Norcros Plc (LON:NXR) has delivered a steady first-quarter trading update ahead of its annual general meeting, with the bathroom and kitchen products group reporting organic revenue growth and reaffirming its outlook for the full year.
In a note published on 22 July 2026, Shore Capital said Norcros posted 3.1% organic revenue growth in the 13 weeks to 5 July 2026. That was driven by continued market share gains and price increases across its geographies, which more than offset softness in underlying market demand. The broker said management’s expectations for FY27 remain unchanged.
The company also benefited from the contribution of Fibo, which Norcros acquired in October 2025. Including that business, revenue growth was 27.9% on a reported basis for the period. Shore Capital left its forecasts unchanged and said they remain well underpinned despite uncertain market conditions.
The broker pointed to Norcros’s track record of gaining share, noting that those gains have accelerated during periods of global supply chain dislocation. It said the strength of the group’s brands, together with its positions in the mid-to-premium segments of its markets, has helped support price increases and organic growth. Shore Capital also highlighted product development, cross-selling, service levels and sustainability credentials as factors supporting the company’s performance.
Shares in Norcros were quoted at 317p in the research note. Shore Capital kept a target price of 630p, implying upside of 99%. The stock has risen 21% since the release of FY26 results, but it is still down 5.4% year to date, despite what the broker described as a series of solid updates during the calendar year and strong cash generation in the prior year.
The company said the latest quarterly growth was in line with the first two months of FY27, as indicated when its full-year results were published on 11 June. Shore Capital said investors are likely to view that consistency as reassuring, especially given the current backdrop of difficult market conditions.
Chief executive Thomas Willcocks reiterated his confidence in Norcros’s ability to make further progress against its medium-term ambitions. The company delivered a 20.0% underlying return on capital employed in FY26A, up 270 basis points year on year and exactly in line with the medium-term target set out at its Capital Markets Day in May 2024.
Excluding its South African businesses, which Norcros has said it is exploring options to sell, the group posted a 15.2% underlying operating margin in FY26A. That was ahead of its 15% group target. Cash conversion was also above its more than 90% medium-term target, reaching 116% in FY26A. The company said organic growth continued to run ahead of the market, and it reported that it is already ahead of its 2028 SBTi carbon reduction target for Scopes 1 and 2.
Shore Capital said two investor concerns may soon become historical issues. It noted Norcros’s intention to sell its South African businesses and said pension payments are set to cease in less than 12 months’ time. The broker said these developments could support a rerating in the shares.
On the broker’s forecasts, Norcros is expected to increase revenue from £393.4m in FY26A to £440.9m in FY27F and £451.9m in FY28F. Adjusted EBITDA is forecast to rise from £49.5m to £59.5m and then £62.4m over the same period. Adjusted diluted earnings per share are forecast at 35.8p, 37.4p and 42.2p, while the dividend per share is projected to rise from 11.3p to 11.9p and then 12.5p.
Shore Capital also set out a net debt position of £65.8m for FY26A, improving to £54.8m in FY27F and £41.2m in FY28F, excluding leases. It said Norcros remains well placed against its medium-term financial and operational targets, with a record of meeting expectations.
About the company
Norcros designs, sources and markets branded bathroom and kitchen products, including tiles, showers, taps and adhesives, mainly for the UK, Ireland and selected international markets.
