Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on EPWIN GROUP PLC. We currently have 32 research reports from 4 professional analysts.
|21Apr17 16:08||RNS||Annual Report and Accounts 2016 and Notice of AGM|
|06Apr17 07:00||RNS||Final Results|
|05Apr17 11:42||RNS||Holding(s) in Company|
|14Mar17 16:03||RNS||Issue of Equity|
|21Feb17 11:17||RNS||Issue of Equity|
|13Feb17 08:45||RNS||Holding(s) in Company|
|01Feb17 07:00||RNS||Trading Statement|
Frequency of research reports
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EPWIN GROUP PLC
EPWIN GROUP PLC
Panmure Morning Note 13-04-2017
13 Apr 17
Epwin, the low maintenance building products manufacturer, is a real cash machine. Last week’s preliminary results showed free cash flow generation accelerating. FCF (i.e. cash flow after working cap, tax and maintenance capex) was £20.5m in FY16 up from £15.9m in FY15. This generation clearly underpins the dividend. Therefore, the >6% yield can, in our view, be regarded as very safe. Moreover, the under-leveraged balance sheet provides ample firepower to make further acquisitions. We keep Epwin as a conviction Buy for this quarter with a 185p target price.
FY16 in line; small cuts to FY17 and FY18
06 Apr 17
Revenue of £293.2m (FY15: £256.0m) was 14.5% ahead yoy and in line with ZC estimate of £298.7m. Adj profit before tax of £24.6m was also in line with estimates and showed c. 26% growth yoy leading to a 31% increase in earnings. The positive performance in FY16 has been driven by the acquisitions of Ecodek (Oct 2015), Stormking (Dec 2015) and National Plastics (June 2016) as well as good organic growth from the Extrusion and Moulding and Distribution parts of the business. Solid growth in these areas and operating efficiencies drove an 80bp improvement in EBITA margin to 8.7%. The only area that did not outperform the RMI market was Fabrication that continues to face operational issues and a tough end market. Despite the good performance in FY16 we lower FY17 and FY18 PBT by c.5% due to challenging end markets and cost input pressures. The current rating of 7.5x is discounting further cuts which we believe are unlikely. We believe the yield of 6.3% is attractive and well covered by both earnings and cash. At c.44% we believe the discount to the sector is unwarranted for a company that has executed ahead of its stated intentions over the last three years.
06 Apr 17
Epwin, the low maintenance building products manufacturer, is a real cash machine. Preliminary results shows free cash flow generation is accelerating. FCF (i.e. cash flow after working cap, tax and maintenance capex) was £20.5m in FY16 up from £15.9m in FY15. This generation clearly underpins the dividend. Therefore, the >6% yield must be regarded as very safe. Moreover, the under-leveraged balance sheet provides ample firepower to make further acquisitions.
Time to go over weight
24 Feb 17
We believe equity investors are taking an unnecessarily cautious stance on the construction sector. Forward looking indicators (e.g. consumer confidence, construction PMIs and housing starts) point to a stable market and recent sales LFL are particularly encouraging (e.g. Marshalls). Near term margins may suffer temporary distortions as inflationary pressures build. However, history has shown that modest input cost inflation is actually a positive for earnings growth in the sector. Therefore, as we move into 2018, margin trends are likely to surprise on the upside.
Meeting FY16 expectations
07 Feb 17
Year-end commentary included an in-line trading update for FY16. Epwin has progressed in a number of different areas in the year, not least the roll-out of a new window system. FY17 will also have its challenges but we believe there is resilience in the Epwin model and the current rating offers investors scope for good capital growth alongside strong income returns.
The tide is turning
20 Apr 17
Any investor worth their salt knows it is impossible to precisely call a bottom in a particular stock. For Gattaca, though, we believe this moment has now passed given the compelling valuation (6.9x EV/EBIT vs 9.8x sector average), attractive 9.8% unlevered cashflow yield and constructive secular trends supporting its specialist markets. Sure, Net Fee Income (NFI) like-for-likes (LFL) have fallen of late, yet equally there are now early indications that organic growth may soon turn positive.
19 Apr 17
We take a look at the supply and demand dynamics of the world’s largest diamonds. Less than 200 very large (>200 carat) gem quality diamonds have ever been found, yet 23 of these have been found in the past three years. This dramatic increase is being driven by a combination of the rapid increase in the number of billionaires and hence price and demand, combined with technological developments that have improved large diamond recovery and a certain amount of geological good luck.
Small Cap Breakfast
19 Apr 17
Global Ports Holding—Intention to float on Standard List. International cruise ports operator. Seeking $250m raise including $75m primary offer. Dorcaster—Schedule One Update. Admission now expected 3 May. RTO of Escape Hunt raising £14m at 135p Verditek— Intention to float on AIM. On Admission, the Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Raising £3.5m. Admission in May. Eddie Stobart Logistics— Schedule 1. Admission expected 25 April but capital raising details TBC. ADES International Holding— Intends to join the Standard List in May raising up to $170m plus a vendor sale. Provider of offshore and onshore oil and gas drilling and production services in the Middle East and Africa. Admission expected in May. Tufton Oceanic Assets– Offer extended to 9 May to enable investors to complete further due diligence.
19 Apr 17
Lombard Risk Management* (LRM): Beats demanding growth and profit forecasts (CORP) | Frontier Developments* (FDEV): Steaming ahead (CORP) | Tax Systems* (TAX): Right place, right time (CORP) | Acal (ACL): Stronger H2 and brighter outlook (BUY) | Fenner (FENR): Interim results signal upgrades (BUY) | Minds + Machines* (MMX): US and Europe domain sales (CORP)