Norcros Plc FY26 Financial Performance and Strategic Update
Norcros Plc announced that underlying operating profit for the 53‑week period ended 5 April 2026 rose 7.9% to £48 million. Underlying profit before taxation increased 8.2% to £40.9 million from £37.8 million a year earlier, and diluted underlying earnings per share climbed 7.2% to 35.8 pence versus 33.4 pence. The board declared a full‑year dividend of 11.3 pence per share, an 8.7% increase on the prior 10.4 pence.
Group revenue expanded 10.6% to £393.4 million, up from £355.8 million in the prior year. On a constant‑currency, like‑for‑like basis (adjusted for the acquisition of Fibo and the exit from Johnson Tiles manufacturing), revenue was up 0.6%. The European segment, which now includes Norway‑based wall‑panel supplier Fibo (acquired in October 2025), generated £291.6 million of revenue, up from £256 million. Underlying operating profit in Europe rose to £44.4 million from £39.8 million, delivering an operating margin of 15.2%, marginally below the 15.5% recorded previously. Since its acquisition, Fibo contributed £32.7 million in revenue and £3.3 million in underlying operating profit.
South African operations reported revenue of £101.8 million, a modest increase from £99.4 million, with underlying operating profit of £3.6 million and an operating margin of 3.5%. The group has commenced a 12‑to‑18‑month process to explore options for its remaining South African assets, including a potential divestment. This strategic move was highlighted by a share price rise of 2.66% (NXR+2.66%).
Underlying operating cash flow improved sharply to £57.6 million from £38.9 million a year earlier, raising cash conversion from 84% to 116%. Underlying net debt stood at £65.8 million at year‑end, up from £36 million previously, resulting in a leverage ratio of 1.2 times underlying EBITDA. Underlying return on capital employed increased 2.7 percentage points to 20% from 17.3%.
Group operating profit for the year was £22.2 million, compared with £9.6 million in the prior year. The result incorporated acquisition and disposal‑related costs of £13.1 million and exceptional operating items of £9.9 million, which included a non‑cash impairment charge of £7.2 million primarily relating to goodwill at Tile Africa and House of Plumbing. Johnson Tiles South Africa was treated as a discontinued operation following its closure in June 2025.
Revenue for the two months to the end of May 2026 was 3.1% ahead of the prior year on a like‑for‑like basis, after adjusting for the exit of Johnson Tiles SA and the Fibo acquisition.
Chief Executive Thomas Willcocks commented that the past year had been pivotal, delivering strong results alongside significant strategic progress to reshape and strengthen the group for the long term.