Epwin Group

LN: EPWN

£103.3m market cap

72.3p last close

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.

Investment summary

FY18 results matched our expectations with respect to earnings and year-end net debt levels in subdued market conditions. Epwin did post both volume and price uplifts in underlying terms for the ongoing businesses and both divisions recorded increased profitability from these operations in H2. Some successful restructuring actions were taken during the year although the effects of client losses in the prior year, together with input cost pressures, pared back headline revenues and underlying EBIT. We expect growth to resume this year with a small contribution from PVS (acquired after the year-end). It is too soon to call a significant uptick in market conditions but AGM comments confirm that the start to FY19 has been encouraging.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 292.8 32.1 22.4 13.4 5.4 5.7
2018A 281.1 27.0 16.5 9.8 7.4 4.0
2019E 291.3 28.2 17.6 10.1 7.2 4.4
2020E 296.2 29.5 18.7 10.7 6.8 3.9
Industry outlook

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

Last updated on 25/07/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (£m) 25.3
Forecast gearing ratio (%) 24
Price performance
%
1m
3m
12m
Actual (3.6) (13.9) (3.2)
Relative* (4.7) (14.4) (0.5)
52-week high/low 87.2p/68.0p
*% relative to local index
Key management
Jon Bednall CEO
Chris Empson FD

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