Epwin Share Discussion Threads

[steviebaby] 20/5/2016 11:47

Strong buy for me.
Stormking and Ecodek acquisitions both excellent - Good profitable businesses.
New window system now launched from Profile 22.
Lots of benefits from the recent business reorganisation due to come through this year.
And if it is indeed trading between 120 and 140, then we're due a 15% increase in the SP???

[imranawan] 20/5/2016 10:47

Yep - been stuck in a range of 120-140p. I noticed SFE issued a strong trading update yesterday, and hopefully this bodes well for EPWN. Time will tell I guess. Decent yield at this price.

[1861andy] 20/5/2016 10:28

This is on my watchlist seems to be stuck in range between 120 and 140 but at this price am tempted to buy as well.

Spread can be large on this share tends to reduce towards end of the day.

[ramridge] 20/5/2016 09:32

I have now read the Edison report and their main argument is that there will be decent growth (+18% eps) despite their market remaining flat. Reason? Recent acquisitions will start to produce full year contributions and boost eps. Forecast PE down to 9.5

The share price has fallen far enough for me to be tempted to buy. Will probably do it by close of play.

[steviebaby] 19/5/2016 15:05

BTW, underlying profit increased 9.8% from 2014 to 2015

[prospective investor] 18/5/2016 09:18

Looking at this as a potential buy. However they don't seem to be growing pre tax profits? 18.6m for the last 3 years. Is this likely to change in future?

[thomasthetank1] 05/5/2016 12:40

Read Edison's note on EPWIN GROUP PLC (EPWN), out this morning, by visiting hxxps://www.research-tree.com/company/GB00BNGY4Y86
"Epwin is investing in both divisions and this organic development strategy was complemented by two acquisitions in FY15. In this way, management is building business momentum despite flat markets and this should become increasingly apparent in FY16. As it does so, we see scope for a re-rating based on the delivery of strong earnings progress..."

[thomasthetank1] 05/5/2016 12:38

Read Edison's note on EPWIN GROUP PLC (EPWN), out this morning, by visiting hxxps://www.research-tree.com/company/GB00BNGY4Y86
"Epwin is investing in both divisions and this organic development strategy was complemented by two acquisitions in FY15. In this way, management is building business momentum despite flat markets and this should become increasingly apparent in FY16. As it does so, we see scope for a re-rating based on the delivery of strong earnings progress..."

[davebowler] 04/5/2016 15:39

Edison;

Epwin is investing in both divisions and this organic development strategy was complemented by two acquisitions in FY15. In this way, management is building business momentum despite flat markets and this should become increasingly apparent in FY16. As it does so, we see scope for a re-rating based on the delivery of strong earnings progress.

[thomasthetank1] 21/4/2016 17:01

Read Panmure Gordon & Co's note on EPWIN GROUP, out this morning, by visiting hxxps://www.research-tree.com/company/GB00BNGY4Y86
"FY15 results confirm Epwin continues to trade ahead of its pre-IPO guidance. Operational efficiencies resulted in EBIT margins increasing 80 basis points to 7.9%, resulting in an 11.4% jump in PBT to £19.6m (PG forecast £19.4m). Incremental operational gains are being delivered and recent M&A should drive margin expansion. Organic development and recent acquisitions are broadening the product range, strengthening Epwin’s already leading position within low maintenance building products. As a consequence, our investment thesis is predicated on self-help and an expansion of the product portfolio, rather than any macro tailwind. ..."

[elmfield] 21/4/2016 13:26

Thx for that, encouraging to see others agreeing with us holders!

[devoncop] 14/4/2016 12:44

Social Housing in particular will be struggling. This is an area I have some knowlege of. Housing Associations are now being forced to allow tenants to buy their houses at discounts and this, coupled with the price of land with consent and lack of money in Councils to build new directly owned stock is causing the issue.

My belief is this is likely to change as now QE has pretty much run its course only direct infrastructure investment is left to HMG to keep things ticking over. The escalating housing crisis also plays into this dynamic but this will not be an overnight story.

