Epwin Share Discussion Threads

[rcturner2] 08/5/2018 14:58

Ex-dividend date 10 May 2018
Dividend record date 11 May 2018
Dividend payment date 4 June 2018

[arthur_lame_stocks] 11/4/2018 20:24

ok I see my mistake, adjusted eps was 13.47p so the divi would have been about 6.73p giving a yield of about 9%.

Frankly that just enforces my stance that i'm not going to sell these. Looking at the breakdown of exceptionals they do look genuinely exceptional being the Entu bad debt and rationalisation costs.

Ok so the profit may fall some more this year, but I wouldn't have thought it will fall so fat that it will actually leave these looking bad value.

[poleaxe] 11/4/2018 19:57

So based on the 2017 adjusted profit after tax what would have been the total dividend for 2017, can anyone work that out.

[arthur_lame_stocks] 11/4/2018 18:44

walbrock82

It does appear that this is the last year that they will be paying such a hefty dividend.

"Since the 2014 IPO, the Group will have paid £33.6 million of dividends, including the proposed 2017 final dividend. The Board has decided it is appropriate to review its dividend policy for future years. Therefore, in order to balance an attractive return to shareholders with providing flexible and efficient funding for the Group's growth and development plans, the policy will be to offer a progressive dividend that is approximately twice covered by adjusted after tax profits."

That kind of suits me, I don't really like companies with quite a lot of debt to pay out all their earnings in dividends. I'd like them to also try to pay down debt a bit.

[walbrock82] 11/4/2018 17:19

Writing a conclusion is a bit tricky because I don’t know the effect of the fallout from Entu bankruptcy and how long it will continue to impact Epwin performance. Then again, I feel management is putting out a more adverse statement, either to cover their “asses” or are they intentionally depressing the share price?
Right now, the shares are down by 3.7% to 76 pence.

Then again, it is continuing to pay a 9% dividend yield, which is eating into their capital reserves!
If future earnings forecast remains unchanged, then we are looking at PE of 6 times multiple which to me is far too cheap.
Finally, my instincts are leaning towards a BUY on Epwin, but recommend further research into this company.
For more on Epwin and other companies’ results from Tesco and Universe Group, click

[speedsgh] 11/4/2018 10:51

CUSTOMER ISSUES
As reported at the 2017 half-year, one of the Group's two largest customers, Entu (UK) Plc ("Entu"), accounting for approximately 5% of Group revenues, entered administration in August 2017 leading to a bad debt charge of £3.9 million. The Epwin subsidiary primarily supplying Entu, Indigo Products Limited ("Indigo"), was sold in December 2017. The disposal of Indigo, along with a new three-year agreement signed with the new owner for the supply by the Group of window profile and other building products, represents a reasonable conclusion as well as reducing the Group's exposure to this customer.

The other significant customer issue highlighted was the sale by SIG Plc of its plastic distribution business to one of our competitors. SIG Plc was the Group's largest customer, accounting for approximately 5% of revenue. The full impact of this is yet to be determined.

MARKET OVERVIEW & OUTLOOK
... As reported during the year, events at the Group's two largest customers had a significant impact on results and required immediate and decisive action by the Board. The sale by SIG plc of its plastic distribution business to a vertically integrated competitor of the Group has impacted sales although we continue to retain a share of the business via alternative distributors. We continue to supply extruded products to the former Entu business under a three-year supply agreement, albeit at a lower volume, having disposed of the Indigo fabrication business in December...

[speedsgh] 11/4/2018 10:48

Final Results -

Resilient performance despite subdued markets

Revenue +1.7%
Underlying operating profit -12.9%
Underlying operating profit margin -120bps
Adjusted profit before tax -14.2%
Profit before tax -47.8%
Adjusted EPS 13.47p (2016: 14.98p) -10.1%
Basic EPS 7.08p (2016: 13.85p) -48.9%
Dividend per share 6.69p (2016: 6.60p) +1.4%
Net debt £25.1m (2016: £20.6m) +21.8%

CURRENT TRADING
Trading in the current year has largely been in line with the Group's expectations. As has been widely reported, the key Repair and Maintenance market remains challenging, albeit the Improvement market seems less subdued. Although a smaller element of the Group's revenue, the new build market remains positive. The precise impact to the Group of the disposal by SIG of its plastic distribution business to a competitor of the Group is becoming clear.

