Epwin Share Discussion Threads

[cordwainer] 05/1/2021 21:38

Keeping a watch here but recently picked up Brickability (BRCK) which seems a good value play with good growth potential.

[energeticbacker] 16/12/2020 16:00

If one likes the building materials sector this could be an interesting play, but Investor's Champion can think of more appealing opportunities, some of which can be found in their Portfolios and Bonkers Bargains features.

[18bt] 16/12/2020 07:25

Strong trading update and likely reinstatement of dividend. Lot's of evidence of the RMI sector being very strong including Travis Perkins this morning.

[dope007] 04/12/2020 09:01

Expensive up here

[dope007] 17/11/2020 14:11

Eurocell statement is being read across to Epwin

[farrugia] 17/11/2020 13:05

Finally moving. I have quite a bit of this. The home improvement trend should favour this kind of company.

[davebowler] 10/9/2020 08:25

Zeus; Strong trading post lockdown and reintroduction of forecasts Since the easing of lockdown restrictions, Epwin has seen stronger demand than had been expected. As a result, ZC reintroduces forecasts for FY20 and FY21 based on guidance provided by the Company. This includes a small dividend estimate of 1.0p for FY20 increasing to 2.2p in FY21, it is assumed the 50% pay-out ratio target is reintroduced. Despite seeing an almost 100% closure of the business, and therefore revenue, over an eight-week period, Epwin has not needed to raise additional equity or asked its lenders for covenant waivers. This is in stark contrast to many of its peers in the building product space and is testament to the strong financial management of the business. Our assumption that volumes will be 15% down in FY21, relative to FY19, looks conservative and puts the shares on a recovery rating of c. 17x with a dividend that will grow in line with earnings. § Strength of the business highlighted by management’s confidence to reinstate guidance: Epwin has dealt with the COVID-19 situation and the resulting lockdown professionally, managing the business in the best interests of shareholders. It had low gearing going into lockdown, significant financing headroom and hasn’t needed a waiver on its covenants, let alone a rescue rights issue. Since restrictions began to ease in late-May, consumer demand, both RMI and DIY, across the building product sector has been materially stronger than expected. For Epwin, this has meant +ve L4L revenue performance in both July and August. This improved visibility on trading aligned to the financial strength of the business is allowing the management team to reinstate guidance at an earlier stage than most peers in the sector. § ZC forecasts better than expected: Estimates are reinstated for the current year to December and FY21. In FY20, revenue is expected to be down 19% yoy at £228.3m (FY19: £282.1m) following a 33% decline in H1. We assume H2 is marginally down yoy, a conservative approach considering the positive performance in July and August. Operating profit of £6.8m for FY20 shows a recovery to c. £8.5m in H2, c. 65% of the level achieved in H219. A very good performance in the circumstances. Net debt will increase marginally at c. £20.0m falling from a peak of c. £30.0m in March. FY21 is predicated on conservative estimates, assuming volumes are in line with the average current forecasts from the CPA and Experian for private housing RMI to be down c. 15% in 2021 relative to 2019. This is conservative, not just in quantum of the fall in the market, but also no outperformance is assumed despite the new products Epwin has brought to market. § Valuation does not reflect recovery potential: On conservative FY21 earnings, Epwin is trading on a recovery rating of 17.0x and a pre IFRS 16 EV/EBITDA of 8.7x. In addition, estimates factor in a small but recovering dividend from FY20 with the shares yielding 2.9% in FY21. On normalised FY19 earnings Epwin trades on sub 8.0x.

[dope007] 25/8/2020 12:37

Profine expand capacity in the UK hxxps://www.profine-group.com/en/news-and-media/#!/press-releases/profine-strengthens-its-position-in-the-uk-market-with-an-acquisition

[dope007] 25/8/2020 08:12

AIM stock so don't expect anything unless a takeover comes in

[bennya] 25/8/2020 08:04

This has got to rerate soon, numbers look solid and performing well. Half year results on 10th Sept so hopefully will start to see this climb. GLA

[pj84] 10/8/2020 17:43

Just reposting link hTTps://www.directorstalk.net/epwin-group-deliver-a-better-than-expected-performance-analyst-interview/

