Edison Investment Research is terminating coverage on Norcros (NXR). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant.
Industrials |
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Industrials |
Update
Industrials |
Flash note
Industrials |
Flash note
Forecast net debt (£m)
27.3
Forecast gearing ratio (%)
12
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 14.6 | 35.2 | 48.0 |
Relative | 13.4 | 28.5 | 33.9 |
52 week high/low | 238.0p/135.5p |
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 | 5.8 | 4.0 |
2024A | 392.1 | 47.5 | 35.9 | 33.51 | 7.0 | 4.4 |
2025E | 364.7 | 49.8 | 36.5 | 31.53 | 7.5 | 4.2 |
2026E | 369.4 | 50.4 | 37.7 | 32.49 | 7.3 | 4.2 |