Norcros (LSE: NXR)

Currency in GBP

Last close As at 25/01/2023

GBP2.12

0.50 (0.24%)

Market capitalisation

GBP189m

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.

In the UK housing market’s recovery phase from the impact of the COVID-19 pandemic, RMI has clearly been the stronger sub-sector. UK newbuild fundamentals remain favourable also. Similar trends have been seen in South Africa. The commercial sub-sectors generally remain subdued.

Latest Insights

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Sector

Industrials

Equity Analyst

Andy Murphy

Andy Murphy

Director, Financials & Industrials

Key Management

  • James Eyre

    CFO

  • Nick Kelsall

    CEO

Balance Sheet

Forecast net debt (£m)

51.4

Forecast gearing ratio (%)

22

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 16.6 20.1 (32.7)
Relative 12.3 8.7 (34.3)
52 week high/low 312.0p/165.0p

Financials

Norcros’s interims highlighted a solid H1 performance, and although we have reduced our estimates to reflect a weaker outlook into FY24, we believe that Norcros’s proven strategy remains on track, which should allow it to unlock significant market share opportunities. We also believe that its key strengths are undervalued and that most, if not all, of the legacy issues, particularly the pension deficit, have been resolved. We have reduced our valuation from 314p/sh to 252p implying c 40% upside.

Y/E Mar Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2021A 324.2 39.2 27.4 29.58 7.2 4.4
2022A 396.3 47.0 38.6 37.99 5.6 3.7
2023E 448.9 53.6 41.8 35.86 5.9 3.5
2024E 462.6 52.4 38.9 32.89 6.4 3.6

Research

Industrials

Norcros — Well placed to gain market share

Industrials

Norcros — Record revenue and EBIT in FY22

Industrials

Norcros — Delivering progress

Industrials

Norcros — Sure-footed progress

Industrials

Norcros — Momentum maintained

Thematics

Consumer

IPO apocalypse

TMT

ESG, moving beyond the box tick

Industrials

The emergence of mega-constellations

Industrials

Internet in the sky

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