Norcros – ahead of tomorrow’s Trading Update the shares, now 282p, look great value, broker upped TP to 380p

Mark Watson-Mitchell
Oct 15
2 min read

Mark Watson-Mitchell - 15.10.2025

Following the news from Norcros (LON:NXR) that it had received clearance from the UK Competition and Markets Authority, the group this week has completed the £46m acquisition of Fibo Holdings, a major wall panel supplier in Norway.

That deal adds another market-leading brand into the group, which is the number one bathroom products business in the UK and Ireland, helping to create a leading presence in waterproof wall coverings markets across the UK&I, Scandinavia and Central Europe.

Waterproof decorative wall panels are an attractive, high-growth market segment and the acquisition, which aligns with the group’s strategy to expand geographically, with Fibo, will also provide an important platform from which to grow its mid-premium brands across the region.

The addition of Fibo will be materially earnings accretive in the first full year of ownership.

Management Comment

Norcros CEO Thomas Willcocks stated that:

"We are delighted that the transaction has cleared this final regulatory hurdle and can now be completed.

This strategically compelling acquisition will give Norcros a strong platform to accelerate our geographic expansion across Scandinavia and Central Europe for both Fibo and our existing brands.

We welcome our new Fibo colleagues to the Norcros team and we are looking forward to working together on our shared growth plans for the region."

Trading Update Due

Tomorrow morning, Thursday 16^th October, will see the group declare its Trading Update for the 27 weeks to Sunday 5^th October.

Analyst View

Analyst David Buxton, at Cavendish Capital Markets, is very positive about the group following this acquisition – so much so that he has increased his Target Price for the company’s shares from 340p to 380p.

For the current year to end-March 2026, he is estimating an increase in group sales to £396.2m (£368.1m), with adjusted pre-tax profits of £41.2m (£36.5m), lifting earnings to 35.3p (32.4p) and raising its dividend to 10.5p (10.4p) per share.

For the prospective 2027 year, he goes for £441.4m in sales, £46.2m profits, 39.4p earnings and the payment of a 10.8p per share dividend.

“We raise our target price from 340p to 380p, reflecting the higher FY27E EPS forecast.

This represents a P/E of 9.6x and EV/EBITDA of 6.7x.

We are positive on the shares; the group continues to gain market share, with actions taken to improve margins coupled with the gains from today’s acquisition providing an attractive proposition.

Norcros currently look attractive trading on a FY27E of 7.2x offering substantial upside to our target price, and a c37% discount to its peer group.”

In My View

I do not doubt the value of this £