Norcros Plc (LON:NXR), the number one branded bathroom products business in the UK and Ireland, has announced its results for the 53 weeks ended 5 April 2026 (prior period: 52 weeks ended 30 March 2025).
Financial Highlights
· Group revenue up 10.6% in a challenging market; driven by the acquisition of Fibo and market share gains
· Group underlying operating profit1 up 7.9% to £48.0m (2025: £44.5m); Fibo acquisition and strong UK&I performance
o Group operating margin at 12.2% (2025: 12.5%) slightly lower, as expected, following Fibo acquisition. However European (previously UK&I) like-for-like (“LFL”) operating margins up 0.4% to 15.9%
o Underlying profit before tax1 up 8.2% to £40.9m (2025: £37.8m)
· Excellent cash conversion of 116% (2025: 84%) with underlying net debt of £65.8m (1.2x leverage) demonstrating the Group’s ability to rapidly reduce leverage following debt funded acquisitions
o Underlying return on capital employed1 (ROCE) up 2.7% to 20.0%
o EPS (diluted and underlying) up 7.2% to 35.8p (2025: 33.4p)
o Full year dividend increased by 8.7% (+0.9p) to 11.3p per share
Operational and Strategic highlights
· Ahead-of-market organic revenue growth, driven by new product launches, cross-selling and high service levels
· Regulatory tailwinds supporting sustainability-related market share gains; 2028 SBTi carbon targets already met
· Ongoing investment in systems infrastructure driving simplification, with service and efficiency gains
· Completed the acquisition of the highly complementary and earnings accretive Fibo business in Norway
· Exited tile manufacturing through the closure of Johnson Tiles South Africa
· Post year-end, announced the intention to explore options to sell the Group’s remaining South African business
Current trading and outlook
Group revenue in the two months to the end of May 2026 was 3.1% ahead of the prior year on a constant currency like for like basis, adjusting for Johnson Tiles SA and the acquisition of Fibo. Market conditions are likely to remain subdued, with the pace of any recovery in the new build sector still unclear. The mid-premium RMI sector currently remains more resilient and the Board’s expectations for FY27 are unchanged.
Thomas Willcocks, CEO, commented:
“The past year has been pivotal for Norcros as we delivered another strong set of results alongside significant strategic progress to reshape and strengthen the Group for the long term. We have seen a strong performance across our core European markets supported by the successful acquisition of Fibo in Norway. Margins have again improved in the UK and Ireland offset by a softer performance in South Africa, increased Group investment to support growth initiatives, and as expected, some initial margin dilution from the Fibo acquisition.
Our businesses have leading branded market positions, well-invested inventory levels and deep supplier and customer relationships. This, together with our collective scale, means we are able to perform through periods of volatility and to take market share opportunities that arise at times such as these.
We have further simplified the Group’s portfolio and increased exposure to the more resilient mid-premium markets, taking a number of important strategic steps during the year as we continue to sharpen the Group’s focus on sustainable bathroom products.
We continue to build momentum, with share gains and progress being made across our strategic priorities. Supported by our strong financial position and proven through-cycle model, whilst market conditions remain uncertain, we are confident in our ability to deliver further progress towards our medium-term ambitions in the year ahead.”
Continuing Operations – Financial Summary
| 2026 | 2025 as restated3 | % change | |
| Revenue | £393.4m | £355.8m | 10.6% |
| Revenue constant currency LFL2 | 0.6% | ||
| Underlying operating profit1 | £48.0m | £44.5m | 7.9% |
| Underlying operating profit margin | 12.2% | 12.5% | (0.3pp) |
| Operating profit4 | £22.2m | £9.6m | 131.3% |
| Underlying profit before taxation1 | £40.9m | £37.8m | 8.2% |
| Underlying operating cash flow1 | £57.6m | £38.9m | 48.1% |
| Underlying net debt5 | (£65.8m) | (£36.8m) | (78.8%) |
| Diluted underlying EPS1 | 35.8p | 33.4p | 7.2% |
| Dividend per share | 11.3p | 10.4p | 8.7% |
| Underlying Return on Capital Employed1 | 20.0% | 17.3% | 2.7pp |
| Cash conversion | 116% | 84% |
1 Definitions and reconciliations of alternative performance measures are provided in note 5
2 Like-for-like (“LFL”) adjusted from a 53 to 52 week period, Fibo which was acquired in the current year, and Johnson Tiles UK which was sold in the prior year
3 Discontinued Johnson Tiles SA is not included in the income statement in the current or prior year figures, consistent throughout this announcement. Note 8 provides further details on the results of discontinued operations
4 Operating profit is stated after acquisition and disposal related costs (the prior year included costs of £22.2m relating to the disposal of Johnson Tiles UK), exceptional operating items and IAS 19R administrative expenses. Details are contained later in this statement
5 Net debt is on an underlying basis and is net of cash, capitalised costs of raising finance and total borrowings. IFRS 16 lease commitments are not included
FY26 Results Presentation
There will be a presentation today at 9.30am for analysts at the offices of Berenberg, 60 Threadneedle St, London EC2R 8HP. To confirm your attendance, please email [email protected]
There will also be a live, listen-only audio webcast of the event available at https://brrmedia.news/NXR_FY26. The supporting slides will be available in the Investor section of the Norcros website at www.norcros.com later in the day.
