Panmure and Zeus have both adjusted their year-end forecasts for the Group. Shares off 17% following profit warning.
Companies: Epwin Group PLC
Epwin (LON: EPWN) has seen a drop in its share price today off the back of its trading update, leading to a cut in forecasts from City brokers.
The Group, who manufactures and supplies doors and windows to the UK market, said its 1H17 results were in-line with management's expectations yet were slightly ahead of Panmure Gordon's forecasts.
Price inflation on materials continues to hinder margins for Epwin, and this is set to continue for 2017 year-end numbers.
The group's customer base is also shifting, with one being sold to a competitor and another undergoing a strategic review due to funding issues.
As a result of these changes and continued challenging market conditions, the Board has lowered its expectations for 2017 year-end results leading both Panmure and Zeus to lower their profit forecasts by around 8%. Revenue estimates have, however, remained the same from both brokers.
CEO Jon Bednall had this to say regarding the trading update:
"Whilst the current market conditions continue to be challenging, we remain confident of the long term growth drivers in the RMI market and continue to progress with our strategy, focused on operational improvement, selective acquisitions to broaden our product portfolio, cross‐selling across our brands and product development."
The Group acquired National Plastics mid-2016, aiding in H1 17 revenue numbers, with the full interim report due September.
Shares are currently trading down 17%.