16th Apr 2015 09:37
LONDON (Alliance News) - Epwin Group PLC Thursday reported growth in profit in 2014 as revenue was boosted by strong demand for the company's extrusion products.
The building products manufacturer said its pretax profit more than doubled to GBP18.6 million in the year ended December 31, from GBP7.8 million the year before. Revenue increased 1.6% to GBP259.5 million from GBP255.3 million.
Revenue in the extrusion business increased 6% to GBP142.9 million, driven by sales of cellular profile, and assisted by the buoyant performance of housebuilders.
Plans to relocate a warehouse in Telford to a newly constructed facility adjacent to the Tamworth cellular extrusion facility in the second half of 2015, along with the relocation last year of the window systems foiling plant, are expected to create cost savings of GBP0.5 million per year.
Sales in the fabrication and distribution business decreased 3.2% to GBP116.6 million as lower margin business and a loss-making glass business were exited, it said.
The company, which listed on AIM last July, said it has progressed its "strategy of rationalisation" by disposing of non-core businesses and withdrawing from unprofitable business, as well as realising further benefits of its merger with the Latium group of companies in 2012.
It added that while the forthcoming UK general election may cause some "turbulence", the extension of the Affordable Homes Programme to 2020 may assist the business.
Epwin said it will pay a final dividend of 2.83 pence, making a total dividend for the year of 4.24p.
"There has been significant under-investment by landlords and property owners in the UK's housing stock, and we believe that the group will benefit from the UK economic upturn in the RMI market, as well as the increased focus on energy efficient buildings. We are well placed to continue to grow our operating profits in line with the expectations at IPO and to capitalise on future market growth opportunities," Chief Executive Jon Bednall said in a statement.
Shares in Epwin were trading up 5.8% at 106.15 pence Thursday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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