Epwin Share Discussion Threads

[chrisb1103] 19/4/2023 18:07

Muted response to decent results imo. Maybe a chance of some progress ahead of the dividend?XD for 2.55p coming up on 11/05

[gopher] 06/4/2023 13:03

I hold and think this a stock that is bound to benefit from the Green initiatives as they point out the UK housing stock needs a refurbishment, otherwise natural gas will be difficult to displace.

[creditcrunchies] 04/4/2023 07:39

Strong trading in 2023 increased dividend the market won't like that it's too positive they're bound to pick on something negative

[rumbers2] 29/3/2023 16:14

I think i will join you, even if it is just for me to average down on the last recommendation at 78p.
Such a febrile, frenzied fear gripping the whole market it's difficult to read anything with clarity. Absolutely hate it.

[chrisb1103] 29/3/2023 16:08

This has been knocked down again. Have added today. Hoping the results next week on 4th might be a catalyst to a decent bounce?

[p1nkfish] 09/2/2023 17:17

The acquisition of the recycler for raw material and cyclical credentials was neat. Have been buying and glad to see the breakout. Some decent companies available at sensible prices at the mo. Might get knocked back but more upside than downside imho. Dyor etc & GLA.

[sphere25] 09/2/2023 16:47

Hi RichteaI can see as I type on my mobile that message was directed at me, but it's odd too, because it doesn't show like that when on desktop, so not ignoring anyone on purpose.It looks like it is breaking out. I have got lucky here. Not been able to spend time at the screen, and was just about to leave the screen to head out, and those trades hit. It was literally a case of closing browsers down and the last one was the monitor screen!Watched a few big blocks get mopped up from stale bulls recently, but it wasn't enough, so didn't say anything but these are whoppers for EPWN.The market will have a look in and note that big buyers have turned up here shortly, but I think EPWN goes to test at least that psychological £1 mark.It just isn't as bad as feared out there. That isn't being dismissive of the risk, but anchoring to an overly bearish stance isn't the way either. Trying to find the right balance can be difficult as well. The housebuilders have rallied well off the lows too and I suspect EPWN is about to follow. The trading update provided reassurance to the market.Even though it didn't move immediately (and presumably the fund managers have then had a word with management too) the update has been enough to see big buyers come in and send a bullish signal to the market.These laggards, where fund managers are still trying to find liquidity, can provide very good opportunities too.So as long as we have this muted form of downturn, the market has likely over reacted here to the downside.As I say, I can't categorically say x y and z will happen but these smaller caps do eventually follow the big ones and the chart is making a bullish move now.Just trade in line EPWN, robust and resilient will do!Rarely do a mobile message. Hopefully the formatting comes out ok!Watch it be lathered all over the place like a mess.Right. Onwards. Hopefully get more screen time soon.All imoDYOR

[richtea2517] 09/2/2023 16:04

YepBeen waiting for a break up

[sphere25] 09/2/2023 13:09

Sellers cleared here?

9.1 million exchanged here - whopping big for EPWN

If the chart breaks higher from here on those, should be bullish

All imo
DYOR

13:18 Taken a few.

There is large demand in the market here and shares look tight at these price points so it might break out higher. It looks way oversold on the fundamentals too. Trading is currently showing as more resilient than expected so the buyers are coming in size to clear the sellers who have kept the price anchored. If there is follow through here and a break higher, it should really re-rate.

[richtea2517] 06/2/2023 21:06

I like these at this priceWould like to see some momentum and then may add a few

[p1nkfish] 06/2/2023 19:53

I like the purchase of the uPVC recycler, good move.
Took a position and been adding.
Sensible management, would like to see debt reduction however.

[xamf] 17/1/2023 12:43

Bought in just below 74p. Book value close to 70p. 20% increase in net profit for first six months. Only downside for me is the increased debt since 2019. Strong historical support around these levels. PE of 7.6 and over 6% divi yield plus great looking chart.
Full year earnings release 4th April 2023 and would hope to see an increase from here towards results. A good punt imo but as ever DYOR.

[2wild] 01/12/2022 20:29

Up 3.5% today back to same price when I brought them middle of October.

[2wild] 14/10/2022 13:21

Taken a position here with a purchase at 75p, 5.67% dividend yield including recently increased interim. Balance sheet look strong and dividend twice covered by earnings. Better place than most to ride out the impending doom and gloom.

[daler1966] 14/9/2022 09:30

Decent yield

[deadly] 14/9/2022 08:59

Decent results today.

[gopher] 30/5/2022 22:24

Thanks - I can understand your caution, my approach is to stay fully invested but move up around the market. This stock looks very good value, I had it on a watchlist for a while but easy to miss a price move on further good news.

[gopher] 30/5/2022 16:55

I wonder whether anybody could enlighten me on the trading here. All buys at 84p except for the oddball small amounts but close is down 3 at 81p.Not an active stock but seems to have drifted down despite decent news flow

[18bt] 06/4/2022 09:26

Looks to have beaten forecasts and better outlook statement. No real reason to drop from highs of the Autumn.

[terminator101] 06/4/2022 07:09

Nice results for this year. Big bounce back and makes that P/E ratio look cheap now.

[km18] 17/2/2022 14:26

...from last year...

