Norcros is a leading supplier of showers, enclosures and trays, bathroom wall panels, 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.
Industrials |
Update
Industrials |
Update
Industrials |
Flash note
Industrials |
Flash note
James Eyre
CFO
Thomas Willcocks
CEO
Forecast net debt (£m)
27.3
Forecast gearing ratio (%)
12
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 1.8 | 24.7 | 26.1 |
Relative | 3.1 | 20.4 | 13.9 |
52 week high/low | 232.0p/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. 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 | 5.5 | 3.8 |
2024A | 392.1 | 47.5 | 35.9 | 33.51 | 6.7 | 4.2 |
2025E | 364.7 | 49.8 | 36.5 | 31.53 | 7.1 | 4.0 |
2026E | 369.4 | 50.4 | 37.7 | 32.49 | 6.9 | 4.0 |