Norcros plc success story and low PE ratio positions business to “thrive” says Premier Miton

Norcros plc

Norcros plc (LON:NXR) was discussed by Gervais Williams, Co-Fund Manager of Diverse Income Trust plc (LON:DIVI) in an exclusive interview with DirectorsTalk.

DirectorsTalk asked:

Norcros plc is the largest designer and supplier of branded bathroom products in the UK and Ireland and second position in South Africa. They delivered a strong set of results in H1 and continue to grow market share and management is exceptionally focused on a number of significant growth drivers. Interestingly, Deutsche Bank set a target price of 375 pence on the 11th of December, and they’re trading at 242 pence today. Is this another business on a very solid footing? 

Gervais Williams commented:

Again, the stock has actually performed pretty well, actually so the share price has always risen. You might think that bathroom products aren’t that exciting, shower cubicles, but they’ve done very, very well to not just maintain that market position but improve it over recent years.  Small acquisitions have actually allowed them to generate not just more cash but a stronger market position.

So even now, even a company like this, where over the recent years, UK quoted companies have been depressed, valuations have been held back, a company which is already successful is standing on, according to Bloomberg, a PE ratio of 7.8 times to March 2025, with a 4.25% yield. 

Again, these kinds of companies, they’re just really well positioned, not just to survive but thrive. Tough market conditions will mean some of the competition goes down, opportunities to invest where many companies can’t keep up with them are there. We think actually, again, it’s an unloved success story which can continue to succeed from here, and the share price could go considerably better.

As I said, it’s already outperformed, but its valuation is still overlooked, that’s the nature of the UK market. We think there’s so much more to be had from here for Norcros. 

Norcros plc (LON:NXR) is a leading B2B producer of branded bathroom and kitchen products for its UK, South African and selected export markets. The portfolio of eleven operating companies (7 UK, 3 South Africa) is characterised by strong individual brands, together providing product breadth and channel diversity from a strong supply chain base.

Share on:
Find more news, interviews, share price & company profile here for:

UK Dividend Paying Stocks Rise in Demand  

Discover three UK dividend-paying stocks – Arbuthnot Banking Group, Norcros, and Diversified Energy Company – that offer attractive yields for passive income investors.

Norcros reports strong results and strategic resilience amid global uncertainty

Norcros plc is set to announce its full-year results for the year ending March 31, 2025, on June 12, 2025, highlighting strong profitability and growth trends.

Norcros Plc CEO and CFO Present Interim Results to 30 September 2024 (LON:NXR)

Norcros plc reports robust financial results, driven by revenue growth and strategic initiatives in the UK and South Africa's mid-premium bathroom markets.

Norcros reports resilient trading and market share gains

Norcros plc announces its interim financial results, revealing a 0.1% revenue growth like-for-like, despite a challenging market environment.

Norcros to host Investor Webinar on 27th November 2024

Join Norcros plc (LON:NXR) for an investor presentation webinar on its interim results for the 26-week period ending 29th September 2024.

Search

Search