A year of good progress, matching expectations
Norcros’ FY26 outcome is in-line with market forecasts despite challenging underlying conditions. Gains came from UK progress, FIBO acquisition and tight control of South African operations. Strong cash generation was a pleasing feature.Key financial metrics are revenues +10% at £393m, PBT of £40.4m slightly ahead of expectations, and net debt £8m better than anticipated at £67m. Underlying revenues were modestly ahead y-o-y in both UK/Ireland and South Africa as pricing/mix more than offset lower volumes.
FIBO (acquired in Oct ‘25) has performed as expected, supported by a strong manufacturing base. At a Group level we expect benefits to come from greater connectivity across channels, product development, and distribution.
Norcros shares at 285p have declined c. 20% since the end of February. This decline seems disproportionate given no direct impact to trading apparent from conflict in the Middle East.
Our estimates and fair value of 397p/share are unchanged.
Norcros Plc is a holding company for the Norcros Group. The Company's principal activities include development, manufacture and marketing of home consumer products in the United Kingdom and South Africa. The Company's segments include UK and South Africa. The Company has six United Kingdom businesses, including Triton Showers, Vado, Croydex, Abode, Johnson Tiles and Norcros Adhesives, and three businesses in South Africa, including Johnson Tiles South Africa, TAL and Tile Africa. The Company is focused on showers, taps, bathroom accessories, tiles and adhesives. In the United Kingdom, the Company offers a range of bathroom and kitchen products both for domestic and commercial applications. The Company offers mixer showers and accessories; tile and stone adhesives; taps, bathroom accessories and valves; bathroom furnishings; ceramic wall and floor tiles; kitchen sinks; tile adhesives, pourable floor coverings and tiling tools through its United Kingdom and South Africa business.
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