Norcros (LSE: NXR)

Last close As at 12/06/2024

GBP2.06

−4.00 (−1.90%)

Market capitalisation

GBP185m

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 — 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

Industrials | Update

Norcros — UK margins up materially, South Africa stabilising

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 (5.1) 9.0 16.4
Relative (2.0) 2.9 8.3
52 week high/low 231.0p/135.5p

Financials

Norcros is the UK’s leading design-led sustainable kitchen and bathroom products group. Its compelling investment case was highlighted at its May 2024 capital markets day (CMD), where its unique, asset-light, design-led model was clearly illustrated. The CMD also indicated the enormous scale of the opportunity that is available in terms of entering adjacent unaddressed markets in the UK and South Africa, as well as the potential presented by other attractive geographies. Furthermore, revised medium term targets were introduced that should further excite investors. Our profit forecasts are unchanged, but we have raised our valuation from 246p to 251p as we have rolled forward our P/E valuation and increased our FY25 dividend estimate.

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 5.4 3.6
2023A 441.0 52.3 41.5 40.89 5.0 3.5
2024E 411.7 49.3 35.3 30.00 6.9 3.7
2025E 376.7 49.9 36.5 30.93 6.7 3.7

Research

Update

Industrials

Norcros — Strong anchors weather the storms

Update

Industrials

Norcros — New CEO likely to pursue existing strategy

Update

Industrials

Norcros — In-line update highlights undervalued entity

Update

Industrials

Norcros — Well placed to gain market share

norcros03

Update

Industrials

Norcros — Broadening the UK bathroom product offering

Update

Industrials

Norcros — Record revenue and EBIT in FY22

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