Epwin Group

LN: EPWN

Market Cap£163.8m

Last Close 114.75p

Epwin supplies functional low-maintenance exterior building products (including windows, doors, roofline and rainwater goods) into a number of UK market segments and is a modest exporter.

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Investment summary

Epwin FY20 results came in c £0.9m ahead of our expected £4.1m PBT (and c £0.6m better on a company defined basis, which excludes share-based payments) with EBIT and net interest both slightly better than anticipated. Overall group revenue and EBIT were down y-o-y by c 15% and c 56% respectively, with a group EBIT margin for the year of 3.9% (down 360bp). Almost all of the year-on-year dent occurred in H1 trading which was most directly affected by initial lockdown conditions. The second half performance was more comparable to H219 (slightly higher in revenue terms, slightly lower at the EBIT level). Good market momentum appears to have continued into the early months of 2021, with revenue in both divisions ahead of Q1 levels seen in both FY19 and FY20.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2019A 282.1 38.2 15.0 8.5 13.3 4.6
2020A 241.0 28.6 5.0 4.0 28.3 6.8
2021E 301.7 35.7 10.0 5.6 20.2 4.9
2022E 306.8 39.1 13.3 7.5 15.1 4.3
Industry outlook

Epwin is exposed to both RMI (c 70% revenue) and newbuild (c 30%) in the UK housing market. RMI activity is currently stronger that other sectors which are also recovering gradually. There is some caution associated with potential impacts of rising unemployment on consumer confidence.

Last updated on 03/08/2021
Content on Epwin Group
Epwin Group – Good end to FY20 and start to FY21
Industrials | Update | 15 June 2021
Epwin_Group (EPWN)
Epwin Group – Positive trading tone into Q4
Industrials | Update | 6 January 2021
Epwin_Group (EPWN)
Epwin Group – Rising activity levels as H1 closes
Industrials | Update | 7 August 2020
Epwin_Group (EPWN)
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Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 7.1 7.1 74.1
Relative* 6.7 5.9 43.7
52-week high/low 113.0p/64.1p
*% relative to local index
Key management
Jon Bednall CEO
Chris Empson FD