Norcros (LSE: NXR)

Last close As at 15/06/2024

GBP2.06

−1.00 (−0.48%)

Market capitalisation

GBP186m

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 — Robust performance, improving outlook

Industrials | Update

Norcros — Vast opportunity and new targets revealed

Industrials | Flash note

Norcros — Sale of Johnson Tiles UK agreed

Industrials | Flash note

Norcros — FY24 trading in line with expectations

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)

27.3

Forecast gearing ratio (%)

12

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (4.6) 9.5 14.7
Relative (2.4) 3.4 5.9
52 week high/low 231.0p/135.5p

Financials

Norcros’s FY24 results highlight its resilience in the face of tough markets, but we continue to believe that the outlook is improving in both of its core markets, the UK and South Africa. Despite the improving outlook we have maintained our revenue and profit forecasts and 251p/share valuation post the results, with the company trading on an undemanding P/E rating of 6.6x. However, it is worth highlighting the scale of the opportunity on offer to Norcros, which was illustrated at the recent capital markets day.

Y/E Mar Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2023A 441.0 52.3 41.5 40.89 5.0 3.5
2024A 392.1 47.5 35.9 33.51 6.1 3.9
2025E 364.7 49.8 36.5 31.53 6.5 3.7
2026E 369.4 50.4 37.7 32.49 6.3 3.6

Update

Industrials

Norcros — Record revenue and EBIT in FY22

Update

Industrials

Norcros — Delivering progress

Update

Industrials

Norcros — Sure-footed progress

Update

Industrials

Norcros — FY21 profitability exceeds prior year

Update

Industrials

Norcros — Momentum maintained

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Update

Industrials

Norcros — Revenue rebound has accelerated in H2

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Industrials

Norcros — Resilient business performance

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Industrials

Norcros — Plenty of positives in Q2

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Industrials

Norcros — Clear trading recovery seen

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Industrials

Norcros — Adapting to changing markets

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Industrials

Norcros — FY20 outturn affected by COVID-19

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Update

Industrials

Norcros — Overseas challenges reduce estimates

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Industrials

Norcros — Strength in diversity

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Industrials

Norcros — Maintaining forward progress

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Industrials

Norcros — On track for expected progress in FY20

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Industrials

Norcros — Making good organic and acquisitive progress

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Industrials

Norcros — Growing and investing

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Update

Industrials

Norcros — Positive progress in H1

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Industrials

Norcros — Good start to the year

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Industrials

Norcros — Explicit growth aspirations

Update

Industrials

Norcros — Organic and acquisitive earnings growth

Outlook

Industrials

Norcros — Re-rating potential

Update

Industrials

Norcros — Solid H2 performance

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research

Industrials

Norcros — Update 12 December 2016

Update

Industrials

Norcros — Update 22 April 2016