Epwin Share Discussion Threads

[cwa1] 27/3/2017 08:36

Morning

Took a few at 102'ish. Only a handful, so not exactly a conviction buy. Fingers crossed and hoping for the best that the performance of the company will be better than the performance of the share price

[asagi] 25/3/2017 11:18

it would be great for Epwin if landlords sold up. Owner occupiers spend far more on maintenance and improvement than a landlord ever would.

Asagi (long EPWN)

[thorpematt] 24/3/2017 16:23

Indeed. Commentry on landlords yesterday. Survey insinuating that most are looking to sell at this juncture due to the increase in cost etc.

Of course EPWN is already on a rating suitable for such poor sentiment BUT if it can continue to produce revenues etc in line with better performance then the contrarian view is better suited. Time will tell....

[harry the haddock] 23/3/2017 15:25

looking at the share price momentum is definitely building, but in totally the wrong direction! down over 10% in the last couple of weeks!

[speedsgh] 23/3/2017 14:06

Is Epwin's stock market momentum building? Private Punter reports -

[lord gnome] 03/3/2017 10:32

Yes indeed. I am rather hoping that the lowly rating for EPWN already has this outlook factored in.

[speedsgh] 03/3/2017 10:21

Worth noting some comment from Travis Perkins (TPK) results yesterday on the wider RMI market:



"The macro-economic outlook of the UK is mixed. The sharp decline in the value of Sterling since June 2016 has created cost pressures on imported goods and materials, and the expectations for secondary housing market transactions and growth in the RMI market have weakened."

[mattboxy] 15/2/2017 21:07

Another good day! Hopefully 120 tomorrow.

[brownie69] 15/2/2017 09:08

Ive dipped a toe in the water following the IC article. Very cheap based on fundamentals and in a sector that will benefit from the government housebuilding initatives. Plus a P/E of 7 and a dividend of 6%. A gem.

[mattboxy] 14/2/2017 19:21

It probably was ;-) nice to see some upward momentum though.

[lord gnome] 14/2/2017 17:15

I thought it was a rhetorical question mattboxy, but you could be right.

[mattboxy] 14/2/2017 17:12

I'll talk to myself but I think we may be re- ratingBe nice to see 120s on the chart

[mattboxy] 13/2/2017 21:16

Great finish are we starting to rerate??

[asagi] 13/2/2017 09:31

I think we all knew that spike would be welcomed by sellers. Schroders now < 5%.



Asagi (long EPWN)

[elmfield] 10/2/2017 14:19

Yes, a very bullish article.

[alter ego] 10/2/2017 13:15

Haywards, post 388 says it was tipped in the IC (on line) earlier this week but today will be in the paper version. Might explain some wider interest.

[haywards26] 10/2/2017 13:01

Tipped somewhere following trading update? IC perhaps?

[paleje] 07/2/2017 19:02

Yes I did wonder about that, speedsgh - didn't want to mention placing though, there's enough selling pressure already:) If they do let's hope it's sensibly priced and earnings accretive.

[speedsgh] 07/2/2017 16:42

paleje - re Panmure appointment...

EPWN had net debt of £29.9m at 2016 interims (net debt £14.4m at 2015 finals; net debt £2.2m at 2015 interims) so net debt has been steadily increasing. Maybe they envisage having to raise cash via placing to help fund further acquisitions + have appointed Panmure to bring in new IIs?

[paleje] 07/2/2017 09:50

Agreed nothing new, another report today from Edison which is paid for I think. Similar view, modest growth with good income.



I suppose the questions are how reliable are earnings going forward and can they do anything to improve them. Acquisitions might be the way, if any, otherwise it will probably be range bound imo.

I didn't understand why they appointed Panmure in December as joint broker, why would they need 2 brokers if they're content to carry on same old. I still don't know.

[lord gnome] 06/2/2017 23:14

Thanks paleje. Nothing new there, but nice to see Simon is sticking with it.

[paleje] 06/2/2017 22:09

They've got a glitch I asked him about it, I had same problem, I've seen the full article now but could only access it in incognito mode on chrome, don't ask me why because i haven't a clue. I've pasted it below, I don't think they'd mind as their website clearly has PROBS:-

Epwin on solid foundations

Aim-traded shares in Epwin (EPWN:106p), a manufacturer of extrusions, mouldings and fabricated low maintenance building products, have also failed to join the equity market rally since the company’s interim results ('Delivering results', 15 September 2016). I advised buying the shares at 110p at the time and feel an overdue re-rating looks highly likely in the coming months. That’s because a pre-close trading update ahead of full-year results on Thursday, 6 April 2017 points towards pre-tax profits rising by 24 per cent to £24.3m in 2016 to deliver a 17 per cent rise in EPS to 14.2p and support a modest rise in the payout per share to 6.6p.

This profit growth is clearly at odds with that of rivals who are also selling into the moribund repair, maintenance and improvement (RMI) market, and is being driven by the board’s shrewd decision to use the company’s lowly geared balance sheet to make earnings accretive acquisitions, a key reason why it listed on the Alternative Investment Market at 100p a share a couple of summers ago when I advised buying ('Moulded for gains', 29 July 2014). Indeed, Epwin has invested £50m including future earn-outs acquiring three companies: Wrexham-based Ecodek, a leading manufacturer and supplier of wood plastic composite; Tamworth-based Stormking, a leading supplier of moulded GRP building components to the housebuilding and construction industry in the UK; and National Plastics, a national distributor of building plastics to the trade. These businesses contributed £18.4m of revenue and £3.7m of operating profit on a margin of 20 per cent in the first half, and I understand that their performance since then “continues to be encouraging”, so underpinning the aforementioned full-year profit forecasts.

True, there is no doubting that some of its end markets remain challenging, prospects of a rebound in the RMI market look slim, and the weakness of sterling is leading to cost pressures. However, this all looks factored into a PE ratio of 7, a rating at odds with a company that is set to report a 21 per cent post tax return on equity. The modest rating is certainly not justified by any financial concerns: analyst Andy Hanson at house broker Zeus Capital estimates operating profits of £24.6m covered finance charges more than 17 times over and Epwin ended last year with net borrowings of only £21.3m, representing less than its operating profits. Cash generation remains strong, so much so that free cash flow of £12.1m is likely to improve this year as capital expenditure is reined back from £12.5m to £7.5m according to Mr Hanson’s models, leaving room for the company to recycle even more of this cash flow back to shareholders.

But even without another dividend hike, the lowly rated shares still offer an attractive yield north of 6 per cent with the payout covered more than two times. That represents value in my book and I maintain my target price of 140p. Buy.

[speedsgh] 06/2/2017 17:47

His article hasn't been avaiable on IC website all day afaict

[lord gnome] 06/2/2017 17:32

So he has paleje, but curiously, his article has now disappeared from the IC web site.

[paleje] 06/2/2017 13:43

Simon Thompson has tipped these today.