Norcros
Website:
Norcros
Index:
FTSE Small Cap
EPIC: NXR
Supersector:
Construction and Materials
Sector:
Construction and Materials
Subsector:
Building Materials and Fixtures
Market Cap:
£269.84M
Payout Frequency: Semi-Annual
Norcros Dividend Analysis and Summary
Dividend headline details
- Dividend declared: Interim dividend of 3.7p per share (up 0.2p, +5.7% YoY from 3.5p)
- Ex-dividend date: 27/11/2025
- Record date: 28/11/2025
- Payment date: 13/01/2026
- Dividend cover (H1): Diluted underlying EPS 16.2p ? cover c. 4.4x for the interim
- Historical context: FY25 total dividend c. 10.4p (3.5p + 6.9p) vs FY25 basic underlying EPS 33.6p ? cover c. 3.2x
- Policy tone: Board “recognises the importance of dividends”; uplift reflects resilient H1 and confidence
- DRIP: Available; election deadline 18/12/2025
- Approx. cash cost of interim: ~£3.3m (based on ~89.95m shares)
Financial support for the dividend
- Earnings/margins: Underlying operating profit up +7.4% to £21.9m; margin up +70bps to 11.9%; diluted underlying EPS up +11% to 16.2p.
- Cash generation: Excellent H1 cash conversion of 107%; capex modest at £2.7m.
- Balance sheet: Pre-IFRS 16 net debt £30.7m (down YoY), leverage 0.6x EBITDA; pro forma post-Fibo expected c. 1.6x—still conservative with a £130m RCF maturing Oct 2027.
- Pension: IAS 19 surplus £7.8m; deficit repair contributions (~£4.5m p.a.) expected to move to escrow once fully funded for two quarters and cease in June 2027—a medium-term FCF tailwind.
- Outlook: Full-year underlying operating profit expected in line with revised market expectations, supporting ongoing dividend capacity.
Dividend sustainability and growth trajectory
- Coverage is strong both in H1 (4.4x) and on FY25 comparable metrics (c. 3.2x), indicating a well-supported interim uplift and headroom for a progressive policy.
- Quality of earnings improving via higher margins and capital-light portfolio mix, underpinning cash generation and dividend durability.
- Leverage manageable post-acquisition; the Board’s continued dividend increase alongside M&A suggests confidence in multi-pronged capital allocation.
Structural changes and capital allocation signals
- M&A: Completion of Fibo acquisition (13 Oct 2025), financed via RCF; expected to be materially earnings accretive in first full year. Pro forma leverage to c. 1.6x.
- Portfolio shift: Closure of Johnson Tiles SA manufacturing completes exit from tile manufacturing, advancing a capital-light, higher-margin portfolio—supportive of future dividend capacity.
- Minor buybacks/treasury: Small treasury share purchases (~£0.8m)—no large-scale buyback signalling, with capital prioritised for organic investments, M&A and dividends.
Risks and flags relevant to dividend stability
- Macro demand: Continued weak markets (particularly RMI/new build timing uncertainty) could temper top-line growth.
- Integration risk: Fibo integration and synergy delivery; near-term financing costs and execution risk post-M&A.
- South Africa exposure: Challenging macro; although continuing SA businesses remain resilient, volatility persists.
- Exceptional/one-off costs: Ongoing legal case (exceptional charge in H1), ERP implementation costs—potential for cash flow noise.
- FX and input costs: Currency and freight/procurement dynamics can affect margins despite demonstrated procurement scale benefits.
