Epwin Group (AIM: EPWN)

Last close As at 21/05/2024

GBP0.90

0.50 (0.56%)

Market capitalisation

GBP127m

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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Epwin Group — Solid H223 leads to useful earnings upgrade

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Epwin Group — Strategic progress in tough markets

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Epwin Group — Solid results highlight management action

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

Forecast gearing ratio (%)

13

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 3.5 15.6 32.8
Relative (4.0) 5.8 22.1
52 week high/low 94.0p/63.0p

Financials

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 10.1 3.1
2023A 345.4 50.1 18.0 9.58 9.3 2.6
2024E 345.5 43.8 19.4 10.27 8.7 2.9
2025E 349.0 44.0 19.7 10.55 8.5 2.9

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