Norcros plc (LON:NXR), the number one bathroom products business in the UK and Ireland, has announced its results for the year ended 31 March 2025.
Financial summary
| 2025 | 2024 | % change 2025 v 2024 | |
| Revenue | £368.1m | £392.1m | (6.1%) |
| Revenue constant currency LFL1 | 0.9% | ||
| Underlying operating profit2 | £43.2m | £43.2m | – |
| Underlying operating profit margin (%) | 11.7% | 11.0% | 0.7pp |
| Underlying profit before taxation2 | £36.5m | £36.4m | 0.3% |
| Underlying operating cash flow2 | £38.9m | £56.4m | (31.0%) |
| Operating profit3 | £8.3m | £39.9m | (79.2%) |
| Underlying net debt2 | (£36.8m) | (£37.3m) | 1.3% |
| Diluted underlying EPS2 | 32.4p | 32.1p | 0.9% |
| Dividend per share | 10.4p | 10.2p | 0.2p |
1 LFL – Like for like after adjusting for the sale of Johnson Tiles UK in May 2024 and the closure of Norcros Adhesives in June 2023
2 Definitions and reconciliations of alternative performance measures are provided in note 5
3 Operating profit is stated after acquisition and disposal related costs (c.£25.4m largely relating to the sale of Johnson Tiles UK), exceptional operating items and IAS 19R administrative expenses. Details are contained later in this statement
Highlights
· Strong progress in a challenging environment:
o UK and Ireland – record underlying profit of £39.8m (2024: £38.4m) and underlying operating profit margin of 15.5% (2024: 13.6%)
o South Africa – resilient performance with underlying profit of £3.4m (2024: £4.8m); well placed to gain market share as conditions gradually improve
· Disciplined strategic execution driving market share gains and margin improvement:
o Portfolio development – sale of Johnson Tiles UK in May 2024 strengthens portfolio; strategic review of Johnson Tiles SA nearing completion
o Organic growth – launch of first complete bathroom range, increased cross-selling and market-leading customer service
o Operational excellence – benefits of scale and collaboration; Group freight strategy and distribution efficiencies
o ESG – Sustainable Products framework developed; good progress against 2028 SBTi targets and implementation of people and culture strategy
· Underlying operating profit2 of £43.2m, in line with the prior year (2024: £43.2m)
· Underlying ROCE2 of 17.3% (2024: 16.4%)
· Underlying cash conversion of 84% (2024: 123%), underlying net debt2 of £36.8m (2024: net debt of £37.3m) representing 0.8x leverage2
· 1 April 2024 pension valuation agreed at an actuarial deficit of £11.7m (1 April 2021: £35.8m) with deficit repair contributions of c.£4.5m p.a. to end after June 2027
· Strong balance sheet and capital availability – active M&A pipeline and confident of future strategic progress
Medium term strategic targets
Norcros remains committed to, and confident of, delivering our previously stated medium term strategic targets:
· Organic growth at 2% – 3% above the market
· Group underlying operating profit margin to reach 15%
· Cash conversion greater than 90%
· Return on capital employed greater than 20%
· Delivery of SBTi-validated science-based emissions targets by 2028
Current trading
Group revenue in the two months to the end of May 2025 was 1.8% below the prior year on a constant currency like for like basis, adjusting for Johnson Tiles UK and the number of trading days in the period (UK and Ireland -1.1%, SA -3.2%). Market conditions are likely to remain uncertain, with the pace of recovery in the new build sector still unclear, however, the RMI sector remains resilient and the Board’s expectations for FY26 remain unchanged.
Thomas Willcocks, CEO, commented:
“In the context of current market challenges, I am pleased with the performance over this period and excited by the significant opportunities that remain in the more resilient mid-premium market segments where we hold leading positions.
Our strategy is working and has momentum, building from a position of strength and scale as we actively leverage the customer and operational synergies within the Group. Our continued progress across our four key strategic pillars is delivering as demonstrated by our operating margins in our core UK & Ireland markets moving above 15% for the first time.
Whilst we are beginning to see some early evidence of a level of confidence starting to return to the sector, especially in new build, we are not reliant on any major recovery to deliver further progress against our medium term targets and as a result, the Board’s expectations for FY26 remain unchanged”.
There will be a presentation today at 9.30am for analysts at the offices of Hudson Sandler, 25 Charterhouse Square, London, EC1M 6AE. The supporting slides will be available in the investor section of the Norcros website at www.norcros.com later in the day.