Despite this backdrop; the Group expects to make further progress with its strategy focussed on operational improvement, broadening the product portfolio, selective acquisitions, cross-selling and market share growth in key sectors, building a platform for future growth. The Group continues to have a positive view of its prospects over the medium-term.

DIVIDEND POLICY
Since the 2014 IPO, the Group will have paid £33.6 million of dividends, including the proposed 2017 final dividend. The Board has decided it is appropriate to review its dividend policy for future years. Therefore, in order to balance an attractive return to shareholders with providing flexible and efficient funding for the Group's growth and development plans, the policy will be to offer a progressive dividend that is approximately twice covered by adjusted after tax profits.

[rcturner2] 10/4/2018 09:23

Full year results out tomorrow.

[spagboll] 05/3/2018 14:56

Seems undervalued to me, I bought some more on Friday to average down. Hopefully the results will confirm although am happy with an 8% yield for the moment.

[rcturner2] 23/2/2018 13:43

A couple of mentions in this week's IC. Simon Thompson gives a reasonably positive write up, although still rates it a hold not a buy. Then Epwin also appears in the stock screen "2018 Greenblatt picks", ranked 19. In the screen of 30 stocks it has one of the best 3 month momentum (+16.6%).

[battyliveson] 19/2/2018 11:17

Seems very cheap, perhaps value shares have been out of fashion. Now that momentum shares are having a breather my best performers are epwin and scs both with a pleasant yield. Steady buying today. Hopefully see it over £1 in next few months.

B

[haywards26] 08/2/2018 21:49

Positive update.

Hopefully we are over the worst of it here and the business performance and share price will increase over the next year.

[elmfield] 08/2/2018 13:48

Wouldn’tbother If Zeus had a hand in it.

[psync] 08/2/2018 13:11

Yup. Would be nice to hear some sell-side analysis. There's a note from Zeus Capital on research-tree.com but I'm too miserly to subscribe to read it.

[this_is_me] 08/2/2018 08:11

Update is encouraging.

[steviebaby] 06/2/2018 12:27

Agree elmfield.

The pound has strengthened against the dollar, but not budged much against the euro

Raw materials coming from Europe !

[elmfield] 01/2/2018 19:06

Hmm,
Not sure that covers all the problems.

[s express] 26/1/2018 16:08

The strengthening pound will help Epwin as it reduces raw material prices. If the pound stays strong this year, then they will have a good year.

[rcturner2] 12/1/2018 08:41

Price recovery continues here.

Just oversold previously or good news on the way?

[thorpematt] 19/12/2017 20:53

Is 2018 forward projections of EPS versus divi cover safe?

Possibly, but I have it covered by about 1.5 if estimates are to be believed. Not the most certain of markets I percieve.

[haywards26] 19/12/2017 20:19

I would hope that the above should start to underpin a share price move back closer to £1. As it would indicate that the dividend is safe, and also 2017 is the worst of the exceptionals...

[psync] 19/12/2017 14:37

You missed the most important part:

Jon Bednall, Chief Executive Officer, commented:

"The disposal of the Indigo business and the associated three year supply
agreement draw a line under the Entu (UK) plc insolvency for Epwin. The
disposal is also important as part of the ongoing appraisal and actions being
taken in respect of our on-going fabrication activities.

"We remain confident in meeting market expectations for the year ending 31
December 2017."

[mattboxy] 19/12/2017 07:35

Epwin Group Plc, the low maintenance building products manufacturer, supplying businesses in the Repair, Maintenance and Improvement ("RMI"), new build and social housing sectors, announces that it has disposed of one of its subsidiaries, Indigo Products Limited to Indigo Acquisitions Limited. Disposal The disposal of Indigo Products Limited ('Indigo'), for total consideration of £1 to Indigo Acquisitions Limited, follows the insolvency of Entu (UK) Plc earlier this year. Indigo was primarily engaged in fabricating window frames for Entu (UK) plc, prior to that business entering administration. During the 10 month period to 31 October 2017, Indigo had revenues of £12.6 million and a loss before tax of £2.7 million. Gross and net assets disposed of were £1.3m and £0.2m respectively. Alongside the transaction, a new three year exclusive supply agreement for extruded plastic products has been agreed with the purchaser, the benefits of which will depend upon future order quantities.

[rcturner2] 18/12/2017 08:48

I notice that this is coming back a little bit now. I think for a company under pressure 10 times earnings is a reasonable price, so 9p to 10p would imply a share price of 90p to 100p.