Epwin Group (AIM: EPWN)

Last close As at 27/03/2024

GBP0.77

1.50 (1.99%)

Market capitalisation

GBP108m

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, which implies a relatively robust end to 2023 with some optimistic signals beginning to emerge from new build for 2024.

Latest Insights

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Industrials | Update

Epwin Group — Solid H223 leads to useful earnings upgrade

Industrials | Update

Epwin Group — Strategic progress in tough markets

Industrials | Update

Epwin Group — Solid results highlight management action

Industrials | Update

Epwin Group — On course to hit full-year expectations

Sector

Industrials

Equity Analyst

Andy Murphy

Andy Murphy

Director, Financials & Industrials

Key Management

  • Chris Empson

    FD

  • Jon Bednall

    CEO

Balance Sheet

Forecast net debt (£m)

14.6

Forecast gearing ratio (%)

14

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (2.0) (4.4) 4.1
Relative (5.0) (6.9) (2.7)
52 week high/low 83.0p/63.0p

Financials

Epwin Group’s H223 trading was robust and management has navigated inflationary pressures well. As a result we have increased our FY23 and FY24 underlying operating profit estimates by 13.6% and 10.3%, respectively. 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 in FY24. 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 7.8x, c 30% below the long-term average of 10.7x, and yields c 6%.

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2021A 329.6 36.3 13.7 9.06 8.5 3.1
2022A 355.8 41.6 16.5 8.84 8.7 2.7
2023E 349.7 42.0 18.3 9.89 7.8 2.7
2024E 354.9 42.5 19.0 9.85 7.8 2.6

Research

Update

Industrials

Epwin Group — On course to hit full-year expectations

Outlook

Industrials

Epwin Group — The best is yet to come

Update

Industrials

Epwin Group — Expectations raised

Update

Industrials

Epwin Group — Good end to FY20 and start to FY21

Update

Industrials

Epwin Group — Positive trading tone into Q4

Update

Industrials

Epwin Group — Rising activity levels as H1 closes

Update

Industrials

Epwin Group — Resuming operations

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