Norcros Share Discussion Threads

[simon templar qc] 24/6/2015 13:46

With good cash flow pension deficit isn't that big a problem. Have they closed down any defined schemes? If they haven't done so the need to think of doing so.

[ed 123] 23/6/2015 00:16

I've been thinking the same, mesquida.

Someone has been keeping the offer side supplied with shares for a while now. Consequently, the share price has not held above 18p for 6 months or so.

If a takeover bid is to happen at all, I think (whoever) needs to make their move before the UK consumer returns to spending. Accordingly, sooner rather than later for any bid, might be advised.

(Edit: No advice intended. I see many more bid targets than turn out to be such. ;-/)

[mesquida] 22/6/2015 22:15

Previously I have always considered that nobody would be likely to bid for Norcros given the pension deficit, but today´s agreed takeover of Thorntons, coming hard on the heels of last week´s approach for Aga (both of them have pension deficits) makes me think that Norcros is no longer bid proof. And frankly, on a PER of only 8 or 9, the company is now a sitting duck for somebody.

[hastings] 18/6/2015 17:50

A few thoughts that may also be of interest.

[ed 123] 18/6/2015 16:17

No problem, Glaws2. :-)

Tax treatment of big items of capital expenditure can make overall tax payments significantly different from one year to the next.

[paulypilot] 18/6/2015 16:13

Underlying EPS vs last year is actually flat, at 2.1p, once the deferred tax credit that benefitted 2014 results is reversed out. This is specifically stated in the narrative.

P.

[ed 123] 18/6/2015 13:55

Hi Glaws2.

The underlying earnings per share, given as 2.1p (down from previous year 2.8p) is not net of tax. It is post tax.

[imranawan] 18/6/2015 13:47

Loginair, I agree with your points about the NXR share price being disappointing. I've only held it for around 9 months, and its done very little in that time. I bought into Topps and sold out shortly after they issued their interims, and am kicking myself as they have risen strongly since then. I also agree that NXR appears to be undervalued, but I can't see any share price rise in the short-term. I think the catalyst in share price would be if they made an acquisition to achieve their aim of increasing revenues to £400m.

[loganair] 18/6/2015 13:15

I agree with Paul Scott NXR is most definitely under valued.

[zoolook] 18/6/2015 12:39

Commentary by Paul Scott hxxp://www.stockopedia.com/content/small-cap-value-report-18-jun-2015-nxr-101290/

[loganair] 18/6/2015 12:33

Over the past 3 years I am disappointed at the current share price.

I used to hold Topps Tiles and sold at 56p and reinvested in NXR at 10.65p. Topps Tiles share price continued to fall to 20p and under a heavy weight of debt, there was even talk of it going under.

Since then Topps share price has risen to a little over 130p while NXR to just 18p.

[glaws2] 18/6/2015 12:31

Ed - I did and indeed looked at the bottom of the income statement which gives the underlying EPS net of tax and this reduced YoY (2014 re-stated).

[maurillac] 18/6/2015 11:41

well that was a pretty good statement imho. market lukewarm though ... as usual !
holding on here
m

[ed 123] 18/6/2015 10:50

Glaws2

Either look further up the income statement or go and talk to HMRC.

[glaws2] 18/6/2015 10:44

Overall positive results - but EPS fell year on year.

[loganair] 18/6/2015 09:51

What I like to see is Cash Flow up and debt down by nearly 50%.

[cockerhoop] 18/6/2015 09:39

They will certainly need some UK and overseas acquisitions to hit £420m rev by 2018!

Does anyone know the details of the resolution with Morrisons? Narrative suggests that property issues all resolved so has the site been transferred?

[hastings] 18/6/2015 07:59

Very solid results, positive fwd picture and signs of a swing in the retail mkt as anticipated.Nice note out from Numis Target raised to 30p.Would not be surprised to see an acquisition sooner rather than later.

[macarre] 18/6/2015 07:09

Stonking results imo.

Highlights
· Sixth consecutive year of growth
· Strong cash generation - underlying operating cash flow 12.8% higher at £22.9m
· Significant improvement in South African performance
· Good progress on legacy issues
· Net debt reduced to £14.2m from £26.9m
· Underlying ROCE at 16.3% - ahead of strategic target
· Full year dividend increased by 9.8%


Martin Towers, Chairman, commented:

"I am delighted that Norcros has recorded another year of revenue and underlying operating profit growth, a feat that the Group has now achieved for six consecutive years. I am especially pleased that we have achieved an underlying ROCE of 16.3% in the year, ahead of our strategic target of 12-15%, reflecting continued improvements in our operational performance, and the benefit of disposing of the non-core assets. I believe the Group is very well placed to build on the excellent progress achieved this year, and underpinned by our strong brands and leading market positions, I look forward to the future with optimism."

[nigelmoat] 17/6/2015 15:41

Full year results due here tomorrow.

[davr0s] 11/6/2015 18:41

This share is very hard work - done naff all for months....

[amencorner] 11/6/2015 17:29

According to Sharescope NXR closed at 17p today: my internet must have stopped playing up!

[hastings] 10/6/2015 17:10

Not the best of pics of tiles I am afraid, hopefully the read is a bit more warming.
hxxp://www.cambridge-news.co.uk/stocked-tiles/story-26674055-detail/story.html