Annual Report
While the market last year remained challenging, the Epwin Group continued to perform strongly, consolidating its market share and increasing turnover to £196m.
The year saw record sales of both rigid (PVC-U) and cellular (PVC-UE) extruded products. Sales of composite doors and conservatory roofs also showed healthy increases on 2006.
Profile 22 Systems, our leading window systems supplier, grew market share despite industry consolidation. The Group also unveiled the multi-million pound Twentyfour-Seven system from Swish Window and Door Systems, strengthening our position as a leader in the systems market.
Sister company Swish Building Products also reported a successful year, consolidating its leading market positions with the major plastics distributors, new home builders and housing associations, leading to a significant increase in sales value and volume. Production efficiencies and £1.5million of investment last year put the business in a strong position for the future.
The social housing sector recovered from delayed projects in the middle two quarters of the year to finish very strongly with excellent order levels in the last quarter. As sector specialists this increased activity has given Group companies Wrekin Windows and Permadoor a strong platform for the first quarter of 2008.
While the slowdown in the new build sector continued throughout the year, Windowbuild remains well placed to take advantage of the consolidation of the major house builders and will look to increase its market share through 2008.
The trade sector performed consistently in the face of a difficult market and stiff competition. Sierra maintained a very stable customer base and also gained promising new business.
In conclusion, the market remains challenging. However, while the sectors in which we operate are going through a period of change, our structure and strength means that we are well positioned to take advantage of the opportunities that this change generates.
In short, we are working smarter and harder to drive efficiencies throughout our businesses and in turn to drive forward improved service and better products to our customers.
The future
For the immediate future, energy and raw materials price rises will continue to present challenges for the Group as they will for all sectors of the UK economy. At the same time, the difficulties currently being experienced by the UK house builders will have implications for all high volume window and door producers. However, with our diverse markets and continued investment, the Epwin Group will have a greater degree of protection from these events than most.
The Group will continue to identify opportunities for innovative and market leading investment whilst, at the same time, progressively reviewing its existing operations, structure and cost base in pursuit of greater efficiencies and enhanced customer service.
The total home improvement market remains worth in excess of £4.5 billion in addition to the sizeable social, new build and DIY sectors. We will continue to ensure that we maximise our potential future return and capitalise on opportunities generated by market consolidation.
Key to our strategy is the recycling business Dekura which presents opportunities across all divisions. As the sole operator to collect, process, and offer full-cycle traceability on not just post industrial but also 'old' post consumer waste, Dekura strengthens our own< green credentials but also gives group companies and our customers a unique new opportunity to grow their market share.
Our size and scale gives us huge strength and stability. We understand our markets well and will remain at the forefront of innovation, research and development in each.
A.J.Rawson
Chairman