[speedsgh] 14/4/2016 12:32

devoncop - Yes, I would concur that reducing debt whilst the cost of that debt remains cheap is prudent. I am not excpecting a div cut in the current FY. Just slightly disappointed at the statement re the div going forwards. In theory they could just hold the div at the current level for the time being but more likely perhaps is a modest increase. Lsst time I checked consensus was for 6.60p in the current FY, an increase of just 3.6%.

Does anyone know why conditions in their end markets (RMI, new build and social housing sectors) are so challenging? I would have thought they would be the opposite at present?

[devoncop] 14/4/2016 12:08

speedsgh

It could be read like that but it could also be seen as reassuring that they will continue to reduce debt rather than doing as some of the large miners and oilers seem to be doing to try and retain shareholder loyalty.

There is no chance of the dividend being cut I would argue given the outlook and financials so we are still looking at a circa 5% yield as a minimum at the current share price.

[speedsgh] 14/4/2016 11:58

devoncop et al - I took the following statement as slightly negative in relation to the dividend going forward. How do you read it?

"As we move forward, the Board will prioritise the financial security of the Group whilst looking to be progressive with long-term shareholder returns when the opportunity arises."

Only looking to be progressive with the dividend when the opportunity arises? Sounds like they are managing expectations wrt dividend growth.

[devoncop] 14/4/2016 11:46

Elmfield

Interesting to look at the chart for SFE which operates to an extent in a similar market following its flotation. Between Nov 15 and March 16 it exhibited very similar patterns of trade to EPWN being seen as boring and unexciting. Since March it is up nearly 20% and is also throwing off cash for its dividend.

Patience is the key with these stocks. It strikes me as a good "Buffett" type stock in a "boring" sector that could do very well for its holders but what do I know ? :-)

[elmfield] 14/4/2016 11:29

I tend to agree, solid, I like solid.

[devoncop] 14/4/2016 11:26

These are a good example of results that get better as they sink in. No there isn't any 25 per cent revenue growth in booming makets but the business is throwing off a lot of cash in markets that are flat and costs are being well controlled.
The commitment to a progressive dividend will make these an ideal long term hold i would think.
Will be interesting to read ST's take.

GLA and dyor

[thomasthetank1] 14/4/2016 10:45

Read Panmure's note on Epwin Group (EPWN), out this morning, by visiting hxxps://www.research-tree.com/companies/uk/construction_materials/epwin_group_plc …
“FY15 results confirm Epwin continues to trade ahead of its pre-IPO guidance. Operational efficiencies resulted in EBIT margins increasing 80 basis points to 7.9%, resulting in an 11.4% jump in PBT to £19.6m (PG forecast £19.4m). Incremental operational gains are being delivered and recent M&A should drive margin expansion. Organic development and recent acquisitions are broadening the product range, strengthening Epwin’s already leading position within low maintenance building products. As a consequence, our investment thesis is predicated on self-help and an expansion of the product portfolio, rather than any macro tailwind. Despite the attractive earnings growth opportunities, Epwin is trading on a prospective free cash flow yield of 8.6% (12 month rolling basis), which is 25% higher than its peer group... These results support our…”

[thorpematt] 14/4/2016 09:29

Broker consensus at 11.5p EPS
So a mionor miss

There is a tad more debt on balance sheet than I think most brokers were thinking. We can see proviosions and Contingent considerations which relate to merger costs.

I think flat revenue is expected the costs saving offsets have done well to improve margin and that should also allow Epwin to be more price competitive than others moving forward which might assist with market share and thus better growh profile.

Since this has good cash generation and low debt levels that high yield looks safe and so whilst I don't expect this to perform like a BOO, I do like it in the portfolio as a longer term hold.

[elmfield] 14/4/2016 08:14

Steady as she goes, collect dividend, nice aim share for Isa with various tax reliefs.

[devoncop] 13/4/2016 14:44

Yep

Will be interesting if we get a spike in the last half hour ........

[speedsgh] 13/4/2016 14:41

Up early tomorrow morning...

Notice of Full Year Results -

Epwin Group plc, the vertically integrated manufacturer of low maintenance building products, supplying the RMI, new build property and social housing sectors, confirms that it will announce its final results for the year ended 31 December 2015 on Thursday, 14 April 2016.

An analyst presentation will be held at 9.30am on that day at the offices of MHP Communications, 6 Agar Street, London, WC2N 4HN.