Norcros Share Discussion Threads

[s34icknote] 12/6/2023 12:05

36p earnings if they match first half Revenues ahead 10 percent at record levels . On a Pe of 5 ! May be less of over 36p Good div Deserves at least Pe. If ten with proven track record !!!

[s34icknote] 08/6/2023 16:49

Results soon Would expect some interest soonAdvfn failing to keep up with share price ! Lol

[edmundshaw] 25/5/2023 23:30

Seems so undervalued. I believe the sizeable earnings enhancing acquisition of Grant Westfield in May 2022 has still not been properly factored in here.

Even without that acquisition and recent likely earnings-enhancing inflation, the share price was well over £3 two years ago. Not long to wait for Full year results on June 15th; unless something very untoward pops up, this share should do very nicely...

[basem1] 25/5/2023 15:52

Nice recovery I am balls deep in these Big volume day today

[deanowls] 29/4/2023 06:08

I prefer Tina

[tole] 28/4/2023 20:15

Thanks - never knew they got blocked as they show up and work in the iOS app. But you are correct as they are blocked on main site.

[pj84] 17/4/2023 23:01

Tole if you capitalise some of the letters in https the hyperlink won't be blocked by ADVFN's spam filter.

[tole] 17/4/2023 06:36

https://citywire.com/funds-insider/news/expert-view-travis-perkins-foresight-synthomer-norcros-and-devolver/Resilient' Norcros undervalued, says Shore CapitalA 'reassuring' update from bathroom and kitchen supplier Norcros (NXR) highlights its 'undervaluation', says Shore Capital.Analyst Tom Fraine retained his 'buy' recommendation and 'fair value' target price of 400p on the stock, which was trading up 3.3%, or 5.9p, at 182p.An update from the group revealed that it expected full-year targets to be hit and Fraine said the current 4.9 times full-year 2023 price/earnings ratio 'fails to recognise Norcros' strong operating performance, including material market share gains over recent years'.'The company has consistently delivered underlying return on capital employed ahead of its 15% target...We anticipate that Norcros' 5% dividend yield should be more than twice covered by free cashflow,' he said.'Norcros' resilience during difficult market conditions demonstrates, along with its market-leading positions... that the risk profile of the business is considerably lower than the current rating implies.'

[jeff h] 15/4/2023 16:14

Can recall Norcros owning Hygena many moons ago.

[pj84] 15/4/2023 12:39

Didn't know that and it looks like the design of the Jensen 541R 1957-60 may have influenced the more famous Jaguar e-type 1961-74.

[charlie] 15/4/2023 11:15

Trivia:
Norcros owned British sports car manufacturer Jensen Motors between 1959 and 1968.

This prompted me to check Companies House. The current plc only dates from 1999 (when the previously quoted Norcros was taken private). But there are several much older subsidiaries. E.g. the Middle East operations (closed a couple of years ago) were being run from Norcros Industry (International) Ltd, registered in 1936.

[pj84] 14/4/2023 14:16

Valuation: 252p/share implies c 40% upside

Norcros is trading at the low end of its long-term forward P/E range on 4.7x, suggesting that a lot of bad news is priced in. In fact, the stock has only traded materially below the current rating for a brief period in early 2020 during the COVID-19 pandemic, and again recently. We maintain our existing forecasts and retain our 252p/share valuation based on the average of our P/E-based model of 253p and our dividend discount model, which implies a value of 250p/share. Our valuation implies c 40% upside.

[tole] 14/4/2023 09:28

https://www.edisongroup.com/research/in-line-update-highlights-undervalued-entity/32192/

[edmundshaw] 13/4/2023 18:46

Pretty much why I added to my holding this morning...

[kalai1] 13/4/2023 14:12

Norcros plc issued a trading update for the year ended 31 March 2023 this morning. Group revenue is expected to be approximately £440 million up 11.3% on a reported basis, underlying operating profit is expected to be at a record level and in line with current market expectations of around £45.9 million. Both UK and South African businesses continue to perform well. The Group remains in a strong financial position with net debt at 31 March 2023 expected to be circa £50 million. The outlook also appears healthy despite the fragile macro environment with management expecting to deliver further market share growth in the year ahead. Valuation also now looks very attractive, forward PE ratio at just 5.2x ranks NXR top 1 out of 29 names in the Homebuilding and Construction Supplies sector. PS ratio at 0.38x is top quartile. All that is missing from the investment case is some near term share price momentum following an 18-month correction, but with a dividend yield over 5% NXR is already worth owning. BUY...

...from WealthOracle

[edmundshaw] 13/4/2023 08:42

And there it is.

Satisfactory statement and good earnings, though I was hopeful of Grant Westfield being a bit more accretive. Still, at the current price this is an absolute bargain!

[tole] 12/4/2023 08:55

Trading update perhaps due tomorrow since last two years have been released on a thursday.

[kipper7] 05/3/2023 09:23

How big a part of the overall business was this?

[xxx] 05/3/2023 02:36

Unfortunate for employees.
What happens when energy prices return to normal after the Ukraine war is over ?


Bearing in mind the recent substantial investment here and the unfortunate timing of last year's substantial acquisition, together with the high price paid, I wonder if this led to the ceo's exit ...

[jeff h] 04/3/2023 11:31

Not so good news:-



Not nice to hear of people losing their jobs even if the operation was loss making.

[edmundshaw] 01/3/2023 21:34

Decent write-up; thanks for sharing it.

[jeff h] 01/3/2023 10:47

The pension membership has been falling by about 4.5% a year the last few years (2015 = 8,492 2022 = 6,002) can't be too long before a buyout takes place to remove it.

Unrest and power cuts etc in S.Africa remain a concern.


Norcros is undervalued, says SVM’s Veitch

The share price of bathroom and kitchen products supplier Norcros (NXR) fails to reflect the quality of the business, says SVM’s Neil Veitch.

Veitch holds the stock in his £165m SVM UK Opportunities fund, where it makes up 4.5% of assets, and in a recent update noted that the group has benefited from the ‘strong repair, maintenance and improvement market in the UK and positive longer-term trends for bathroom and plumbing products in South Africa’.

Annual sales are up 20% versus pre-pandemic levels and Norcros has gained market share at the expense of competitors.

‘The company’s decentralised operating model allowed it to react nimbly to supply chain and logistical challenges, while it had sufficient scale to ensure it could meet the demands of both existing and new customers,’ said Veitch.

He noted the ‘millstone’ pension, which despite having a net surplus has gross liabilities of £280m, greater than the group’s market cap.

‘The scheme, however, is super mature with a rapidly reducing membership. Higher interest rates should afford the group greater opportunity to investigate buyout options,’ said Veitch.

‘This will, we believe, remove something that has been a significant barrier to investment for many investors and potential acquirers.’

Despite the near-term economic uncertainty, Veitch said the ‘share price fails to reflect either the quality of Norcros’ business or its long-term growth prospects.’

‘Trading on an estimated March 2024 price/earnings of less than seven times and with a dividend yield of 5%, we believe that the stock is significantly undervalued,’ he said.

[edmundshaw] 14/2/2023 15:33

Very sorry to hear about the Chair Gary Kennedy passing. Norcros has been a great invesment for me, I am grateful for what he and the CEO (and the rest) have done here...