GBP13.3 million from GBP13.9 million profit recorded a year ago. On an adjusted basis the figure declined 25% to GBP23.0 million.
Revenue for the year fell to GBP281.1 million from GBP292.8 million.
In the second half of 2017, Epwin lost the business of its two biggest clients, causing a hit to annual revenue of GBP27.4 million. The planned closure of its plant in Cardiff, Wales, has also led to a GBP7.3 million knock to revenue.
Epwin is to pay a final dividend of 3.20 pence, taking the total for 2018 to 4.90p versus 6.69p in 2017.
Epwin said the 2018 performance was "robust", despite the lost business impact, with "significant" progress made on ending lower margin and unprofitable activities.
All key product areas, the firm continued, achieved "strong" underlying revenue growth and market share gains.
Chief Executive Jon Bednall commented: "The group delivered a robust performance in 2018 whilst also making significant strides with our strategy of site consolidations and closures to deliver a more focused and valuable business for the future."
"It was also pleasing to see both market share and volume growth from our key product areas in the year."
Epwin said current trading is meeting expectations, and it is making progress on passing on price increases to mitigate the effect of cost inflation.
"Overall, the group has had an encouraging start to 2019, with progress in passing on price increases beginning to mitigate the significant material cost inflation experienced during 2017/18, combined with continuing good volume growth in our core products, and the initial benefits of our footprint reshaping," added Bednall.
"Current trading is line with the board's expectations and we look forward to updating shareholders on our progress during the year."
Shares were 4.7% higher on Wednesday morning at a price of 76.86p each.
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