Company overview:
Epwin Group, founded in 1976, is a market leader in the low maintenance building products for Repair, Maintenance and Improvement (RMI), social housing and new build markets in the UK. The Group is designing and manufacturing products in-house, which are then sold through trusted brands. Vertically integrated, Epwin has grown both organically and through acquisitions. EPWN has two business lines- Extrusion and Moulding, and Fabrication and Distribution. Growth in demand for their services is expected to be continuous, driven by underinvestment in ageing UK housing stock, need for more thermally efficient products and more time spent at home.
Company’s 2020 revenues have been hit by the pandemic last year, but gross profit margin stayed reasonably close to 2019 levels. Gearing has reached level of above 100%, driven primarily by changes in the recognition of leases, as company is actively retiring debt over the past 5 years. Latest update by the Group states that trading during the first half of the year has been ahead of previous expectations. Revenues for H1 are 69% above 2020 figures, at £157.8m and are even outperforming 2019. The company’s debt facilities provide around £60m. The board is observing with caution the supply chain pressure from high demand and various supply issues....from WealthOracleAM

[davebowler] 20/1/2022 08:53

Zeus-
Epwin has confirmed that FY21 finished strongly with revenue materially ahead and profitability marginally ahead of consensus expectations of £12.8m. ZC estimates for PBT increase to £13.2m (prev. £12.9m) and expect the previous consensus of £12.8m to increase by c. 5%. Revenue expectations of £312.1m were materially below the c. £330m that Epwin will report. We change FY21 expectations to reflect today’s trading statement and update revenue assumptions for FY22 and FY23. However, it should be stressed that the change to outer years is preliminary and we expect to refine estimates at the time of the FY21 results. The strong cash performance is reflected across the forecast period in reduced net debt estimates with a net debt/EBITDA multiple of less than 0.5x. End market demand has been exceptionally strong, particularly in the RMI market, and when combined with price increases and bolt on acquisitions has led to a 37% increase in revenue, importantly this is up 17% on FY19. FY21 has proved to be a strong recovery year for Epwin with revenue forecasts increasing by 44% since they we re-introduced in late 2020. On FY22 estimates the shares trade on 10.7x earnings and yield 4.7% with the support of a clean balance sheet.

§ Strength of recovery through 2021 much stronger than expected: Trading performance during the year has improved with FY21 revenue growth 17% ahead of FY19. In H1 it was 13% ahead highlighting the strength of demand into the second half of the year. This has been driven by the RMI market and consumer demand. Commercial markets have been slower to recover but recent signs suggest these are getting back to pre-pandemic levels. This should prove an added stimulus during FY22. However, the business has faced extensive headwinds including Covid related costs, supply chain issues and material uplifts in demand causing raw material price inflation. This has resulted in operating margins remaining below historic norms. Over the medium term, the operational gearing a normalisation of margin will bring, could offer further material upside to earnings.

§ Changes to forecasts: FY21 estimates are updated for the information provided in today’s trading update. Revenue increases 5.7% to £330.0m (prev. £312.1m) and adj PBT increases 2% to £13.2m (prev. £12.9m). The pre IFRS 16 net debt position of £9.0m is materially better than the £13.4m forecast. The improvement flows through into forecast years and the business, all things being equal, should be net cash by FY23. Revenue estimates in FY22 are increased by 4% but are conservatively in line with FY21 actuals. This assumption will be reviewed at the time of the FY21 results. Profit estimates are also left unchanged reflecting a conservative approach as cost input pressures continue to be felt (detail on forecasts can be found on page 2). Trading has remained solid but being just two weeks of into the New Year it is difficult to extrapolate trends.

§ Valuation: Trading on 10.7x FY22 earnings, Epwin continues to offer significant value. FY22 will see normalised trading with profitability increasing 30% to £17.2m. Operating margin remains depressed and any improvement over and above the 130bps currently forecast should see earnings upgrades. The yield of 4.7% is well supported by a balance sheet that is carrying low levels of gearing, less than 0.5x net debt/EBITDA, and will be net cash in FY23

[mattboxy] 20/1/2022 07:58

Trading update The Group is pleased to report that trading remained strong through to the end of the year, with revenues for FY 2021 expected to be approximately £330m, up by 37% compared to 2020 and 17% compared to 2019. This has been driven by a combination of the ongoing strength of demand in the RMI market, price increases and recent bolt-on acquisitions. The Group has continued to successfully navigate its way through the sector-wide operational, inflationary and supply chain pressures caused by the ongoing impact of Covid-19 and heightened demand levels. Accordingly, the Group now expects to report adjusted profit before tax for FY 2021 modestly ahead of current expectations1, subject to audit. Cash generation remained strong in the second half of the year, with covenant net debt (pre-IFRS 16) as at 31 December 2021 significantly reduced to approximately £9m (2020: £18.5m; 2019: £16.4m), better than the Board's expectations. This was achieved despite the Group completing several bolt-on acquisitions during the year, totalling £5.3m, including one acquisition in the second half of the year. Year-end leverage was less than 0.5 x adjusted EBITDA. Current trading Trading in the first two weeks of 2022 has remained strong and has been in line with the Board's expectations. The Board continues to monitor the development of the Covid-19 pandemic whilst managing the impact of absences across the workforce during the early part of 2022.

[mattboxy] 15/9/2021 08:01

Looks like things are still going well