reports
- Andy Hanson
Norcros (NXR LN) - Interim results - BUY
Norcros’ interim results showed steady progress in the first six months of the year despite the operating environment remaining subdued. Headline revenue was down 6.5% at £188.4m, with operating profit of £19.7m. On a L4L, ccy basis Group revenue increased 0.1% with the UK seeing positive growth of 0.9% and SA down 1.7%, both creditable performances in the circumstances. Operating margin of 10.5% was broadly flat on yoy but importantly UK adj operating margin increased 60bps to 13.6%. The statem...
Hybridan Small Cap Feast - 10 October 2024
* A corporate client of Hybridan LLP ** Potential means Intention to Float (ITF) has been announced, or it is a rumour ***Arranged by type of listing and date of announcement ****Alphabetically arranged Share prices and market capitalisations taken from the current price on the day of publication Dish of the day Admissions: None Delistings: None What’s baking in the oven? ITF announced:*** Potential** Initial Public Offerings: 30th September 2024: Applied Nutrition, the sports nutrition, health ...
- Toby Thorrington
Steering a steady course in H1'25
Norcros’ H1'25 pre-close statement infers that headline trading in Q2 was similar to Q1, leaving group revenue flat overall y-o-y for continuing businesses. On the same basis, while profitability looks to be slightly lower - which may reflect mix effects - company expectations for the full year are unchanged. While easing inflation and interest rates have been welcomed in Norcros’ primary markets, any significant pick-up in economic activity is still pending as new governments bed in in both ca...
- Toby Thorrington
Steering a steady course in H1'25
Norcros’ H1'25 pre-close statement infers that headline trading in Q2 was similar to Q1, leaving group revenue flat overall y-o-y for continuing businesses. On the same basis, while profitability looks to be slightly lower - which may reflect mix effects - company expectations for the full year are unchanged. While easing inflation and interest rates have been welcomed in Norcros’s primary markets, any significant pick-up in economic activity is still pending as new governments bed in in both ...
- Andy Hanson
Norcros (NXR LN) - Stable trading in H1-25
Norcros, a market leader in the UK bathroom and kitchen products market along with strong market positions in South Africa, has provided an encouraging trading update for H1-25. Group revenue was flat yoy (cc, L4L) and adj. EBIT is expected to be at least £19.5m, meaning Zeus’ unchanged FY25 forecasts are now 51% covered at the revenue line and 45% at the operating level. The UK division performed well, seeing marginal improvement in Q2 as revenue (cc) rose 1% yoy in H1 following a flat Q1, whil...
- Andy Hanson
Zeus Building Products Round-up - 6 September 2024
Monthly sector update August has been a quiet month for industry newsflow as companies gear up for half year announcements and markets await commentary on current trading and outlooks as we exit the summer period. On the macro data front, there has been positive movements on mortgage approvals with July seeing banks approve 62k mortgages, the highest since September 2022 as it closes in on the pre-pandemic average of c. 66k. Whilst consumer confidence was flat in August at -13, personal finance ...
- Andy Hanson
Building Products and Construction Round-Up - 7 August 2024
Collectively, the Building Products and Construction sectors had a strong performance over July, no doubt supported by positive statements made from the newly appointed Labour government, continued expansion in Construction PMI and the highly anticipated 25bp interest rate cut.
- Toby Thorrington
Norcros - Termination of coverage
Edison Investment Research is terminating coverage on AGBA (AGBA) and Norcros (NXR). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our website.
- Andy Hanson
Zeus Building Products and Construction Round-Up - 2 July 2024
As we close off the first half of 2024, economic data has provided mixed signals with signs of improvements, albeit from a low base. GDP grew 0.7% in Q1 (QoQ), however, a timelier monthly estimate for April indicated no growth due to a rise in Services being offset by a fall in Production and Construction. This slightly contradicts what Construction PMI is reporting however, which saw activity rise at fastest pace in 2 years, with the index at 54.7 (April: 53.0). Residential projects grew only m...
- VRS RESEARCH TEAM
Norcros: 1 director
A director at Norcros maiden bought 11,305 shares at 210p and the significance rating of the trade was 53/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly sho...
- Toby Thorrington
Clear progress evident, and more to come
FY24 results clearly showed that UK portfolio management is already starting to bear fruit and collaborative actions taken should support further margin progress in due course. Our fair value, other peer group metrics and strategic earnings potential all suggest a share price above current levels. Revenue and EBIT came in just above indications in the pre-close update led by a firmer outturn from UK/Ireland operations. Reported EBIT margins were 13.6% in the UK (+100bp yoy), 4.4% in South Afric...
- Andy Hanson
Audio Note: Norcros - FY24 results ahead, UK performing strongly
In this audio note, Zeus’ Andy Hanson summarises the investment case for Norcros. Norcros has reported a strong set of results for FY24 showing Group operating margin ahead of Zeus forecast at 11.0% (Zeus: 10.5%) despite revenue down 6.0% to £392.1m on a L4L constant current basis, broadly in line with Zeus’ forecast of £395.5m.
- Toby Thorrington
Norcros - Robust performance, improving outlook
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, with the company trading on an undemanding P/E rating of 6.6x. However, it is worth highlighting the scale of the opportunity on offer to Norcros, which was illustrated at the recent cap...
- Andy Hanson
- Carl Smith
Real Estate, Building Products & Merchants - Quarterly Valuation Summa...
Housing data: House prices have remained resilient over the last quarter with Halifax’s HPI showing only a -0.3% quarterly change (seasonally adjusted) to May-24 and a +1.5% annual change. House prices look to be supported by strong buyer demand as UK property transactions show sequential MoM improvements since the start of the year and currently stand at the highest levels since March last year.
- Andy Hanson
Norcros (NXR LN) - FY24 results ahead, UK performing strongly
Norcros has reported a strong set of results for FY24 showing Group operating margin ahead of Zeus forecast at 11.0% (Zeus: 10.5%) despite revenue down 6.0% to £392.1m on a L4L constant current basis, broadly in line with Zeus’ forecast of £395.5m.
- Toby Thorrington
Norcros - Vast opportunity and new targets revealed
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 med...
- Toby Thorrington
Strategy refresh targets growth accelerators
Market sentiment is rapidly re-focusing on earnings potential in an improving economic cycle. Norcros’ CMD was well-timed with this increasing willingness to consider mid-cycle earnings scenarios. Norcros is targeting accelerators to boost organic growth in core bathroom and kitchen product groups to be supplemented by M&A activity. The CMD reiterated the company’s four strategic pillars and added financial targets including organic, above market revenue growth and margin expansion. Leading mar...
- Andy Hanson
- Andy Hanson
Norcros (NXR LN) - Capital Markets Day – taking the next step
Norcros recently hosted a Capital Markets Day (CMD) signalling a change in how the business communicates with the market. In recent history it has focused on growing its share of the highly fragmented bathroom and kitchen product markets organically and through acquisition. This has resulted in a portfolio of businesses with varying degrees of capital intensity and profitability but created a Group of scale (c. £450m revenue) with strong positions in its end markets. Last week’s CMD was evidence...
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