Read more
Norcros Annual Dividend Yield - 3.38%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 28/11/2024 |
14/01/2025 |
Interim |
3.50p |
GBX |
| 26/06/2025 |
01/08/2025 |
Final |
6.90p |
GBX |
Total (Annual Dividends Per Share):
10.40p
Dividend Yield =
Annual Dividends Per Share (10.40p)
÷ Share Price (308p)
= 3.38%
Norcros Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 27/11/2025 |
13/01/2026 |
Interim |
3.7000p |
GBX |
| 26/06/2025 |
01/08/2025 |
Final |
6.90p |
GBX |
| 28/11/2024 |
14/01/2025 |
Interim |
3.50p |
GBX |
| 27/06/2024 |
02/08/2024 |
Final |
6.80p |
GBX |
| 30/11/2023 |
16/01/2024 |
Interim |
3.40p |
GBX |
| 29/06/2023 |
04/08/2023 |
Final |
6.80p |
GBX |
| 24/11/2022 |
10/01/2023 |
Interim |
3.40p |
GBX |
| 23/06/2022 |
29/07/2022 |
Final |
6.90p |
GBX |
| 25/11/2021 |
11/01/2022 |
Interim |
3.10p |
GBX |
| 24/06/2021 |
30/07/2021 |
Final |
8.20p |
GBX |
| 28/11/2019 |
10/01/2020 |
Interim |
3.10p |
GBX |
| 20/06/2019 |
02/08/2019 |
Final |
5.60p |
GBX |
| 29/11/2018 |
11/01/2019 |
Interim |
2.80p |
GBX |
| 21/06/2018 |
02/08/2018 |
Final |
5.20p |
GBX |
| 30/11/2017 |
12/01/2018 |
Interim |
2.60p |
GBX |
| 22/06/2017 |
03/08/2017 |
Final |
4.80p |
GBX |
| 15/12/2016 |
12/01/2017 |
Interim |
2.40p |
GBX |
| 23/06/2016 |
28/07/2016 |
Final |
4.40p |
GBX |
| 03/12/2015 |
07/01/2016 |
Interim |
2.20p |
GBX |
| 25/06/2015 |
29/07/2015 |
Final |
0.38p |
GBX |
| 04/12/2014 |
07/01/2015 |
Interim |
0.19p |
GBX |
| 25/06/2014 |
30/07/2014 |
Final |
0.34p |
GBX |
| 04/12/2013 |
09/01/2014 |
Interim |
0.17p |
GBX |
| Year |
Interim |
Final |
Currency |
Total |
Change |
| 2024 |
3.500 |
6.800 |
GBX |
10.300 |
0.980 |
| 2023 |
3.400 |
6.800 |
GBX |
10.200 |
-0.970 |
| 2022 |
3.400 |
6.900 |
GBX |
10.300 |
-8.840 |
| 2021 |
3.100 |
8.200 |
GBX |
11.300 |
29.880 |
| 2019 |
3.100 |
5.600 |
GBX |
8.700 |
8.750 |
| 2018 |
2.800 |
5.200 |
GBX |
8.000 |
8.100 |
| 2017 |
2.600 |
4.800 |
GBX |
7.400 |
8.820 |
| 2016 |
2.400 |
4.400 |
GBX |
6.800 |
163.560 |
| 2015 |
2.200 |
0.380 |
GBX |
2.580 |
386.790 |
| 2014 |
0.190 |
0.340 |
GBX |
0.530 |
211.760 |
| 2013 |
0.170 |
|
GBX |
0.170 |
|
Norcros Dividend Calculator
Norcros Dividend Growth
| Dividend Growth (1Y) |
2.91%
|
| Dividend CAGR (5Y) |
5.27%
|
| Years of Growth |
1
|
| Payout Ratio |
73.81%
|
| Buyback Yield |
-1.06%
|
| Shareholder Yield |
2.41%
|
| P/E Ratio (TTM) | 13.92 |
|---|
| Forward P/E | 8.41 |
|---|
| P/FCF | 12.73 |
|---|
| Earnings Yield | 4.56% |
|---|
| FCF Yield | 7.86% |
|---|
| ROE | 9.76% |
|---|
| ROCE | 15.05% |
|---|
| Profit Margin | 3.4% |
|---|
| Operating Margin | 11.52% |
|---|
| Gross Margin | 100% |
|---|