Norcros - Edison Group

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

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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

Industrials |
Update

04.07.23

Norcros — New CEO likely to pursue existing strategy

Sector

Industrials

Equity Analyst

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	(9.2)	(6.0)	(9.5)
Relative	(10.7)	(10.6)	(9.3)
52 week high/low	195.0p/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	4.5	3.0
2023A	441.0	52.3	41.5	40.89	4.2	2.9
2024E	411.7	49.3	35.3	30.00	5.7	3.1
2025E	412.0	49.8	36.5	30.92	5.6	3.1

Research

Update

Industrials

20.12.21

Norcros — Delivering progress

norcros03

Update

Industrials

18.10.21

Norcros — Sure-footed progress

Industrials

Update

Norcros — Record revenue and EBIT in FY22

Update

Industrials

19.04.21

Norcros — FY21 profitability exceeds prior year

Update

Industrials

07.04.21

Norcros — Momentum maintained

Update

Industrials

05.03.21

Norcros — Revenue rebound has accelerated in H2

Update

Industrials

21.12.20

Norcros — Resilient business performance

Update

Industrials

19.10.20

Norcros — Plenty of positives in Q2

norcros03

Update

Industrials

03.08.20

Norcros — Clear trading recovery seen

Update

Industrials

03.07.20

Norcros — Adapting to changing markets

Update

Industrials

02.04.20

Norcros — FY20 outturn affected by COVID-19

Update

Industrials

27.02.20

Norcros — Overseas challenges reduce estimates

Update

Industrials

02.12.19

Norcros — Strength in diversity

Update

Industrials

18.10.19

Norcros — Maintaining forward progress

norcros03

Update

Industrials

09.08.19

Norcros — On track for expected progress in FY20

Update

Industrials

26.04.19

Norcros — Making good organic and acquisitive progress

Update

Industrials

18.12.18

Norcros — Growing and investing

Update

Industrials

18.10.18

Norcros — Positive progress in H1

Update

Industrials

30.07.18

Norcros — Good start to the year

Update

Industrials

29.06.18

Norcros — Explicit growth aspirations

norcros03

Update

Industrials

02.01.18

Norcros — Organic and acquisitive earnings growth

Outlook

Industrials

31.08.17

Norcros — Re-rating potential

Update

Industrials

18.04.17

Norcros — Solid H2 performance

research

Industrials

12.12.16

Norcros — Update 12 December 2016

Update

Industrials

22.04.16

Norcros — Update 22 April 2016

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