The Epwin Group Plc Board has declared an interim dividend of 2.0 pence per share (HY22: 1.90 pence), representing an increase on the prior period of 5%. The dividend will be paid on 17 October 2023 to shareholders on the register on 29 September 2023 and is in line with the Board's dividend policy.
Other financial highlights include:
o Revenue ahead of a strong H1 2022, despite challenging market conditions and slight moderation of trading in the second quarter
o Underlying operating profit 11% ahead of H1 2022, with a 60 bps improvement in underlying operating margin
o Margin recovery driven by pricing actions, operational improvement, easing raw material price inflation and cost management
o Ongoing positive cash generation, with pre-tax operating cash flow of £19.1m (HY22: £13.9m) and underlying operating cash conversion of 160%
Robust financial position:
o Robust balance sheet, with in excess of £60 million headroom on banking facilities to support strategic objectives
o Banking facilities renewed - £65 million Sustainability Linked Loan facility agreed with existing lenders through to August 2026 alongside a £10 million overdraft facility
o Reduction in covenant net debt to £16.1 million from £17.9 million as at 31 December 2022, primarily due to strong operational cash flows
o Covenant net debt 0.6x adjusted EBITDA, well within covenant limits and unchanged from the year-end notwithstanding the normal first half increase in working capital and prior year acquisitions
