Norcros

Overview
Price performance
Financials
Research
Thematics

Norcros is a leading supplier of showers, enclosures and trays, tiles, taps and related fittings and accessories for bathrooms, kitchens, washrooms and other commercial environments. It has operations in the UK and South Africa, with some export activity from both countries.

The UK’s new build housing market is subdued following the interest rate increases, although the repair, maintenance and improvement market has been more robust. In South Africa, demand across the board has been affected by the ongoing power disruption issues, which are likely to remain a feature.

Latest Insights

Industrials |
Flash note

25.04.24

Norcros — Sale of Johnson Tiles UK agreed

Industrials |
Flash note

12.04.24

Norcros — FY24 trading in line with expectations

Industrials |
Update

04.12.23

Norcros — UK margins up materially, South Africa stabilising

Industrials |
Update

02.08.23

Norcros — Strong anchors weather the storms

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Sector

Industrials

Equity Analyst

Andy Murphy

Director, Financials & Industrials

Key Management

James Eyre

CFO
Thomas Willcocks

CEO

Balance Sheet

Forecast net debt (£m)

Forecast gearing ratio (%)

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	(4.3)	(8.3)	(4.3)
Relative	(5.9)	(13.8)	(6.5)
52 week high/low	195.0p/135.5p

Financials

Norcros’s disposal of Johnson Tiles is the latest strategic activity taken by management to better allocate capital to fit with priorities. Last year it closed its UK adhesives operation. Norcros has a compelling investment case, where its new product development initiatives, market positioning and self-help initiatives allow it to take market share in both the UK and South Africa. Its rating is low at 6.0x FY24e P/E, which is attractive, especially when compared to its yield of 5.4% on its well-covered dividend. We retain our estimates and value the shares at 246p, implying c 30% upside.