Good morning!

Graham here to round out this week's SCVR coverage for you.

This morning I've noticed RNS announcements from:

Let me know if you have any other suggestions, though I reckon these will keep me busy!

Cheers

Graham



Thanks for your suggestions. This might be a quickfire report as I attempt to cover as many stories as possible.

Today's report is now finished, as I have to go to the dentist! I have noted your suggestions and will attempt to catch up on them tomorrow. Thank you!



Norcros (LON:NXR)

  • Share price: 169.52p (+4%)
  • No. of shares: 80.6 million
  • Market cap: £137 million

Final Results

I know this as the owner of Triton showers, but it also owns Merlyn shower doors and a bunch of other bathroom and kitchen brands.

It tends to trade cheaply, which I've explained as being a function of:

  • low organic growth.
  • exposure to South Africa.
  • its net debt and pension scheme.

It issued a warning in February, as the Covid-19 situation was beginning to deteriorate, and then downgraded expectations in April.

Full-year Results

These results (to the end of March), and current trading, are better than the guidance given by the company on April Fool's Day.

Trading is "ahead of our COVID-19 operating scenario".

Underlying operating profit for FY March 2020 is still down 7.5% compared to FY March 2019.

Statutory operating profit is down 31%.

Make sure that you ignore the percentage changes in the highlights table - they aren't comparing like with like.

5ef46f27d9429NXR_20200625.PNG

There is simply no point in comparing pre-IFRS 16 numbers with post-IFRS 16 numbers.

Net debt appears manageable at £36.4 million, but trading does need to normalise in order for it to satisfy covenants. Covenant waivers are agreed until March 2021.

Dividend - no final dividend is proposed. An unsurprising decision but I do think it's worth taking note of which companies have continued to pay dividends during this crisis, as they must be particularly resilient!

Pension scheme -…

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