Norcros Share Discussion Threads

[loganair] 01/10/2015 11:57

In my good opinion a 'Consolidation' is all about the directors egos as they do not like to see a once 100p plus share at 20p or 10p or even 5p as it shows how badly they've been running their respective companies.

Cookson once £6.50 dropped to 30p 'consolidation' price to £3 then slowly over many, many years very slowly rose to £6, however the current £6 is only really worth 60p as the old £6.50 is worth £65 in new money. RSA and BWIN have also done the same.

Shell did it the other way round their £20 share was split to become a £4 share and very quickly rose to £6 then £8 or equivalent to £40 per original share and now look where it is today back up to the price it originally was, but each share being worth 5 times the original or £100 per share....well done Shell!

Once the companies shares have been consolidate all of a sudden a 10p share becomes a £1 share, a 20p share becomes a £2 share and naturally the overnight EPS will also increase by ten fold.

It is easies for a share to double in price from 10p to 20p than it is from £1 to £2.

[dvb99] 01/10/2015 10:34

Punters like penny shares, and institutional funds tend to invest based on market cap!
Completely pointless and costly exercise imo.

[simon templar qc] 01/10/2015 09:27

The consolidation made a marked difference!

Liquidity seems to have gone worse not better.

Punters tend to like penny shares.

[ed 123] 30/9/2015 13:31

Yes, I've experienced a few consolidations, and I haven't seen any benefit from any of them. To get the spread down it needs more participants on the order book and a greater volume of shares traded.

Fwiw, I voted in favour of this at the AGM. I know from a previous case that the cost is relatively small, so better to get it out of the way if management want to do it. Then they can get on with running the business itself.

I see Topps Qtr 4 lfl sales were up 5%. I wonder if there's been any uplift at Johnsons?

[trigger blade] 30/9/2015 12:53

It looks to me as though the spread has gone up from what used to be 0.5p to 10p,so it's effectively doubled, although I haven't tried to buy or sell, so it could be narrower.

[mctmct] 30/9/2015 09:51

The directors said:

Share consolidation
Background
The Company has a large number of ordinary shares in issue. The share consolidation is based on every ten existing ordinary shares of £0.01 each (Existing Ordinary Shares) being consolidated into an ordinary share of £0.10 (a New Ordinary Share) with the intention that, following the share consolidation, the number of shares in issue will be more appropriate for a company of Norcros’s size in the UK market. The share consolidation may also help to make the Company’s shares more attractive to investors and may result in a narrowing of the bid/offer spread, thereby improving liquidity



Which seems like an unnecessary waste of time, IMO. We shall see.

[death by donut] 30/9/2015 09:26

Now thats what i call a blue day, 800%odd . :-) lol.

[davr0s] 30/9/2015 09:10

My spreads were showing my holding as 10bagged overnight but regrettable they have now changed this !

[trigger blade] 30/9/2015 09:09

I don't think I could trade if I wanted to. My account says my shares are now worth zero, I assume they're sorting out the consolidation thingy.

[davr0s] 30/9/2015 08:38

Sorry meant 7% spread...

[davr0s] 30/9/2015 08:31

Are we alive. 7% trade post split and not a single trade...?

[davr0s] 29/9/2015 16:30

Disappointing drop on naff all volume

[rivaldo] 21/9/2015 11:59

New note today from Edison, going for 2p EPS and a 0.6p divi this year, with 2.2p EPS and a 0.65p divi next year:



Conclusion:

"Valuation: Shares heading towards a new high

FY15 results and the Croydex acquisition were well-received and, currently at
c 20p, the Norcros share price is c 11% above the level at the start of the year. The company’s growth prospects are good (our estimated three-year normalised EPS CAGR is 10%) and this could be enhanced further by the actions described above.

On a current year P/E of 9.6x and adjusted EV/EBITDA of 5.5x, we would expect
the share price to move beyond its current all-time high (24.75p in January 2014)".

