Epwin Share Discussion Threads

[spob] 21/1/2015 22:01

Does Edison have a financial relationship with Epwin of any kind ?

[skyship] 21/1/2015 14:51

Sorry - shouldn't have put that - not a year for talking politics.

[speedsgh] 21/1/2015 14:45

I take it you don't wear a red tie then? Or did Labour ditch that for a colour more suited to the centre ground a long time ago? :o)

[skyship] 21/1/2015 14:44

Nice to see the development of good two-way trade - often signifies a change of trend does it not?

[skyship] 21/1/2015 14:42

speedsgh - absolutely, always subject to trading conditions, force majeure etc. Agreed, it is their stated policy - but nothing certain in life other than a Labour Govt would pan the economy!!! Oh, Death & Taxes of course , but that's the same thing...

[speedsgh] 21/1/2015 12:47

Skyship - "The Board have committed to a dividend of 4.24p/share for 2014; 6.37p/share for 2015."

I believe it is the Board's INTENTION to pay dividends as above subject to the usual caveats as contained in the Dividend Policy in their AIM admission prospectus (see below). That is not quite the same as a 'commitment' as it does leave some wriggle room should things not pan out as they expect. However I am more than happy with their stated policy.

Sorry. Probably just me being pedantic :o)

From the AIM admission prospectus...
10. Dividend Policy
The Directors’ intention is to implement a progressive dividend policy, subject to the discretion of the Board and to the Company having sufficient distributable reserves. It is the Directors’ intention, based on their expectations of current and future trading and track record of the business, to pay total dividends in respect of the year ending 31 December 2014 that equate to a 4.24 per cent. dividend yield, calculated on the Placing Price, with an amount equating to 1.41 per cent. of the Placing Price being paid as an interim
dividend in respect of the 6 months to 30 June 2014 and the remainder being paid as a final dividend in respect of the full year to 31 December 2014.

For the year ending 31 December 2015 (being the first complete financial period as an AIM quoted Company), subject to the discretion of the Board, having taken into account the current and expected future trading performance of the Company, and to the Company having sufficient distributable reserves, it is the
Directors’ intention that the total annual dividend payable will equate to a 6.37 per cent. dividend yield, calculated on the Placing Price.

[bluebird123] 21/1/2015 10:57

Hi Skyship - I saw your write up om the Motley Fool boards and Stemis3 very astute reservations.I post there occasionally under the username Vambow. In terms of that thread I wouldn't be interested in either Safestyle or Entu but have picked up some Epwin recently.
As you highlighted it's much better diversified that Safestyle and had a fairly impressive list of institutional backers at flotation including Ruffer's.
From the Edison report they forecast modest net gearing at year end rising to net cash of 9.5 mil by y/e '16.They also state that they feel their forecasts may be too conservative and that the company may even move into net cash for the year end just gone.Worth noting that their properties appear to be held leasehold so there isn't freehold backing here.
Post flotation Brian Kennedy & Anthony Rawson still retain 20,250,000 shares apiece with an 18 month lock in.Not a share for housing bears but at these levels hopefully good value as you say.
I wonder too if the changes announced in the pension rules recently will help people free up money to spend as they choose with home improvement companies benefiting.

[skyship] 21/1/2015 10:13

Yes, looks like a single seller managed to unload a few this morning. Don't know why I should think its Chelverton, but I do. They had a few in their Small Companies Dividend Trust (SDV). May have held those but selling a few elsewhere in the Management group for whatever reason. Perhaps a client lost heavily on the Swiss Franc!

From SDV Interims:
We added two IPOs; Epwin Group, a specialist provider of low maintenance building products, to the portfolio on an annualised yield of over 6% and Shoe Zone a discount shoe retailer on an annualised yield of over 5.5%...

Anyway Tilts, glad you too think these may be offering value at this level.

[tiltonboy] 21/1/2015 08:51

jeez! I got those quick at 89p!

[penpont] 21/1/2015 08:00

Thanks for that clarification Skyship.

[skyship] 21/1/2015 07:30

Penpont - 7% yield at 91p is taken from the Prospectus. The Board have committed to a dividend of 4.24p/share for 2014; 6.37p/share for 2015.

