Customer restructuring programmes and a tough macroeconomic backdrop in South Africa meant Norcros (NXR) managed just 0.9 per cent like-for-like revenue growth at constant currencies during the first half of its financial year. Investors in the bathroom and kitchen product supplier have known better momentum.
Shower manufacturer Triton - the largest contributor to UK revenue - reported a 12.3 per cent decline in like-for-like revenue as major customers de-stocked as part of plans to de-merge their UK operations. The industry-wide trend also caused a reduction in trade revenue for shower enclosure and tray supplier Merlyn. However, the latter division was helped by the roll-out of new product lines, which boosted the business’s retail revenue. Tap designer and manufacturer Abode also put in a stronger showing, selling £8.6m-worth of product, up from £7.3m a year ago.
South African revenue was flat on an underlying basis, despite Johnson Tiles being boosted by additional capacity and plant improvements. The April acquisition of House of Plumbing contributed £13m in revenue, 1 per cent higher than in the prior period.
Analysts at Peel Hunt expect adjusted pre-tax profits of £36.3m and EPS of 34.9p for the year to March 2020, rising to £38m and 36.5p, respectively, at the same time in 2021.
NORCROS (NXR) | ||||
ORD PRICE: | 234p | MARKET VALUE: | £188m | |
TOUCH: | 226-238p | 12-MONTH HIGH: | 245p | LOW: 183p |
DIVIDEND YIELD: | 3.7% | PE RATIO: | 11 | |
NET ASSET VALUE: | 166p* | NET DEBT: | 31%** |
27 weeks to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
2018† | 163 | 15.1 | 15.1 | 2.8 |
2019 | 181 | 12.7 | 12.5 | 3.1 |
% change | +11 | -16 | -17 | +11 |
Ex-div: | 28 Nov | |||
Payment: | 10 Jan | |||
*Includes intangible assets of £100m, or 125p a share. **Excludes lease liabilities. †26-week period. |