Norcros Share Discussion Threads

[edmundshaw] 15/10/2020 16:19

I am sure Boris could come up with a simple formula... :))

[this_is_me] 15/10/2020 14:10

Defining real need would be an impossible task. Norcros cut the pay of management and directors by 20%; they didn't do that for fun. The lawyers are rubbing their hands at your suggestion.

[edmundshaw] 15/10/2020 13:00

Good question.

I really don't think it should be up to individual companies to decide whether to repay. I feel ALL companies that have received furlough money in excess of a real need should be obliged to repay some at least of the money via an ad hoc tax, if that can be managed fairly... a flat tax on all taxpayers or businesses would not be a fair adjustment. If some sort of adjustment IS made, though, it is good to know Norcros will easily cope. If not, I guess shareholders will benefit here, even while losing out as taxpayers elsewhere...

[grahamburn] 15/10/2020 12:52

edmund. Given your comment ("having furloughed employees makes it prudent to hold back dividends for H1") and their strong cashflow, will Norcros repay the furlough money as others have done? That move alone makes it morally easier to pay dividends.

[edmundshaw] 15/10/2020 12:34

@Spangle, who knows? Suitably vague/keeping their options open.

Given the debt levels, the dividend is easily affordable, but I guess the risk of another lockdown and having furloughed employees makes it prudent to hold bkac dividends for H1. No reason not to return to dividend paying subsequently though, if there is not another serious resurgence in Covid-related expense.

I am wondering if Rishi (aka the future taxpayer) can stomach another generous furlough scheme, and given the amount of fraud and probable over-use of it, he might not want the government to look naive and reckless with our money...

[rightnellie] 15/10/2020 10:38

Very strong trading in the current climate. Bought a couple of thousand more. Anyone explain what all these single figure trades of 2 or 3 or 5 etc shares is about. Is in people trying to manipulate the price higher or lower?

[spangle93] 15/10/2020 09:43

Where it says

"The Board recognises the importance of dividends but does not expect to declare an interim dividend when it publishes its results on 12 November 2020. However, the Board will consider recommending a final dividend for the full year subject to the Group's continued strong trading performance, financial position and outlook."

Do you read it as "we're being prudent for now, but the final dividend could well be a chunky bit more than 3% higher than last year's final dividend to offset the missing interim dividend"

Or only at face value

[deanowls] 15/10/2020 08:12

The fact they are down to 8m debt from 50m a couple of years ago is fantastic, of course the pension issue is still there but is being diluted with every acquisition that they make in building the company. Well run and positive going forward.

[this_is_me] 15/10/2020 08:09

£2 might be sooner than you think; the £3 it was before the shutdown might take longer.

[privileged] 15/10/2020 08:05

Yep. Really feels like it should be back to pre covid levels around £2.50 for a more sensible PE and valuation.

[robsy2] 15/10/2020 07:52

Looks pretty good to me .
This is a well run,underated company. Happy to hold. If they trade well in the second half of the year and reenstate some dividend at year end then I would be looking for 200p.

[this_is_me] 15/10/2020 07:40

Yes, it looks like things are returning to normal and the share price should be going up soon.

[tole] 15/10/2020 07:18

Nice positive updateAs a result of the strong recovery in trading and the continued focus on cost alignment and cash preservation it is expected that Group net debt will have reduced to circa GBP8.0m at the half year (2019: GBP41.1m). This is a significant reduction on the GBP36.4m reported at the year end and in leverage with Net Debt: LTM EBITDA of approximately 0.2 times compared to 0.9 times at the year end.

[robsy2] 29/9/2020 21:02

Yeah , sit tight i guess.

[bennya] 29/9/2020 19:31

Ouch, not the best day for NXR but no real volume so could be mm games. Nothing changed to the story and business still in good health so hoping for a nice recovery here

[edmundshaw] 25/8/2020 22:39

136? Bloody hell, you did well! :)

[tole] 25/8/2020 16:46

Back in. Had a couple small orders filled in the after market auction at 136.

[robsy2] 25/8/2020 11:31

Patience i suppose? More upside than downside from here but we need positive news.

[edmundshaw] 25/8/2020 11:10

Not sure why this is so weak lately.

South Africa COVID cases declining, and cases are now down by a factor of 4 since July 19th, and deaths are on a downward path there and projected to continue so. I expect business is ticking along OK both in the UK and S.Africa.

From the AGM statement ion 30th July:

Trading continues to gather momentum as the COVID-19 lockdowns have gradually been lifted, with year to date revenue for the 16 weeks to 26 July 2020 at 65% of the same period last year on a reported basis and 68% on a constant currency basis.

It is pleasing to report that Group activity levels have continued to increase since the start of the financial year with revenue in June at 90% of June last year and July currently running at 108% of the same period last year both on a constant currency basis.

etc...

[1nf3rn0] 13/8/2020 09:48

Topps up 20% today on today's trading update. Norcros lagging behind, but you'd expect their UK business to be experiencing similar uplift.

[spangle93] 07/8/2020 18:44

Edison research issued this week

[1nf3rn0] 31/7/2020 10:29

Couple of previously rented properties on my road - one recently sold and is being completely gutted, new kitchen, bathroom(s). The other currently for sale.Similar pattern around the country with plenty of buy to let landlords cashing in. I've got 2 relatives in the process of selling flats too (one in Brighton, one in the north west). And while BTL'ers tend to spend the minimum on maintaining their properties a new homeowner will likely renovate.

[edmundshaw] 30/7/2020 08:42

People are doing up homes all over the place in my neighbourhood. I am thinking of doing stuff to mine too! S.Africa got a harder hit but also seems recovering well now! Great update!

Housing still needs to be built, too, so the B2B side should take off in due course.

[spangle93] 30/7/2020 08:21

Very pleasing update indeed. Well done to management for lining up the rebound well.