Norcros (NXR)

Business description

Norcros is a leading supplier of showers, tiles, taps and related fittings and accessories for bathrooms, washrooms and other commercial environments. It has operations in the UK and South Africa, with some export activity from both countries.

Stock data

Market cap.£145.1m
Last close181.50p
High / Low (52 weeks)189.0p / 145.6p
Stock market listingLN
Forecast net debt (m)N/A
Forecast gearing ratio (%)N/A
SectorConstruction & Building Materials

Price performance

Relative *2.75.4(3.7)

* % Relative to local index

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Company news

Investment summary

Norcros announced the £60m acquisition of shower-screen specialist Merlyn on 2 November, and the transaction and associated £30m equity fund-raising both completed on 22 November. Merlyn brings strong market positions in complementary product lines that clearly enhance the UK/Ireland offer immediately, with developing export potential also. H118 results confirmed an earlier update, flagging good revenue progress in both the UK and South Africa without much help from their respective markets. Operating profit was ahead of the prior year, with a material step forward in South Africa partly offset by P&L investment in the UK, which held back its reported EBIT. The Merlyn acquisition and H1 trading performance are yet to be reflected in our estimates, which are under review.

Last updated on 13/12/2017

Y/E Mar Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 235.9 28.0 18.5 24.7 7.3 N/A
2017A 271.2 31.7 20.8 24.4 7.4 N/A
2018E 289.1 32.9 22.1 25.8 7.0 N/A
2019E 298.1 34.5 23.8 27.5 6.6 N/A

Last updated on 06/12/2017

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Industry outlook

In the UK, the residential new-build sector has rebounded well and there is impetus for this to continue. RMI spending has not recovered at the same rate. The South African economy is currently facing a number of challenges; wider distribution of wealth and an emerging middle class should benefit consumer spending over time.

Last updated on 13/12/2017

Key management

Nick Kelsall, CEO
Shaun Smith, CFO

Company address

Ladyfield House
Station Road
United Kingdom
+44 (0)1625 547 700
View website