Epwin Group

Overview
Price performance
Financials
Research
Thematics

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

Industrials |
Update

30.01.24

Epwin Group — Solid H223 leads to useful earnings upgrade

Industrials |
Update

19.10.23

Epwin Group — Strategic progress in tough markets

Industrials |
Update

05.05.23

Epwin Group — Solid results highlight management action

Industrials |
Update

22.11.22

Epwin Group — On course to hit full-year expectations

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Sector

Industrials

Equity Analyst

Andy Murphy

Director, Financials & Industrials

Key Management

Chris Empson

FD
Jon Bednall

CEO

Balance Sheet

Forecast net debt (£m)

14.6

Forecast gearing ratio (%)

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	12.4	7.5	17.8
Relative	9.4	2.9	16.2
52 week high/low	87.0p/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%.