Norcros (LSE: NXR)

Currency in GBP

Last close As at 30/03/2023

GBP1.86

−0.50 (−0.27%)

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.

In the UK housing market’s recovery phase from the impact of the COVID-19 pandemic, repair, maintenance and improvement 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.

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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 (7.3) 3.1 (31.3)
Relative (3.0) 2.8 (29.8)
52 week high/low 266.0p/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 reduced our valuation from 314p per share to 252p implying c 20% upside, but acknowledge there is upside to estimates from a market recovery when it materialises.

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 6.3 3.8
2022A 396.3 47.0 38.6 37.99 4.9 3.2
2023E 448.9 53.6 41.8 35.86 5.2 3.0
2024E 462.6 52.4 38.9 32.89 5.6 3.2

Research

Industrials

Norcros — Resilient business performance

Industrials

Norcros — Plenty of positives in Q2

Industrials

Norcros — Clear trading recovery seen

Industrials

Norcros — Adapting to changing markets

Industrials

Norcros — FY20 outturn affected by COVID-19

Industrials

Norcros — Strength in diversity

Industrials

Norcros — Maintaining forward progress

Industrials

Norcros — Growing and investing

Industrials

Norcros — Positive progress in H1

Industrials

Norcros — Good start to the year

Industrials

Norcros — Explicit growth aspirations

Industrials

Norcros — Re-rating potential

Industrials

Norcros — Solid H2 performance

Industrials

Norcros — Update 12 December 2016

Industrials

Norcros — Update 22 April 2016

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