Epwin Group, the building products supplier, has hiked its dividend by eight per cent after full-year profit came in ahead of market expectations.
The manufacturer, which supplies the new build housing sectors with low maintenance building products, is proposing a final dividend of 2.8p per share, resulting in a total dividend of 4.8p for 2023.
Underlying operating profit for the year came in at £25.5m, up 19 per cent and 4.5 per cent ahead of market forecasts as margins returned towards pre-pandemic levels.
Adjusted pre-tax profit rose marginally from £16.5m to £18m, while revenues dipped by £10m to £345.5m due to “more subdued volumes in private housing” and a “sluggish housing market.”
Jon Bednall, chief executive of Epwin, said it “has, once again, delivered financial performance at, or ahead of, market consensus expectations, with 2023 results significantly ahead of a strong 2022 comparative.
“Our diversified portfolio of energy efficient and low maintenance building products leaves us well positioned when end markets recover and to benefit from longer-term structural drivers of demand.”
The group announced a share buyback programme in November 2023 which it said was “progressing well” and would be completed in the second quarter. Around 3m shares have been repurchased to this date, at a cost of £2.3m.
“We remain confident in the Group’s future prospects, despite the short-term macroeconomic headwinds and expect to make further progress in 2024,” Bednall added.
In a seperate statement, Epwin Group announced a shake-up of its top brass. Andrew Eastgate, Chairman of the Board for almost a decade, will step down on May 21 and will be succeeded by Stephen Harrison, a non-executive director at the company and former chief exec of Forterra.
Kathy Callaghan will join as an independent non-exec director, bringing experience from Dyson, Vodafone and Lloyd Bank.
Andrew Eastgate said: “I am delighted to welcome Kathy to the Board and look forward to the valuable contribution I am sure she will make, drawing from her years of experience in substantial multi-site manufacturing businesses.
“For me, it has been a great pleasure to see the development of the Group over the last ten years, particularly, the expansion of its range of products and materials, as well as the successful integration of acquisitions and consolidation of its operations. I see the business as well placed for the future, with a strong balance sheet, low debt and an experienced management team.”