[amencorner] 15/9/2015 07:59

Conversely a silly drop of 0.75p which is routine day to day with NXR is to my mind less likely when we talk in terms of a -7.5p move. I feel the daily fluctuations will be less of an effect in both directions after the consolidation.

[loganair] 14/9/2015 13:16

Ed - do not like such things as the stock will have to rise 10p to be the equivalent of just a 1p rise at the moment. NXR is more likely to rise 5p at the moment then 50p are the 'Consolidation.'

[mctmct] 14/9/2015 11:23

Thanks - I had missed it. Did they explain what the reason was?

Any idea what is behind the large trades today?

[ed 123] 14/9/2015 10:40

mctmct.

10 for 1 share consolidation approved by shareholders.

[mctmct] 14/9/2015 09:54

The Stockopedia web page for NXR says that there will be a "Reverse Split" 0n 30 September. Can anyone enlighten me on what this is?

[rivaldo] 08/9/2015 09:06

NXR are tipped in this week's Shares Mag as part of a long feature on top brands:

"Norcros (NXR) 20.7p

It may be the name of Neptune’s largest moon but Triton is almost certainly better known to UK consumers as one the country’s most recognisable marques of electric shower. What they may not realise is that it is a brand owned by listed bathroom fit-out specialist Norcros (NXR).

The company would appear to be an obvious beneficiary of the UK’s still nascent economic recovery. Meanwhile, an objective to greatly increase the proportion of revenues generated from outside the country should also help prompt a rerating as the market rewards a more geographically balanced business model.

Norcros supplies high quality showers, taps, bathroom accessories, ceramic wall and floor tiles as well as adhesive products. The group’s operations are primarily located in the UK and south Africa. In the UK, Norcros owns Triton, the market-leading shower brand, Johnson Tiles and Norcros Adhesives as well as Vado - a major manufacturer of bathroom controls including taps, mixer showers, bathroom accessories and valves.

These are exported to over 60 countries, most notably the Middle east and Africa – a judicious and accretive addition from March 2013. In south Africa, norcros operates under three brands; ceramics retailer Tile Africa; Johnson Tiles South Africa, a manufacturer of ceramic and porcelain tiles; and TAl which manufactures ceramic and building adhesives.

The bathroom fit-out specialist is up 14.5% year-to-date and while revenue growth has been muted in the first quarter, we keep faith with a proven management team implementing a sound growth strategy. despite a positive backdrop for construction, The group saw only 0.7% revenue growth in the
UK in the year to march 2015. The South African business, by contrast, saw 15.1% constant currency revenue growth but gains have been severely impacted by a weak rand.

The more recent first quarter update (22 Jul) trimmed turnover growth in that region back from 12% (constant currency) to 7.9% in sterling terms. The upshot is that first quarter revenues are up 3% (or 4.3% if you discount currency movements) and again, as per final results on 18 June, Norcros flagged a challenging UK retail environment.

On the upside, the UK trade segment was a little more encouraging with revenue growing 0.6% in the period as the group benefited from increased activity in the trade segment due to an improving housebuilding and commercial space.

The 25 June announcement of the group’s £21.9 million acquisition of Croydex – a designer, manufacturer and distributor of high quality bathroom furnishings and accessories with exposure to both the UK trade and retail segments – is exactly the kind of deal norcros should be doing in order to drive UK growth. ‘The acquisition of Croydex is a compelling fit with our strategic growth criteria, broadening the group’s product offer as well as providing a number of opportunities to drive revenue and procurement synergies,’ said chief executive nick Kelsall. (sFl)"

[simon templar qc] 23/8/2015 17:36

The higher the pe ratio the more the stocks have fallen the lower the pe ratio on better fundamentals and outlook the better they do. Building sector holding up far better than most stocks. That is part the reason NXR bucking the trend.

[2breakout] 21/8/2015 17:32

How will the weak sa rand effect these?

[gucci] 20/8/2015 16:18

blue in a sea of red

[rivaldo] 19/8/2015 11:48

Looks more like a simple rollover to me given the small difference in trade volume and both deals being at the same price. Unless there are more trades to be declared.

Good to see the market reacting well to it anyway.