Epwin Group (EPWN)

Business description

Epwin 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.

Stock data

Market cap.£116.1m
Last close81.25p
High / Low (52 weeks)128.5p / 65.5p
Stock market listingLN
Forecast net debt (£m)26.1
Forecast gearing ratio (%)27
SectorConstruction & Building Materials

Price performance

Relative *(5.9)9.2(23.1)

* % Relative to local index

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Company news

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2015A 256.0 25.6 19.2 11.7 6.9 4.6
2016A 293.2 33.3 24.3 14.7 5.5 3.7
2017E 300.3 30.6 20.8 11.9 6.8 5.5
2018E 276.9 28.5 18.8 10.5 7.7 4.2

Last updated on 15/02/2018

Investment summary

Epwin encountered some turbulence in FY17 arising from customer ownership changes but ended the year in line with company expectations set following H1 results. Management has understandably reinforced its strategic focus on improving the underlying operational performance (at both COGS and opex levels). Self-help initiatives are ongoing and we believe Epwin remains conservatively financed with a positive cash flow outlook. These factors support our assertion that the company is able to sustain its dividend attraction even during a temporary earnings dip in FY18.

Last updated on 02/03/2018

Industry outlook

Epwin is exposed to both RMI (c 70% revenue) and newbuild (c 30%) in the UK housing market. Newbuild activity is clearly ahead y-o-y, while RMI demand has been more patchy. Referencing potential post-Brexit consumer confidence, industry commentators have expressed near-term caution.

Last updated on 02/03/2018

Key management

Jon Bednall, CEO
Chris Empson, FD

Company address

1B Stratford Court
Cranmore Boulevard
B90 4QT
United Kingdom
01242 243444
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