Weaker demand for home improvement products put pressure on sales for building materials' supplier Epwin (EPWN) last year. Chief executive Jon Bednall blames poor consumer confidence and lack of real wage growth, which have deterred people from purchasing the "big ticket items" that Epwin sells. Sales for the group's fabrication and distribution business, which produces products such as window frames, fell 6 per cent to £109m. However, this was partially offset by a stronger performance in extrusion and moulding - together with cost saving initiatives - which fed through into a 10 per cent increase in underlying operating profit to £20.1m.
Strong sales of rainwater and cellular profile products drove a 3 per cent increase in revenue for the extrusion and moulding business. However, window profile systems sales were flat, as Epwin plans the launch of its new Optima profile system this year. Management is keen to expand the group's product range through acquisition, which will produce more cross-selling opportunities. Last year wood plastic composite manufacturer Ecodek and moulded glass reinforced plastic supplier Stormking were brought into the fold.
Analysts at Cantor Fitzgerald expect adjusted pre-tax profit of £25.3m this year, giving EPS of 13.6p (from £19.6 and 11.9p in 2015).
EPWIN (EPWN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 133p | MARKET VALUE: | £188m | |
| TOUCH: | 132-137p | 12-MONTH HIGH: | 155p | LOW: 96p |
| DIVIDEND YIELD: | 4.8% | PE RATIO: | 12 | |
| NET ASSET VALUE: | 57p* | NET DEBT: | 18% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012** | 294 | 7.5 | 1.8 | na |
| 2013** | 264 | 7.7 | 1.7 | na |
| 2014 | 260 | 18.6 | 11.8 | 4.24 |
| 2015 | 256 | 18.6 | 11.3 | 6.37 |
| % change | -1 | - | -4 | +50 |
Ex-div: 12 May Payment: 6 Jun *Includes intangible assets of £58m, or 41p a share **Pre-IPO figures | ||||