[sphere25] 06/8/2020 07:27

Another decent update: New build slow but steadily increasing with RMI being strong enough to have sales ahead of expectations. Importantly, the recovery is continuing into July and August: "..with very strong demand for PVC profiles in June, continuing throughout July and into August." Confident on the financial front too: "The Board has not sought to increase these bank facilities further nor access other sources of funding, as it believes its available cash and facility headroom provides sufficient liquidity and flexibility to pursue its strategic objectives. The Group met its banking covenants as at 30 June 2020 and does not currently anticipate needing to seek any variation to these pre-Covid-19 measurements." The bad news looks more than baked in here. Have to wait and see if the market begins a re-rating soon.

[dope007] 08/7/2020 19:39

In this industry Cheshire Epwin are one of the strongest. Their problem is being on the AIM mkt!!

[cheshire] 08/7/2020 15:31

Another possible winner could be Safestyle (SFE)

[cheshire] 08/7/2020 15:28

I have bought EPWIN today, looks like the government support announced today will have a very positive effect IMHO.

[farrugia] 08/7/2020 09:10

this company could possibly benefit from the new government scheme? https://www.bbc.com/news/business-53313640 which others might benefit?

[farrugia] 03/6/2020 12:59

bought here too but seems quiet so far

[sphere25] 28/5/2020 10:51

Nice update. Surprised the stock hasn't moved on that. Had a nice trade in this recently. Market looked precarious a short while back so took profits. Turned out to be a good move with the stock retracing significantly from 83p to 69p currently. Wider market is clearly pricing in a cure now with regular news on numerous vaccines. Struggling to see how else all the recent moves can be justified e.g. TRN. With that in mind tempted to re-enter here and watching for a break of 70. Financially secure, resuming operations and a gradual recovery in demand suggests there is cause for some optimism. Not suggesting that means a move back to the highs around 120, but surely an argument for testing the recent highs at 83p. A more solid company rather than some of the recent higher risk short term speculative ones I have highlighted. One to keep an eye on.

[davebowler] 28/5/2020 08:06

Zeus- Resumption of operations Epwin has announced that its manufacturing and distribution sites have restarted operations over the last few weeks with all main operating sites open by the end of this week. This is in line with other building product manufacturers, merchants and construction businesses. Demand has steadily begun to pick up as construction sites have started to return and, whilst it is still early days, should continue to increase as lockdown restrictions continue to be eased. Epwin will cautiously ramp operations to meet enhanced levels of demand. Cash management within the business has been good with funding headroom remaining at c. £45.0m, in line with the level announced at the end of March. Epwin remains well placed to weather the current environment better than most other building product companies, having managed its balance sheet conservatively. The restarting of operations is a welcome step towards normality and will hopefully lead to the restatement of guidance over the coming weeks. Manufacturing and distribution sites resuming operations: During May the number of distribution sites has steadily increased from the handful that remained supplying customers that had continued to operate. The main production facilities have also been reopening over the last three weeks and all sites will be back in production by the end of this week. Government health and safety protocols are being adhered to and the resumption is in line with construction sector generally, several peers having already indicated that operations would be returning during May. The statement clearly indicates that supply will only start to increase as demand comes through limiting the potential for increased levels of cash consumption. Managing the return will be difficult for the industry over the next few weeks as the potential for pent up demand to initially overstate the strength of the market is a potential issue. Some will deal with this better than most and we would expect Epwin to manage the process well operationally. Strong control of the cash flow: Headroom of £45.0m on the debt facilities of £75.0m is the same level as that announced at the end of March. A strong performance considering the near complete shutdown the construction sector experienced during April and the early part of May. Epwin had previously highlighted that its facilities would allow the business to withstand a complete shut down of six months, materially longer than looks to be playing out. The current indicated net debt position of c. £30.0m is c. 1.1x net debt, pre-lease adjustments.

[sphere25] 01/5/2020 16:07

Edison update today: https://www.edisongroup.com/publication/business-resilience-and-appropriate-actions/26738/ Been lobbing this and derisking across the board into these moves (as per profile disclosure). Wider markets look very precarious at the moment and Trump isn't helping with his comments on China.

[sphere25] 28/4/2020 14:15

Bang! Up another 11% This is fun!