| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 137.00 | -62 |
| Intrinsic value (DCF) | 109.97 | -69 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 0.09 | -100 |
Norcros plc is a leading UK-based manufacturer and distributor of high-quality bathroom and kitchen products, operating under well-known brands such as Triton, Merlyn, Vado, and Johnson Tiles. The company serves a diverse customer base, including consumers, architects, designers, and wholesalers, across the UK and South Africa. Norcros specializes in electric and mixer showers, shower enclosures, taps, bathroom accessories, ceramic tiles, and adhesives, positioning itself as a key player in the construction and home improvement sectors. With a strong portfolio of trusted brands, Norcros caters to both residential and commercial markets, ensuring steady demand in renovation and new-build projects. The company’s vertically integrated operations—spanning design, manufacturing, and distribution—enhance efficiency and market responsiveness. Headquartered in Wilmslow, UK, Norcros has built a reputation for innovation and reliability, making it a preferred supplier in the competitive home improvement industry.
Norcros plc presents a stable investment opportunity with its diversified product portfolio and strong brand recognition in the UK and South African markets. The company’s revenue of £392.1 million and net income of £26.8 million (FY 2024) reflect steady performance, supported by robust operating cash flow (£36.6 million). However, investors should note its moderate leverage (total debt of £90.3 million) and exposure to cyclical construction demand. The dividend yield (10.3p per share) adds appeal for income-focused investors, while its low beta (0.799) suggests relative resilience to market volatility. Risks include macroeconomic pressures on housing and renovation activity, as well as competitive pricing in the home improvement sector.
Norcros plc holds a competitive edge through its multi-brand strategy, which allows it to address various price points and customer segments in the bathroom and kitchen markets. Its Triton and Merlyn brands dominate the UK shower sector, while Vado and Johnson Tiles strengthen its presence in premium fixtures and tiles. The company’s vertical integration—controlling manufacturing and distribution—enhances cost efficiency and supply chain reliability. However, Norcros faces intense competition from global players like Kohler and Lixil, which benefit from larger scale and broader geographic reach. In South Africa, its Tile Africa retail chain competes with local and international tile suppliers. Norcros’s focus on innovation (e.g., waterproof wall panels under Multipanel) differentiates it, but reliance on the UK housing market remains a vulnerability. Its mid-market positioning balances quality and affordability, but premium competitors may erode margins in high-end segments.