Norcros Share Discussion Threads

[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.

[davr0s] 19/8/2015 11:20

Two big sells followed by tick up - hopefully a seller clearing out ?

[rivaldo] 11/8/2015 07:37

NXR are featured as one of 5 mid and small cap stock ideas in Redmayne Bentley's new August newsletter out yesterday:

EPIC: NXR Sector: Construction & Materials Yield: 2.8% P/E Ratio: 8.16 Price: 20 52 Week High/Low: 22.5/14.88

"Norcros is involved in supplying home consumer products such as showers and bathroom accessories. The group has operations in the UK and South Africa. Shares have witnessed some momentum recently, climbing to an annual high of 22.5p in mid-July. The group had been struggling for a while with its South African business, however, there are signs now that conditions are improving.

The group confirmed in July that trading in its first quarter had been in line with expectations, with group revenue up three per cent and South African revenue increasing by 7.9 per cent. Chief executive, Nick Kelsall stated: “the board remains confident that the group will continue to make progress in line with market expectations for the current year". At the end of June, Numis had a 30p price target on the group with a ‘buy’ recommendation."

[trigger blade] 06/8/2015 23:16

Is it compulsory to include material or derivatives in posts about NXR today?

If so, I have nothing material to add :-)

[rivaldo] 06/8/2015 13:47

The basic salaries are not too bad imo for a £125m m/cap company. The packages are bumped up by the bonuses and long-term incentives and are toppy. But if the company continues to do well, including turning around retail, and makes further transformational acquisitions, then the share price will be materially ahead of where it is now. In which case the long-term incentives when they crystallise will be well worth it.

Certainly there's no comparison AFAICS to the likes of VLK. Of more concern to me is Kelsall's share sale in July. He still has a large stake of 8m shares in the company, so I'm prepared to give the benefit of the doubt. For the moment.

[norbert colon] 06/8/2015 11:48

Riv. I will declare my position and state that I have recently sold my (small) holding bought at 15p as I was materially put off by the 17 page remuneration report and big packages being taken by the CEO and FD. I would welcome comments on this. This is not to say the company wont do well but for me personally I felt very uncomfortable with their apparent greed given what is also going on at VLK etc.

[rivaldo] 06/8/2015 11:07

Good news - £25k is a material sum and a decent vote of confidence from the Chairman, adding another 10% to his stake.

[ali47fish] 06/8/2015 10:30

chairman buys- is this significant?

[cockneyrebel] 31/7/2015 14:19

Steepening up-trend on the chart here imo:


free stock charts from uk.advfn.com


That large volume might be the overhang clearing perhaps.

All imo

CR

[rivaldo] 31/7/2015 13:36

Latest forecasts from Sanlam Securities:

- this year : 2.3p EPS, 0.6p dividend
- next year : 2.5p EPS, 0.7p dividend

[sleepy] 30/7/2015 22:42

Skills mix and imagination in the boardroom! This lot won't even breakdown profitability between the shower and the tile divisions. Wonder why not?

[driver7] 30/7/2015 18:05

Maybe. I've run a number of manufacturing businesses, both mature and young, and I'm a keen personal investor. Apart from the strategic direction/strengths of any company the key is skills mix and imagination in the boardroom.

[sleepy] 30/7/2015 16:20

driver7 - sounds like you know what you are talking about

[brando69] 29/7/2015 20:07

though those director dealings today don't account for the massive volume... +16 million...

[driver7] 29/7/2015 20:00

Norcros is tightly managed and doesn't make too many mistakes but I'm afraid top management is over-loaded with finance people. More commercial/entrepreneurial input is required if this stock is ever going to break out.

[rivaldo] 24/7/2015 08:43

Cheers dave - 30p would do me fine.