Norcros plc (LON:NXR), a prominent supplier of innovative bathroom and kitchen products, continues to make strategic moves to enhance its market presence and financial performance. The recent disposal of Johnson Tiles UK to its management team marks a pivotal shift in the company’s strategic focus towards higher-margin businesses. This decision is expected to significantly contribute to a projected margin of 14-15% for the UK businesses in the Norcros portfolio by FY25F. Such strategic divestitures underscore the company’s commitment to efficient capital allocation and operational excellence.
We asked Tom Fraine, Research Analyst at Shore Capital for his thoughts on the company’s financial performance, outlook, market position, potential and more.
Norcros plc (LON:NXR) is a leading B2B producer of branded bathroom and kitchen products for its UK, South African and selected export markets. The portfolio of eleven operating companies (7 UK, 4 South Africa) is characterised by strong individual brands, together providing product breadth and channel diversity from a strong supply chain base.