Research on Norcros Plc (NXR) from Equity Development
Norcros continues to navigate uncertain market conditions well, making good y-o-y progress backed by strong cash generation in H127. Full year expectations are unchanged, and valuation metrics continue to look attractive. Norcros has flagged H127 revenue growth of +19% (reported) and +1.5% (constant currency, LFL, excluding Fibo), generating c. £220m group revenue for the period. Fibo (acquired in October 2025) is now fully integrated into the Group, trading to plan, and some investment in business development has been undertaken. Period end net debt (pre-IFRS16) of £55m is a notable achievement, representing a £10m reduction from the beginning of the year. Given that the H1 net debt position already matches our FY27 projection, we will review cash projections fully with the H127 results. Norcros’ markets are set to remain subdued in H2 though estimates appear robust. With a share price in the lower half of its 12m trading range, valuation multiples look attractive, and we reiterate our fair value estimate of 400p per share.
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