Norcros – this week’s Interims will show shares, at 295p, have further to climb, TP 500p

Mark Watson-Mitchell – 18.11.2025

We have all got them!

Kitchens and Bathrooms – I mean.

And investors should have this group’s shares too.

Just over a month ago, on Wednesday 15th October, I featured Norcros (LON:NXR) shortly before its latest Trading Update and just after the £265m-capitalised group had added another market-leading brand to its portfolio.

That £46m acquisition saw the group acquire Fibo Holdings, a major wall panel supplier based in Norway.

The business will be announcing its Interim Results this Thursday, 20th November, which I believe will be good enough to spike investor interest in its undervalued shares.

The Business

Through a strategic blend of acquisitions and organic growth, the Wilmslow-based Norcros has become the UK and Ireland's number one bathroom products group.

Employing over 2100 people, today it is a market leading group of brands specialising in design led, sustainable bathroom products across the UK, Ireland, Scandinavia, Norway, South Africa, and select export markets.

Each of its brands offers mid-premium product ranges distinguished by their innovation, design, and commitment to sustainability, all backed by industry leading service to its trade and retail customers.

The group’s Management sees significant potential for further expansion within its large and fragmented market, giving it the ability to accelerate its growth, while capturing market share through continued acquisitions, organic development, and operational excellence.

Norcros encompasses the renowned brands: Triton, Merlyn, Grant Westfield, Vado, Croydex, and Abode in the UK and Ireland, Fibo in Norway and Tile Africa, TAL, and House of Plumbing in South Africa.

Latest Trading Update

On Thursday 16th October, the group reported that for the 27-week period, its revenue is expected to be 1% ahead of the prior year on a like-for-like constant currency basis, with reported revenue of approximately £184m (£181.9m).

The underlying continuing operating profit is anticipated to be around £21.8m, up from £20.4m in the previous year, resulting in an increased group operating margin of approximately 11.9% (11.2%).

Management Comment

The company stated that:

“The Board remains confident that our market leading positions and implementation of our strategy will continue to deliver market share gains for the year ending 31 March 2026.

Despite the ongoing challenging market conditions, the Board expects full year underlying operating profit to be in line with market expectations, and to show further progress towards our medium-term strategic targets.”

Analyst View

Analyst David Buxton, at Cavendish Capital Markets, has recently 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.

Over at Zeus Capital, analysts Andy Hanson and Charlie Williams are more bullish with their Target Price, recently set at 500p (479p).

They estimate £392.8m sales for the current year, with £40.5m adjusted pre-tax profits, worth 33.8p in earnings and paying out a dividend of 10.6p per share.

For the year to end March 2027, they see £436.1m revenue, £46.1m profits, 38.1p earnings and a dividend per share of 10.8p.

I have no doubt about the value of this group’s shares at 295p.

Over four years ago, they were up to 351p.

Based on the broker predictions, I suggest that they will top that level again very soon and still look cheap.