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 though UK newbuild fundamentals remain favourable.
Industrials
Industrials
Chris Empson
FD
Jon Bednall
CEO
Forecast net debt (£m)
22.4
Forecast gearing ratio (%)
22
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 4.1 | 5.2 | (25.3) |
Relative | (0.2) | (2.9) | (25.6) |
52 week high/low | 107.2p/68.0p |
Epwin’s H122 results highlighted double-digit revenue and profit growth with a static 6% margin, which is a good result in highly inflationary markets. Divisionally, Extrusion & Moulding saw good revenue growth in most core divisions and margins increased, though they remain below pre-pandemic levels. In Fabrication & Distribution revenue growth was achieved due to M&A and price increases. The other highlights were confirmed deleveraging in line with guidance and a DPS uplift. Since the half year, Epwin has announced the acquisition of PVC reprocessor Poly-Pure for £15m. Epwin remains on track to achieve revised FY22 expectations.
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 | 19.0 | N/A |
2021A | 329.6 | 36.3 | 13.7 | 9.06 | 8.3 | N/A |
2022E | 349.5 | 38.1 | 14.6 | 8.14 | 9.3 | N/A |
2023E | 356.0 | 40.5 | 16.3 | 8.75 | 8.6 | N/A |
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