Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on EPWIN GROUP PLC. We currently have 28 research reports from 4 professional analysts.
|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|
|13Jan17 16:45||RNS||Issue of Equity|
|23Dec16 11:40||RNS||Appointment of Joint Broker|
|16Sep16 15:44||RNS||Holding(s) in Company|
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Research reports on
EPWIN GROUP PLC
EPWIN GROUP PLC
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.
FY16 in line with expectations, delivering c.19% earnings growth
01 Feb 17
Epwin’s year-end trading update states that results are in line with expectations which we take to be in line with consensus PBT forecasts of £24.4m, marginally above our £24.3m estimate. We would highlight that forecasts increased at the time of interim results (14th September) on the back of the acquisition of National Plastics. That FY results are in line with consensus expectations is reassuring, particularly as we have seen several high profile profit warnings from the sector on the back of cost input pressures and the RMI market remaining moribund. We leave FY17 and FY18 forecasts unchanged following today’s statement. Since listing (July 2014), Epwin has executed on its stated strategy of growing the business through acquisition, maintaining a progressive dividend policy and driving through efficiencies in the business. Despite executing in a difficult market the valuation looks anomalous, with the FY17 PER multiple of 6.7x almost at the same level as the prospective yield of 6.6%.
Panmure Morning Note 01-02-2017
01 Feb 17
Epwin, the low maintenance building products manufacturer, has issued a trading “in-line” pre close update. Operational improvements and acquisitions are helping margins. Consequently, we anticipate PBT increases from £19.6m in FY15 to £24.4m in FY16. That said, the biggest takeaway from the pre-close is on-going cash generation. We estimate cash flow has averaged in excess of£15m (FY14-FY16E). Despite this performance, the business is trading on double digit free cash flow yield.
N+1 Singer - T. Clarke - Strong conclusion to FY16, record order book
28 Mar 17
After significant upgrades at the time of the full year update (PBT forecast +43% FY16; +14% FY17), today’s results are c.4% ahead of our expectations at the PBT level and show strong growth on the prior year (PBT +48%). All regions achieved positive growth in revenue. The outlook statement refers to a still growing order book (£350m at the end of February vs. £330m at the year end) and the strength of recent trading, with London & the South East and Scotland said to be particularly positive. The Group has reiterated its ambitions to improve margins, but we have not incorporated this into our forecasts at this stage. We have nudged up our FY’17 forecasts (PBT +5%) and introduced FY’18 forecasts that imply 2% PBT growth. Despite the well justified bounce in the share price, the shares still trade at a significant discount to the peer group (7.6x FY17 PE, 4% yield).
N+1 Singer - Severfield - Strong H2 drives upgrades; CEO temporarily steps down due to ill health
28 Mar 17
Severfield’s trading update highlights that trading during H2 was strong and the Group now expects results to be ahead of expectations. Cash flow performance has been similarly strong with net funds at the year end also expected to be ahead of expectations. The strong performance was driven by both a better than expected revenue performance and better than expected growth in the operating margin. We expect to increase our FY16 PBT forecasts by c.9% to around £19.5m. In addition, we are disappointed to see that Ian Lawson (CEO) has taken a temporary leave of absence due to physical ill health. John Dodds (non-executive Chairman) will step up to Executive Chairman on an interim basis and Alan Dunsmore (FD) has agreed to assume the role of CEO on a similar basis. This should ensure the continuity of the business whilst Ian is recovering. The outlook for Sevefield remains positive and the Group has reiterated its medium term target to double PBT from £13.2m in FY16 by FY20. We remain positive on Severfield (one of our best ideas for 2017) and continue to see clear potential for it to outperform its medium term targets.
N+1 Singer - Morning Song 22-03-2017
22 Mar 17
Carador Income Fund (CIFU LN) Premium rating restored, high levels of refinancing activity | Cello Group (CLL LN) Outlook getting brighter – watch Pulsar | Eckoh (ECK LN) Largest ever US secure payments win | eg solutions (EGS LN) Full year results in line | Futura Medical (FUM LN) Licensing deal for CSD500 in Portugal | Verona Pharma (VRP LN) Global agreement with QuintilesIMS to support development of RPL554 | Xaar (XAR LN) 2016 results slightly ahead, reduced visibility in 2017
28 Mar 17
ClearStar* (CLSU): Building a background for growth (CORP) | Sound Energy (SOU): TE-8 results (HOLD) | LiDCO* (LID): 2017 should be a transformative year (CORP) | Proteome Sciences* (PRM): FY 2016 in line. Moving towards breakeven (CORP) | Fulcrum (FCRM): Significant market potential, rising margins and a strong balance sheet (BUY) | Mortgage Advice Bureau (MAB1): Strong and growing intellectual property (BUY) | 7digital* (7DIG): Open offer result (CORP)