Epwin Group

LN: EPWN

£126.4m market cap

88.4p 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

H119 results (11 September) included a flat y-o-y revenue performance together with a 10.7% uplift in underlying (pre IFRS 16) operating profit, with both divisions improving their contribution compared to the prior year. Price increases continued to recover previously seen input cost pressures and offset softer volumes in some areas. Key developments included the launch of a new aluminium window system in Extrusion & Moulding, the benefits of restructuring coming through in Fabrication & Moulding (where there was a small acquisition benefit also) and progress with a new warehouse and finishing facility at Telford. Epwin remains conservatively geared with net debt at the end of H1 of £29.2m.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 292.8 32.1 22.4 13.4 6.6 7.0
2018A 281.1 27.0 16.5 9.8 9.0 4.9
2019E 291.3 28.2 17.6 10.1 8.8 5.4
2020E 296.2 29.5 18.7 10.7 8.3 4.7
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 19/11/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (£m) 17.3
Forecast gearing ratio (%) 17
Price performance
%
1m
3m
12m
Actual 9.8 21.8 10.9
Relative* 7.4 18.5 5.1
52-week high/low 88.9p/68.0p
*% relative to local index
Key management
Jon Bednall CEO
Chris Empson FD

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