Epwin Group 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.
Epwin is exposed to both repair, maintain, improve (RMI, c 70% revenue) and new build (c 30%) in the UK housing market. Despite the expected weakness in new build, demand from the RMI market has remained more resilient with some optimistic signals beginning to emerge from new build for 2024.
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Chris Empson
FD
Jon Bednall
CEO
Forecast net debt (£m)
14
Forecast gearing ratio (%)
13
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 17.3 | 17.3 | 28.9 |
Relative | 14.1 | 9.8 | 22.8 |
52 week high/low | 93.8p/63.0p |
Epwin Group’s FY23 results were robust with management navigating inflationary pressures well. Longer-term, well-established growth trends imply that Epwin is well placed to leverage off increasing demand for its energy-efficient and low-maintenance building products. Management action contributed to overall margin expansion, a feature that we expect to continue. Epwin offers an attractive investment case with the potential for uplifts from additional self-funded M&A. It trades on a P/E ratio of 8.5x, c 20% below the long-term average of 10.7x, and yields over 5%.
Y/E Dec | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (fd) (p) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2022A | 355.8 | 41.6 | 16.5 | 8.84 | 10.4 | 3.2 |
2023A | 345.4 | 50.1 | 18.0 | 9.58 | 9.6 | 2.6 |
2024E | 345.5 | 43.8 | 19.4 | 10.27 | 8.9 | 3.0 |
2025E | 349.0 | 44.0 | 19.7 | 10.55 | 8.7 | 3.0 |