Epwin Group

LN: EPWN

£105.1m market cap

73.5p last close

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.

Investment summary

FY18 ended in line with a narrow range of market expectations, which confirms a material improvement in H2 profitability was achieved versus H1. This is partly a normal seasonal effect but also shows some year-on-year progress, demonstrating some recovery from previously noted customer ownership changes. Operational improvements – including exits from two sites (Cardiff and Macclesfield) – and a contribution from Amicus (the 15-branch building products distribution business acquired in March) would have contributed to this outturn, which was achieved despite input cost pressures (especially PVC). Management commented that year-end net debt was less than 1x EBITDA. FY18 results are scheduled to be announced on 10 April.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2016A 293.2 33.3 24.3 14.7 5.0 3.4
2017A 298.3 30.3 20.5 12.4 5.9 5.3
2018E 292.2 27.2 17.0 9.7 7.6 4.7
2019E 295.8 28.2 17.9 10.2 7.2 3.9
Last updated on 19/03/2019
Industry outlook

Epwin is exposed to both RMI (c 70% revenue) and newbuild (c 30%) in the UK housing market. Newbuild activity is clearly still growing, while RMI demand has been more patchy. Referencing potential post Brexit consumer confidence, industry commentators have expressed near-term caution.

Last updated on 19/03/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (£m) 25.1
Forecast gearing ratio (%) 27
Price performance
%
1m
3m
12m
Actual (1.7) (3.1) (10.1)
Relative* (3.7) (10.8) (12.7)
52-week high/low 90.0p/68.0p
*% relative to local index
Key management
Jon Bednall CEO
Chris Empson FD