A reassuringly solid FY25 performance

A year-end update from Norcros confirmed modest LFL revenue growth in both divisions (including a slightly better H2 outturn) as well as a firmer group operating margin. Net debt was in line with the prior year, representing c.1x EBITDA. There should be no headwinds from current global tariff machinations and ongoing business collaboration and active portfolio management should be recurring themes going into FY26. On unchanged estimates, Norcros is trading on a mid-single digit P/E, offering a dividend yield above 5%. The latest DB pension triennial outcome (announced March 13) should have a positive impact on future cash flow and DCF valuation metrics; we will review our estimates and fair value with FY25 results in June.