Market's view on Norcros
Published on April 2024
- The sale of Johnson Tiles UK to its management team for £1.0m is seen as a strategic move to improve Norcros’ operating margin and streamline UK operations.
- Concerns are raised about the potential negative impact of pushing panels over tiles, which might not be entirely beneficial if it undermines the product variety.
- Upcoming investor updates are anticipated to provide more clarity on recent business changes.
- There is scepticism around the actual benefit of the transaction involving Johnson Tiles, with some watchers questioning its timing and the potential diversion of customers to competitors.
- There are differing opinions on Norcros’ growth prospects, with some watchers suggesting the company is stagnating and better investment opportunities exist elsewhere.
- Regular updates and analysis from financial entities like Zeus and Peel Hunt highlight the undervaluation of Norcros compared to its peers, mentioning specific figures and forecasts.
- Discussion includes detailed comparisons of investment returns from Norcros shares against other stocks, providing a broader perspective on its performance.
- Commentary on Norcros’ resilience in tough market conditions, continued debt reduction, and the ability to maintain dividends despite challenges.
- The recent legislative changes in South Africa’s electricity market are expected to positively impact Norcros’ operations and market demand in the region.