Norcros (LSE: NXR)

Last close As at 22/02/2024

GBP1.79

−4.00 (−2.19%)

Market capitalisation

GBP160m

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

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Industrials | Update

Norcros — UK margins up materially, South Africa stabilising

Industrials | Update

Norcros — Strong anchors weather the storms

Industrials | Update

Norcros — New CEO likely to pursue existing strategy

Industrials | Update

Norcros — In-line update highlights undervalued entity

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 (5.54) 3.17 (12.68)
Relative (7.81) 0.48 (9.14)
52 week high/low 210.0p/135.5p

Financials

Norcros’s H124 total revenue fell 8.3% on a reported basis, but declined only 4.1% on a constant currency basis, reflecting tough UK market conditions and power outages in South Africa. Underlying operating profit declined just 2.7%. The company’s market leading businesses, brands and superior service offering allowed it to unlock market share opportunities that offset weaker markets. We continue to believe Norcros’s key strengths are undervalued and that most, if not all, of the legacy issues, particularly the pension deficit, have been resolved. We retain our estimates and value Norcros at 246p, implying c 25% 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 4.7 3.1
2023A 441.0 52.3 41.5 40.89 4.4 3.0
2024E 411.7 49.3 35.3 30.00 6.0 3.2
2025E 412.0 49.8 36.5 30.92 5.8 3.2

Update

Industrials

Norcros — Momentum maintained

Update

Industrials

Norcros — Revenue rebound has accelerated in H2

Update

Industrials

Norcros — Resilient business performance

Update

Industrials

Norcros — Plenty of positives in Q2

Update

Industrials

Norcros — Clear trading recovery seen

norcros03

Update

Industrials

Norcros — Adapting to changing markets

Update

Industrials

Norcros — FY20 outturn affected by COVID-19

Update

Industrials

Norcros — Overseas challenges reduce estimates

Update

Industrials

Norcros — Strength in diversity

Update

Industrials

Norcros — Maintaining forward progress

Update

Industrials

Norcros — On track for expected progress in FY20

norcros03

Update

Industrials

Norcros — Making good organic and acquisitive progress

Update

Industrials

Norcros — Growing and investing

Update

Industrials

Norcros — Positive progress in H1

Update

Industrials

Norcros — Good start to the year

Update

Industrials

Norcros — Explicit growth aspirations

Update

Industrials

Norcros — Organic and acquisitive earnings growth

norcros03

Outlook

Industrials

Norcros — Re-rating potential

Update

Industrials

Norcros — Solid H2 performance

research

Industrials

Norcros — Update 12 December 2016

Update

Industrials

Norcros — Update 22 April 2016