Telford window maker calm over customer's administration

Epwin Group, which has a large factory on Stafford Park where it makes uPVC windows and doors, warned last month that a major customer was facing "significant funding issues" and reviewing the business.

Last week Entu (UK), which sells energy-efficient home improvement products and which accounts for five per cent of Epwin's sales, entered administration, and its trade and assets were sold to a new entity.

The contract for Entu was not delivered from the Telford factory, where Epwin makes products under brands such as Profile 22, Patiomaster and Wrekin Windows.

But Entu accounted for five per cent of Epwin's annual turnover, and entered administration owing £3.9 million to the company, with no signs at present of whether the debt will be recovered.

Now Epwin has insisted it was in a strong position and would not be seriously affected by the impact of the debt. It is still doing business with Entu on a cash basis.

In a statement to the London Stock Exchange the Solihull-headquartered company said: "At the time the administrators were appointed to Entu a debtor balance, net of VAT, of circa £3.9 million was outstanding from this customer.

"The level of recoverability of this debtor is not able to be determined at this stage pending discussions with the administrators.

"Whilst it is obviously disappointing to report this, these amounts are well within the group's financial capacity and are non-recurring."

The company added that its financial position was strong, and that its own debt level leaves plenty of room to invest in the business.

Epwin Group cautioned earlier in the year that it was tackling rising costs after the collapse of the pound following the EU Referendum, but has seen sales continue to grow.

Revenues last year increased by 14.5 per cent to £293.2 million, while underlying operating profit was up more than a quarter, rising by 27.4 per cent to £25.6 million.

The company is set to announce its half-year results next Wednesday.