Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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And code 1 at 13.31...
big trade...
Norcros is planning to grow which means the pension deficit will shrink in comparison and also additional earnings will fund it. This is a 50p share in the making. Will take a couple of years but I can see why people are buying. May be share issue at some stage to fund acquisition. I wonder if they have their eyes on TOPPS Tiles??? Just a thought but would make a good fit
And one 80k trade aswell..
21-Jun-1312:41:1716.00500,000Buy* 15.7516.0080.00kO 25-Jun-1315:49:3516.003,053Buy* 15.7516.00488.48A 25-Jun-1315:49:2416.003,053Buy* 15.7516.00488.48O 25-Jun-1315:39:4016.00175,000Buy* 15.7516.0028.00kO 25-Jun-1315:38:4516.0025,000Buy* 15.7516.004,000A 25-Jun-1315:38:4316.0025,000Buy* 15.7516.004,000A 25-Jun-1315:38:3616.0075,000Buy* 15.7516.0012.00kO 25-Jun-1315:38:3916.0025,000Buy* 15.7516.004,000A 25-Jun-1315:38:3716.0025,000Buy* 15.7516.004,000A 25-Jun-1315:38:3416.0025,000Buy* 15.7516.004,000A
All three businesses within the South African group recorded double-digit constant currency revenue growth. An overall underlying operating profit for the year of £1.0m (2012: £0.5m loss) marks the return to profit for our South African operations.
five weeks mate......not long i suppose.....
nice one. have a great time if i don't see you before you go
Ok mate of to cyprus soon recharge the batteries ready for the upturn lol........
thanks mate, will take a look. how's you ?
Worth a look here my only concern is the pension deficet they have.......
Norcros has demonstrated its ability to navigate through half a decade of tough trading and is now poised to embark upon a significant growth plan achieved through organic growth and acquisitions, such as Vado, that will complement its existing range of products. That potential isn't currently reflected in the lowly valuation, and the forecast dividend yield at 3.2 per cent isn't to be sniffed at either
It is not only the core business that benefits from improved property market sentiment. Planning consent has been obtained on a surplus property in Highgate Park, Tunstall, and a conditional sale contract has been signed with supermarket chain Morrisons. Norcros should be able to book a £2.6m profit on the deal by the end of August. There is still plenty to do, however, not least because the rotten weather so far this year and destocking by some clients has left the UK market weaker than expected in 2013. And with the pressing effects of higher energy bills, a cost reduction programme could involve 75 jobs being lost, which management reckons will result in a £1.5m exceptional charge. Profits in the year to March were also dented by a £3m charge relating to legacy leases on three remaining properties owned but not used by Norcros, although this buys the company around two years in which it hopes to sell the leases or install a tenant. And there was another £0.9m charge relating to Vado acquisition expenses. Meanwhile, a recently closed defined-benefit pension scheme, which is in deficit to the tune of £30m, is an issue.
Meanwhile, impressive organic growth has helped Norcros grow both sales and underlying profits over the past four years despite the market for showers and tiles declining by as much as 30 per cent from its peak. Norcros's strong brands, high service levels and relatively sound finances have been winning it market share and progress should become more apparent as the market troughs out. And signs that the property market may be returning to health are encouraging. Meanwhile broker Canaccord Genuity is forecasting that underlying operating margins will rise from 6.2 per cent last year to 7 per cent over the next three years. Helped by strong growth at Norcros's market-leading Johnson Tiles business, UK revenue was up 5.1 per cent last year to £122.8m, although higher energy costs and fewer high-margin shower sales meant operating profit fell 4.8 per cent to £11.9m. Outside the UK, the South African division - which accounts for almost two-fifths of sales but less than a tenth of profit - pushed constant-currency turnover ahead by 19.3 per cent, and despite a 26 per cent rise in energy costs, the division turned the previous year's operating loss of £0.5m into a profit of £1m.
Despite generating solid growth over the past four years while its core markets have been in decline and recently announced plans to double revenues over the next five years while ramping up returns, shares in Norcros (NXR), a manufacturer of shower fittings, bathroom accessories, floor tiles and glue, trade at just 0.4 times forecast sales for the current financial year and at less than eight times expected earnings. For a company with a credible growth strategy and the potential for cyclical upside, that looks far too cheap. As well as the target of doubling revenue by 2018, Norcros plans to generate around half of group turnover from outside the UK, and achieve a pre-tax return on capital employed of between 12 and 15 per cent, compared with about 9.5 per cent now. This will be achieved by bolstering organic growth with acquisitions, such as this year's purchase of Vado which operates in the middle to high end segment offering bathroom attachments both inside and outside the UK. Norcros paid £12m up front for Vado and is committed to up to £4m of performance-related payments. The acquisition looks a very good fit with the rest of the company and last year generated revenue of £25.6m and pre-tax profits of £2m.
By the end of the year this will be around 25p. Nothing mega exciting but a solid little investment with a company that has really turned the corner and pays a dividend! Yipee
Good rns and the price goes down!
Results are pending and I'm sure I saw a broker target somewhere of 50p. Could be my imagination. Anyway I certainly think Norcross is going to go places with it's recent acquisition there will be more to come. So I've bought 24,000 shares............see what happens this week
big trade....
ok thanks.
Acquisition of Eurobath International Ltd trading as Vado Norcros plc, the market leading supplier of innovative branded showers, tiles and adhesives, is pleased to announce that it has completed the acquisition of 100% of the share capital of Eurobath International Ltd trading as Vado ("Vado"), a private family owned business principally held by the Walker and Williams families for an initial cash consideration of £11.0m plus debt and debt like items assumed as part of this transaction of approximately £0.9m, and further payments of up to £4.1m in total depending upon the future financial performance of Vado. The Board expects the acquisition to be earnings enhancing immediately.
news is there? or is this just off the back of a strong ftse? anyone?
and 2.7 mill,showing az sells?.....
Its pension scheme deficit increased from £18.7m at March 31st 2012 to £22.3m at September 30th, due to a fall in the discount rate. However, this deficit represents only 6% of the total scheme which is worth £366m. Consequently, it plans to close its defined pension benefit scheme to new entrants from April next year. Net debt before prepaid finance costs at September 30th 2012 increased to £20.2m from £18.5m at March 31st 2012, but leverage still remains low at 1.1 times earnings before interest, tax, depreciation and amortisation (EBITDA). The interim dividend is up 10.7% to 0.155p a share, payable on January 8th 2013. Broker commentHouse broker Numis said: "We maintain our view that Norcros looks too cheap relative to the merchanting companies which are driven by the same end-user market but trade on valuation ratings almost double that of Norcros, and retain our 'Buy' recommendation." It has a price target of 20p.
Total revenue for the six months ended September 30th 2012 in its South African business was 17.4% higher than prior year on a constant currency basis at £39.9m (2011: £39.2m), although a considerably weaker rand means reported sterling revenue was ahead by only 1.9%. An underlying operating profit of £0.5m was recorded compared to an underlying operating loss of £0.3m in the prior year, principally driven by an improved performance in its tile manufacturing business as well as further improvements in our market leading adhesive business. Revenue at its Australian operation, Johnson Tiles, at £5.3m was 9.3% higher (2011: £4.8m) on a constant currency basis driven by a new tile range, success in the specification sector, and continued share gain with Bunnings, a major Australian DIY retailer. This new range together with a strong customer relationship and logistics expertise recently helped win further business to supply Bunnings in New Zealand. The business remained profitable in the period, generating an underlying operating profit of £0.1m (2011: £0.1m).