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 newbuild (c 30%) in the UK housing market. In the market recovery phase from the impact of the COVID-19 pandemic, RMI has clearly been the stronger sub-sector. UK newbuild fundamentals remain favourable also.
Industrials
Industrials
Chris Empson
FD
Jon Bednall
CEO
Forecast net debt (£m)
22.4
Forecast gearing ratio (%)
22
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 4.8 | 2.0 | (22.1) |
Relative | 0.9 | (7.7) | (24.0) |
52 week high/low | 107.2p/68.0p |
Epwin is well placed to leverage off a number of well-established growth trends that are set to continue to drive long-term demand for its energy efficient and low-maintenance building products. The recent interims highlighted how well management is coping with cost inflation, while the acquisition of Poly-Pure underscores the company’s ambition and ability to self-finance accretive expansion. Epwin trades on a P/E of 8.2x for FY23e versus a long-term average of 10.2x with clear potential to be valued at a higher level if margins can be raised, and/or further M&A is evident.
Y/E Dec | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (fd) (p) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2020A | 241.0 | 28.6 | 5.0 | 3.98 | 19.1 | N/A |
2021A | 329.6 | 36.3 | 13.7 | 9.06 | 8.4 | N/A |
2022E | 349.5 | 38.1 | 14.6 | 8.14 | 9.3 | N/A |
2023E | 356.0 | 40.5 | 16.3 | 8.75 | 8.7 | N/A |
Get access to the very latest content matched to your personal investment style.