Norcros Share Price (NXR)

norcros plc is a group comprised of market leading businesses supplying innovative branded showers, shower enclosures and trays, taps, bathroom accessories, tiles and adhesives.

the company is pleased to invite you to an online webinar at 11.00am on tuesday 7th may, hosted by thomas will****s (ceo) and james eyre (cfo) who will present and then take audience questions. all investors are welcomed.

the presentation will cover the recent update on trading in fy24, and highlight the key messages from the 1st may capital markets event regarding the group’s business portfolio, organic growth, operational improvements, and leverage of its esg strengths.

link to register for the investor presentation here: https://www.equitydevelopment.co.uk/news-and-events/norcros-7th-may-investor-presentation

Norcros has again demonstrated great business resilience in the face of challenges in both of its primary markets, and reduced net debt. We retain our 233p/share fair value in new research note. Free access to it here:

https://www.equitydevelopment.co.uk/research/fy24-matching-up-to-our-expectations

Interesting that Perpetual Limited just purchased 9.9% of the shares - I still think undervalued here and guess this means they do too! GL all holders.

thomas will****s (ceo) and james eyre (cfo) of norcros plc hosted an investor presentation covering interim results to the 30th september 2023.

management highlighted the robust performance over the period, particularly in the uk, and the positioning of their market leading brands. the team discussed their strong balance sheet and excellent cash conversion, progress on their strategic priorities and esg as a key source of competitive advantage. management then took part in a wide-ranging q&a session with the live audience.

the full video is available below, divided into chapters for ease of viewing:

0:00:03 highlights & overview

0:04:16 financial review

0:07:40 group strategy

0:17:44 summary & outlook

0:20:28 questions & answers

link to video: https://www.equitydevelopment.co.uk/research/norcros-plc-investor-presentation-interim-results-november-2023

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: https://www.equitydevelopment.co.uk/research/overlooked-and-undervalued