Norcros Share Discussion Threads

[ali47fish] 17/11/2017 16:02

so for the poeple who have already seen this interview is the open offer a good offer-unfortunately i rang my broker and i have already missed the deadline 15 nov

[edmundshaw] 17/11/2017 09:05

Thanks Robsy. It is a good interview - although I wish Nick would smile!!

[robsy2] 17/11/2017 07:49

Here is NXR CEO Nick Kelsall talking about developments over the last 6 months and also explaining the logic of the Merlyn purchase, the Irish manufacturer of shower trays and enclosures.

I like the bit when he gives us a flavour of the opportunity, saying that ´´at the moment we sell 700,0000 showers a year´, but no shower trays or enclosures”

He adds that he is very confident about our prospects. Me too.
R2

[pj84] 16/11/2017 22:49

Deadline for mine is midday tomorrow Fri 17 with Hargreaves Lansdowne.

[edmundshaw] 16/11/2017 19:29

Depends on your broker. Halifax deadline is midnight tonight.

[grahamburn] 16/11/2017 19:29

Depends on your broker.... they seem to vary.

Mine (II formerly TD) is 11.59 tonight, but know some which have been earlier today.

[ali47fish] 16/11/2017 19:24

when is the deadline to take up thre open offer- i seem to have mislyed the broker 's letter!

[edmundshaw] 16/11/2017 16:11

Well, in my own tiny world I do not need more shares - I have enough of these as a portfolio weighting. So I have sold enough to be able to take up a bit more than the same amount on offer on the rest, thus squeezing 2.5% margin on those shares. Very small beer, but a tidy little Xmas shopping sum for 5 minutes' work; seems worth the small effort...

[edmundshaw] 16/11/2017 12:45

It can be held back for sure, it can also be an opportunity for institutions to get a meaningful stake in a good value company. How it pans out short term does not interest me a lot (though oviously I wouldn't say no to a quick rise!). Certainly, new shares can be a drag on the price, but not always (for example Phoenix whose open offer was well over-subscribe: there the share price after correction for the discounted shares went up, and never dropped anywhere near the offer price).

[grahamburn] 16/11/2017 11:55

Surely the share price is being held back due to the outstanding Open Offer. It's unlikely to move significantly until that is concluded.... don't forget there will be a massive increase in the number of shares once the takeover is concluded (28% or so).

[edmundshaw] 16/11/2017 11:51

Results were trailed in the last trading statement. Still cheap, just needs someone with deep pockets to notice it. Prospective yield now nealy 4.5% which is getting quite useful "sitting" money.

[1fox1] 16/11/2017 11:31

Great results? Yes I can see that by the way the share price hasn't moved.

[norcros] 16/11/2017 09:44

Very promising results given the challenging circumstances (higher import costs in the UK and political uncertainty in SA). NXR definitely outperforms its competitors. Management seems very competent to me. Clear focus on growth, cash generation and working capital management.

Revenue +7,2% excluding currency fluctuations, but underlying operating profit ‘only’ + 6.4%. Net profit even dropped 9.8% due to higher financial costs (fluctuation in the value of hedging instruments).

Operating cash flow before changes in working capital -3.2% due to higher one-off costs (restructuring at Johnson Tiles UK)
Free cash flow excluding changes in working capital of £ 5.4m (compared to £ 8.2m in the same period last year); decrease is entirely due to higher taxes.
Net debt decreases to £ 20.8m (compared to £ 23.2m at the end of FY17)

Pension deficit fell from £ 62.7 to £ 52.1 due to a higher discount rate.

Interim dividend + 8.3%.

[edmundshaw] 16/11/2017 08:01

Decent results today. Management don't seem concerned at a possible consumer downturn.

There again, trading conditions have been "difficult" for some time according to a lot of companies, Norcros included; it may not be getting a lot better right now, but no suggestion in the outlook statement that it is getting worse. Longer term these represent good value. Sometimes it takes years for that to be reflected in the share price though (e.g. CMS, which is finally moving north in the last few weeks after languishing for years).

[gargleblaster] 16/11/2017 07:55

Well these results look reasonable to me. At a time when retailers are suffering it is good to see a number of + signs in the highlights. Good also to see net debt and pension deficit coming down (although the latter is technical due to the change in discount rates). Let's see what the market thinks?

[1fox1] 15/11/2017 14:36

OK no problem. Since I already own a significant number of these shares I don't see a reason for taking up the offer. Indeed I have a feeling you will be able to buy them for less in the near future. To me this company has been one step forward two steps back for the last few years. Boring to say the least. The only saving grace is the decent dividend. I hold only because I'm slightly underwater at an average of 18p. Not been one of my better investments. Nearly four years of wasted money as far as I'm concerned. Simply not willing to shove more money into it. Thanks for your advice though

[sooty snipes] 15/11/2017 14:20

174p to buy today

[sg31] 15/11/2017 13:18

If you don't want to take up the open offer that's your choice. If you don't want to buy at the current price that's fine.

The fact that they can get the offer away at 173 is positive, if a company needs to offer a big discount it suggests weakness. That isn't the case here.

Nobody is trying to persuade you to do anything, if you don't like the company, price or offer walk away.

As a long term investor in Norcross I've taken up the offer, I like the divi, I like the takeover, I'm happy to wait until the value is recognised.

[1fox1] 15/11/2017 10:53

No what I meant was I could buy the shares for 173 at anytime but would have to pay dealing costs. Why bother taking up the open offer with no discount. There is no carrot so to speak

[loganair] 15/11/2017 10:45

As it is an open Offer, like with a Rights Issue there are no dealing costs.

[1fox1] 15/11/2017 10:20

Don't quite get what you mean Graham. Surely the price will be underpinned at 172p the issue price. My point is what's in it for me apart from a bit of dealing costs?

[robsy2] 15/11/2017 09:56

Thanks for your good wishes.
I see the latest acquisition as earnings enhancing, so non-dilutive in that sense.
It all fits together well to my eye.They have a decent roster of brands and a clear game plan .
A very well covered progressive 4% +divi is enough to keep me patient while I wait for the company to revalue.I am bullish!
That's the game plan.
Time will tell.
Best
R2

[grahamburn] 15/11/2017 09:10

Robsy2. Hope you've made a sensible decision, but, assuming you have only just bought in (ie after the ex-date for the Open Offer), don't forget that you'll be diluted by some 28% following its completion next week.