Norcros (LSE: NXR)

Last close As at 18/05/2024

GBP2.20

10.00 (4.76%)

Market capitalisation

GBP198m

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

View More

Industrials | Flash note

Norcros — Sale of Johnson Tiles UK agreed

Industrials | Flash note

Norcros — FY24 trading in line with expectations

Industrials | Update

Norcros — UK margins up materially, South Africa stabilising

Industrials | Update

Norcros — Strong anchors weather the storms

Sector

Industrials

Equity Analyst

Andy Murphy

Andy Murphy

Director, Financials & Industrials

Key Management

  • James Eyre

    CFO

  • Thomas Willcocks

    CEO

Balance Sheet

Forecast net debt (£m)

40

Forecast gearing ratio (%)

18

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 26.1 18.0 25.7
Relative 16.9 8.0 15.6
52 week high/low 220.0p/135.5p

Financials

FY24 trading underpins Norcros’s 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. We believe that Norcros’s key strengths are underappreciated and that legacy issues have been resolved. Its rating is low at 5.6x FY24e P/E, which is attractive, especially when compared to its yield of 5.7% on its well-covered dividend. We retain our estimates and value the shares at 246p, implying c 40% upside.

Y/E Mar Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2022A 396.3 47.0 38.6 37.99 5.8 3.8
2023A 441.0 52.3 41.5 40.89 5.4 3.7
2024E 411.7 49.3 35.3 30.00 7.3 4.0
2025E 412.0 49.8 36.5 30.92 7.1 3.9

Research

Update

Industrials

Norcros — Strong anchors weather the storms

Update

Industrials

Norcros — New CEO likely to pursue existing strategy

Update

Industrials

Norcros — In-line update highlights undervalued entity

Update

Industrials

Norcros — Well placed to gain market share

norcros03

Update

Industrials

Norcros — Broadening the UK bathroom product offering

Update

Industrials

Norcros — Record revenue and EBIT in FY22

Update

Industrials

Norcros — Delivering progress

Thematics

thematic

Industrials

Deutsches Eigenkapitalforum (EKF) 2023 industrials

thematic

Industrials

The long and winding road

thematic

Industrials

Quantum computing: A booming industry

thematic

Industrials

UK housebuilders

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free