Norcros (LSE:NXR) delivered a strong set of results for the 53 weeks ended 5 April 2026, with group revenue rising 10.6% to £393.4 million and underlying operating profit increasing 7.9% to £48 million. Growth was supported by the acquisition of Norwegian wall-panel manufacturer Fibo and continued market share gains across the company’s core European bathroom markets.
The group also reported a significant improvement in cash generation, with cash conversion reaching 116%. Diluted underlying earnings per share climbed 7.2% to 35.8p, while the board approved an 8.7% increase in the full-year dividend. Although group operating margin eased slightly to 12.2%, management attributed this largely to the initial margin dilution associated with the Fibo acquisition and weaker trading conditions in South Africa.
Strategically, Norcros continued its transition towards higher-margin, mid-premium bathroom products across Europe. During the year, the company completed the acquisition of Fibo, exited tile manufacturing through the closure of Johnson Tiles South Africa and began evaluating options for the disposal of its remaining South African operations. Management said strong brand positions, investments in inventory availability and regulatory trends favouring sustainable building products have helped the group outperform challenging market conditions.
Current trading is reported to be modestly ahead of expectations, while leverage remains at a manageable 1.2 times. The board expressed confidence in the company’s ability to continue delivering progress against its medium-term growth and returns objectives, despite ongoing uncertainty in residential new-build markets.
Norcros’s outlook is supported by positive corporate developments and constructive technical indicators, which continue to point towards a favourable market trend. However, concerns around profitability pressures and higher leverage levels temper the overall investment case.
More about Norcros
Norcros plc is a UK-based, London-listed group focused on investing in and growing design-led, capital-light bathroom product brands. The company holds leading positions in the mid-premium bathroom market across the UK and Ireland and is expanding its presence across Europe. Its portfolio includes brands such as Triton, Merlyn, Grant Westfield, Fibo, Vado, Croydex and Abode, alongside Tile Africa, TAL and House of Plumbing in South Africa.
The group operates a decentralised business model that allows management teams to maintain operational independence while benefiting from shared expertise in procurement, sustainability initiatives and business systems. Norcros pursues growth through a combination of organic expansion, selective acquisitions and operational improvements, supported by a strong focus on sustainability and science-based carbon reduction targets.
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