Showers, tiles and adhesives supplier Norcros (NXR) delivered a solid performance last year, despite currency headwinds and difficulties at Johnson Tiles. Underlying pre-tax profits rose by 27 per cent to £14.6m, and the company looks well placed to achieve its strategic target of doubling revenue to £420m by 2018.
UK revenue rose nearly 21 per cent to £148m, boosted by a full year contribution from Vado, the upmarket bathroom accessories maker. However, on a like-for-like basis, revenue fell 3 per cent, with good progress at Triton Showers and Norcros Adhesives more than offset by a weak performance from Johnson Tiles, where revenue fell 13 per cent. However, a successful restructuring at Johnson in the first quarter helped turn a first-half loss into a profit for the year.
Revenue in South Africa grew by 12 per cent on a like-for-like basis, but fell 7 per cent as the rand plummeted. Even so - despite a £400,000 currency hit - underlying operating profits doubled to £1.9m.
Adjusting for recognition of deferred tax assets, underlying EPS was 2.2p, and the tax charge in the current year is expected to increase. So analysts at Numis are forecasting underlying EPS of 1.9p for the current year, and adjusted pre-tax profits of £15.4m.
| NORCROS (NXR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 19p | MARKET VALUE: | £112m | |
| TOUCH: | 18.75-19.5p | 12-MONTH HIGH: | 26p | LOW: 15.5p |
| DIVIDEND YIELD: | 2.7% | PE RATIO: | 11 | |
| NET ASSET VALUE: | 11p* | NET DEBT: | 41% | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 170 | -10.0 | -3.4 | nil |
| 2011 | 196 | 7.5 | 1.2 | 0.36 |
| 2012 | 200 | 9.4 | 1.6 | 0.42 |
| 2013 | 200 | 5.2 | 1.0 | 0.46 |
| 2014 | 219 | 5.8 | 1.7 | 0.51 |
| % change | +10 | +12 | +70 | +11 |
Ex-div: 25 Jun Payment: 30 Jul *Includes intangible assets of £27m or 4.6p a share | ||||
