Epwin Share Discussion Threads

[arf dysg] 13/9/2017 10:18

EPS is 4.4p for the half year... does that make 8.8p for the full year?

If P/E=8, that puts the price per share at 70.4p. Ergo, if you buy right now (price=70p/share), you're buying at a P/E of 8.

[this_is_me] 13/9/2017 10:11

Thanks Daniel.

[arf dysg] 13/9/2017 10:08

danieldruff, surely Brian Kennedy is not going to use Entu as a way to harm Epwin's business? If BK helped set up Epwin in the first place, he's probably got an interest in the success of Epwin.

[danieldruff2] 13/9/2017 07:31

Could have been worse but they are being more than a little coy in not mentioning that Brian Kennedy, a key force behind the flotations of Entu and Epwin, is the guy who just bought Entu out of administration

[elmfield] 13/9/2017 06:08

In order to save face they increase the div by just 1 odd percent.
In my view they would have been better to cut by say 15%
Facing reality in the long term might serve the board and shareholders better
in a period of uncertainty.

[danieldruff2] 07/9/2017 17:43

More of interest is how they cope with temporary production overcapacity. I only gave a cursory glance with what went wrong with Entu but looking through a few results RNS it seemed to go like this:

1) We're great
2) Govt changes rules on solar subsidy
3) We have overcapacity
4) We're having a strategic review
5) We're dead

[rcturner2] 07/9/2017 17:23

The rns states that the business has been bought out of administration and the new owners intend to invest in the business so I don't think that epwin have lost that revenue although obviously they have probably lost the money owed to them.

[egrid1] 07/9/2017 17:15

There are two issues as I see it as a layman. The company that has gone into administration and the other company now purchase by a competitor supplier.

The company in administration is likely to be a loss of the £3.9m. Not nice, but a one off. There is also the possibility in the future of losing out on the 5% of turnover conducted with that business. At the moment they are trading on a cash basis. So I guess there will be a wind down of volume unless or until somebody buys up the business from the administrators. Worse case scenario is a permanent loss of the 5% of business in the short term.

The other customer (distributor) is likely to continue to buy from Epwin in the short term, and whilst it may well switch all purchases to its new owner over time, I suspect this will take a while as the people they supply will need to be convinced of the merits of the new product. So I don't see this as being such an issue in the short term, and in the longer term would hope that Epwin can grow through organic and acquisitions to replace the loss fairly quickly.

So a confident company would probably take the write down on its balance sheet, maintain the dividend, and look to continue to trade and grow to cover the loss of custom. Shares should recover to a fair value pretty quickly.

But if there are major concerns for the market generally, then the company might want to protect the balance sheet and cut the dividend.

The announcement next week should tell us where we are going.

[this_is_me] 07/9/2017 13:41

Last year's total dividend was 6.6p; circa £9.4 million in total on an eps of 13.85p so I can't see that being a complete disaster.

Bought some more.

[mattboxy] 06/9/2017 21:32

If this turns out to be a full £3.9 m write down does it really justify the price movement we have seen in recent times?

[mattboxy] 06/9/2017 13:24

Maybe I should have cut it a bit later. Then again who doesn't want to be a shareho!!

[arf dysg] 06/9/2017 11:08

"The group will update shareho"

That's a new .. er .. preference. I didn't know there was such a thing as a share ho.

It takes all sorts
To make a world;
It's just that our sort's best.

[mattboxy] 06/9/2017 09:51

Epwin Group has announced that the parent company of the group's customer, Entu (UK), appointed administrators on 31 August who sold the trade and assets to a new entity.Epwin said the new entity had indicated its intention to maintain continuity of trading and to invest in the business. Epwin said it was currently supplying product on a cash basis to this entity and discussions on any future trading relationship were ongoing.Epwin had previously announced that the customer accounted for around 5% of the group's revenue.An update said: "At the time the administrators were appointed to Entu a debtor balance, net of VAT, of c£3.9 million was outstanding from this customer. "The level of recoverability of this debtor is not able to be determined at this stage pending discussions with the administrators."Whilst it is obviously disappointing to report this, these amounts are well within the Group's financial capacity and are non-recurring. "As stated on 16 August 2017, the Group's financial position remains strong with net debt at the half year less than one times 2016 EBITDA and with significant funding headroom to continue to invest in the business. "The Group will update shareho

[veryniceperson] 01/9/2017 10:00

8.9% dividend, dividend cover of 2.10 wil they maintain it. If they can and do, nice one for the bottom draw.

[mfhmfh] 01/9/2017 09:32

Is the modest share price rise in the last 2 days anything to do with ENTU going into administration?

[tdog1975] 29/8/2017 18:23

Have a good holding here and normally I would have sold but in this case it's a bottom draw share all in its own

[57andrewjh] 25/8/2017 10:36

I suspect the fate of Entu is the fear monger at present.

hxxp://www.doubleglazingblogger.com/2017/08/if-a-big-glazing-company-goes-bust/

[arf dysg] 25/8/2017 10:06

Fear and greed... fear and greed. Right now the market in Epwin shares has flipped over to fear.

If I had some money I might be greedy here, but would that be foolhardy or not?

The market is a game of chicken and he who jumps last is the winner, but he who jumps a little too late loses big time.

[arf dysg] 23/8/2017 10:54

A lorra lorra concern!

[danieldruff2] 22/8/2017 12:44

There's an awful lot of concern priced in!

[elmfield] 22/8/2017 12:41

Fwiw,
I sold at a loss, a large one at that.
Am very concerned on the general health of the construction industry.
Good luck.

[ed 123] 22/8/2017 12:39

Ta, Speedsgh.

If it plays out as Edison predict, then it'll be a very good income stock at 69p.

However, a downturn appears to be underway. It's a case of how deep and how long and how much it'll affect Epwin.

Holding with crossed fingers.

[speedsgh] 22/8/2017 12:25

New Edison research note...

Challenges, events and responses -