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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.£176.6m
Last close220.00p
High / Low (52 weeks)230.0p / 165.6p
Stock market listingLN
Forecast net debt (£m)38.3
Forecast gearing ratio (%)33
SectorConstruction & Building Materials

Price performance

Relative *6.115.428.2

* % Relative to local index

Other companies in sector Show

Company news

Y/E Mar Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2017A 271.2 31.6 20.7 24.4 9.0 5.3
2018A 300.1 34.7 24.4 26.8 8.2 6.4
2019E 328.7 42.3 30.9 29.3 7.5 4.9
2020E 338.0 44.5 32.9 31.0 7.1 4.7

Last updated on 30/07/2018

Investment summary

FY19 has started well for Norcros and management expectations for full-year progress are unchanged. The maiden Q1 contribution from Merlyn has more than offset Johnson Tiles’ (JT’s) revenue reduction and other operations collectively continue to show good growth. As before, we maintain that a positive re-rating is likely.

Last updated on 30/07/2018

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. Norcros’s management has set new 2023 financial targets for the group: to attain £600m revenue with a balanced UK/overseas split and to sustain a ROCE of 15%+.

Last updated on 27/07/2018

Key management

Nick Kelsall, CEO
Shaun Smith, CFO

Company address

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