Norcros Share Discussion Threads

[rmillaree] 17/11/2023 17:05

Hello Pugugly

I guess we will have to agree to disagree - its not to often sound companies get the chance to buy back shares at dirt cheap levels. Ok norcros has pretty much been the exception to that rule alot byut we shouldnt presume this would be the case in 18 months time. The debt is so under control here i would say if they spent even £10 mill buying back shares now - that would not even start to trouble the debt levels we have. all they would probbaly be doing is delaying repayment of that amount of debt by 9 months or so. This company has proven its ability to pay down debt every time and debt is already over £10 mil below peek levels. Heyho my opinion is just that we all have our own take on what they shoudl be doing - i would say it certainly isnt a stupid option based on decent profits they expect to be making.

[deanowls] 17/11/2023 17:03

They are and they will and have done that historically prior to buying bolt ons.

The increased sales and profit with a backdrop of reducing the weight of the pension and the difficulties within the tile market has been fantastic.

[pugugly] 17/11/2023 16:27

Buy back stupid - Should be using spare cash to reduce debt.

[rmillaree] 17/11/2023 16:00

I doubt it takes much to move the needle 10% here - certainly over on stokopedia no updates as of yet from paul scott or the others yet - albeit he has made note "cheap"next to company - they are a hard bunch to please over there at times as they have only given this an "amber rating" last 2 times the company has been looked at - perhaps if its Paul Scott updating this time he may be generous enough to give it a green mark.

perhaps the equity developments report has helped a little - company is clealry cheap so if enough peeps are slapped in theface with this fact then ......

In some resepects a lack of bad news on p/e of 5 is actually good news and the equity developmnet note confirms outlook is acceptable and debt coming down.

Personally i wish it was the comany buying back shares by the bucketload every time the price drops belopw 160p - 150-160p seems a natural bottom here even if it did overshoot below that briefly (withouty me noticing)

[edmonda] 17/11/2023 15:53

Fegger - no doubt many factors, but the link about 3 cms above your post appears to be one of them. NXR shares have been'overlooked and undervalued' far too long...

[fegger] 17/11/2023 15:35

Sudden price increase of 11% today. Does anyone know a reason for this?

[s34icknote] 16/11/2023 12:46

P E of five maintained div

[edmonda] 16/11/2023 07:58

"Overlooked and undervalued" - initiation report

Norcros has leading positions in its market segments built upon strong brands, new product development, channel diversity and supply chain strengths. It is seeking to drive further market share gains organically by intensifying group synergy benefits and through M&A activity.

H1 results saw an 8.3% reported group revenue decline (or -4.1% on a constant currency, LFL basis) was substantially driven by lower demand in South Africa while the UK was broadly flat y-o-y. EBIT came in 2.7% lower (unchanged in constant currency) reflecting a better UK outturn – being the net effect of exiting Norcros Adhesives and two additional month’s contribution from Grant Westfield (GW) – more than offsetting adverse operational gearing in South Africa.

Norcros is profitable, strongly cash generative and moderately geared at 1x EV/EVITDA. We initiate coverage with our DCF analysis suggesting a fair value midpoint of 233p / share, giving c. 50% upside potential on a rerating.

Link to initiation here:

[sharetips] 23/10/2023 14:36

Norcros featured in cityconfidential this month = www.cityconfidential,co,uk

[sharetips] 23/10/2023 14:35

In the tear to March 2023 revenue split was 67% UK and 33% SA. Of the underlying operating profit the split is 79% UK and 21% SA.
The latest trading statement implies UK revenues were 71% of total with 29% from SA.

[kipper7] 19/10/2023 17:20

Can someone tell me what share of total revenues and profits come from south africa business please?

[edmundshaw] 12/10/2023 15:20

I the current housing build slowdown, that is a pretty reasonable performance in my view. And further market share gains bodes well...

[s34icknote] 12/10/2023 08:39

Mixed bag Johnson tiles reducing 50 percent !!!Guess that's the house building side !

[s34icknote] 21/9/2023 12:05

While thing becomes more manageable

[s34icknote] 21/9/2023 12:04

If they get a decent year in before it slows they should be able to reduce debt quickly

[rmillaree] 08/9/2023 09:20

Housing market ? New builds ?
Wonder what percentage of sales equates to new builds ?


Good question s34icknote

I would say that newbuild market is probably a pretty material/decent part of their customer base - but dont know for sure.

Facts of life are they will have busy times (they have deffo had tailwinds over covid with peeps spending on houses) and they will have less busay times. Main think is this company should still be reasonably sound even if be did have a mini or full on recession. Facts are recessions come and go and make up only a very small % of the whole economic cycle. Main thing is can the company sail through and perhaps come out the other end stronger (as weaker competitors may fail). In that regar norcos strikes me as a dependable company. Would i be surprised if they have near term future downgrades here ref earnings - based on poor result update from eurocell i would say no. What is not in dispute is that everyone (ok possibly not the idiotic nimby's) wants to be building more new homes than we are doing now - so medium term i have no worries even if short term propsects are somewhat uncertain.

[s34icknote] 07/9/2023 17:28

Some big trades today ! Seller ?

[s34icknote] 21/8/2023 18:27

Housing market ? New builds ? Wonder what percentage of sales equates to new builds ?

[xxx] 16/8/2023 17:36

What is your forecast based on ?

[loganair] 14/8/2023 23:24

loganair - 01 Oct 2022 - 14:11:56 - 3428 of 3545: I can easily see NXR falling sub 100p at their lowest for this cycle.


I am still sticking with my forecast.

[xxx] 14/8/2023 17:51

It's really interesting to me that the chart here and at Mobico portend further weakness.
But in neither case do operating updates explain the price weakness.
I'm guessing there are others,but these are 2 that come to mind.

Perplexing...

[edmundshaw] 13/8/2023 19:44

Director buy, about £45k. Not a bad sign, and also now unlikely any news imminent.

[s34icknote] 11/8/2023 22:44

And look at the Pe of Vic !

[xxx] 11/8/2023 21:32

Does the relatively poor performance ofn NXR v Victoria Plumbing tell us anything...