[penpont] 20/1/2015 22:41

Glad to see some fellow supporters here.

There is a prospective 2015 dividend yld of 7% on offer at the current price according to Edison.

[gorse] 20/1/2015 10:27

Also had a few - thanks to Skyship for pointing this out of the Fool.

[skyship] 20/1/2015 10:27

Hi CWA - glad you too found your way here. Seem still to be a few sellers here; hopefully they'll dry up soon whilst giving a few chums the opportunity to take a view. I've done a small piece about these on the JDT thread:

[cwa1] 20/1/2015 08:17

Morning Sky

Good to see you and a few of the other "irregulars" hereabouts. I too had a small nibble as I felt it was a bit unloved looking. No doubt a case of fools seldom thinking differently rather than great minds thinking alike though ;-) Time will tell....

[hew] 19/1/2015 17:42

Double post.

[hew] 19/1/2015 16:55

Pleased not to be alone in finding no reason for the drop. The Statement 4 weeks ago could hardly be more reassuring regarding the current and near future position:

"......business continues to perform well .....results to be in line with market expectations.......continue to grow operating profits and to capitalise on anticipated future market improvements. "

The only sentence in that Statement which might be interpreted as foreshadowing something specific that will depress returns near term, and others may know of is:

"Continue to progress on the rationalisation programme of its operations to shape it for future growth with improving margins."

An acquisition?

Or did the departing director Mottershead hold a decent lump and is unloading?

[alter ego] 19/1/2015 16:52

Have also added this afternoon. I would have thought a low oil price would be beneficial for EPWN's raw material so a little surprised at the weakness in the share price

[bluebird123] 19/1/2015 13:07

Hope you are right there Skyship.Here's a brief overview from Edison research after the half year results -



One of the things which stands out is the forecast gearing of just 4% at year end after the IPO proceeds.Should put the company in a good position to consider bolt on acquisitions going forward as well as giving good underpinning to the attractive dividend yield.

[skyship] 19/1/2015 12:15

Hi Both. Stumbled across this over the weekend. Looks really rather good value & I see Simon Thompson of the IC rather likes it too.

With recently:

# Schroders picking up a line (some of Chelverton's stock would be my guess)
# A positive IMS
# The FD picking up stock @ 101p

...then the suggestion surely has to be everything on track; especially with the economy still improving and the EY Item club marking up their GDP growth f/c for 2015 due to the added impetus from cheaper oil.

EPWIN is so well diversified product wise, so there shouldn't be any nasty surprises anywhere, especially with the due diligence conducted at the so recent listing.

Just a few PIs increasing cash levels and more likely having stoplosses hit.

So, bought a few @ 91p, only 10k at the moment; but likely to add as I sell something elsewhere.

PER less than 9x; historic yield 4.67%; prospective yield 7.0%.

Has to represent VALUE in my book; even though as a Conventional Trading Company, it wouldn't usually find a place in my portfolio.

[bluebird123] 19/1/2015 11:19

Schroders have used the recent weakness to add to their holding.The update saying they were on track to meet expectations was less than a month ago and forecasts don't seem to have changed since then.I've bought in recently and hopefully it's nothing more than some light selling in a thinly traded market.

[lord gnome] 19/1/2015 10:51

Price breaking down still further, but why? No negative news or anything in the market that would explain this. Any ideas?

[hew] 25/9/2014 10:04

Stevie, ok! Happy that I see no basis for concern in the RNS itself.

[steviebaby] 25/9/2014 08:40

hew,
"Building Products". Sales strongly weighted in second half.
These numbers are good.

[hew] 25/9/2014 08:24

From a brief scan the Half Year numbers compared with those for 2013 seem ok and are said to be in line and operationally the problems in Building Products are said to be being addressed. However I am having trouble reconciling the figures given with those calc by Simon Thompson/Edison given in the IC piece. E.g.F/Y profits of £17.8m and Adj EPS of 11p. Would expect to have seen roughly 50% of those. Must take a proper look - unless someone else can clarify for me!

EDIT: Ah Ha! "The half year results for the 6 months to 30 June 2014 are therefore under the pre-flotation capital structure." So no basis for what I put above. Just have to accept that results are "strong"!