Building products supplier Epwin said it was on track to make an underlying profit of more than £25m by the end of 2024 after posting a steady set of results in the first six months.
The London-listed group, which hiked its dividend by eight per cent in 2023 after its full-year profit came in ahead of market expectations, said it had traded “in line with expectations” the first six months of 2024.
Epwin’s revenue dipped compared to last year’s figure, which the group said was due to it being impacted by a drop in PVC input prices which reduced previously applied surcharges.
It added that continued weak demand in new build and RMI markets, a trend seen across the sector, had also affected its income.
Underlying turnover, excluding these surcharges, fell eight per cent from the first six months of 2023 and was 2 per cent lower than the second half.
Epwin also provided an update on its share buyback scheme. Having wrapped up the initial buyback in April 2024, the programme was boosted with an extra three million ordinary shares.
Since then, it said that 2.7m shares had been snapped up and cancelled at a cost of £2.4m, excluding fees.
The Board is keeping a close eye on the buyback’s progress. While there’s no guarantee the entire extended programme will be completed, the target is to wrap it up by 30 September 2024.
Jon Bednall, CEO, said: “Trading in the first half was consistent with the board’s expectations with underlying profit in line with a strong 2023 comparative, in what continue to be challenging markets.
“We remain confident of achieving our full year expectations, with a further year of profit progression, and have a positive view of our future prospects despite the short-term macroeconomic headwinds.”
Looking forward Epwin said it remained optimistic about the medium to long-term outlook for its markets, despite current challenges, as the UK continues to grapple with a shortage of new and affordable housing and the new government looks to increase home construction.