Norcros (LSE:NXR) said underlying operating profit rose 7.9% to £48m for the 53 weeks to 5 April, after completing the acquisition of Fibo in Norway and delivering strong UK&I trading.
Group underlying profit before tax increased 8.2% to £40.9m, diluted underlying EPS rose 7.2% to 35.8p, and group operating margin was 12.2% with European like-for-like margins up 0.4% to 15.9%.
Cash conversion strengthened to 116% and underlying net debt fell to £65.8m (1.2x leverage), which the company says demonstrates its ability to rapidly reduce leverage following debt-funded acquisitions.
Strategically, Norcros said Fibo broadens its scale and product capability and will be materially earnings accretive in its first full year of ownership. It closed Johnson Tiles South Africa to exit tile manufacturing and has begun exploring options to sell the remainder of its South African business.
Group revenue in the two months to the end of May 2026 was 3.1% ahead on a constant currency like-for-like basis, and the Board left expectations for FY27 unchanged despite subdued market conditions.
"The past year has been pivotal for Norcros as we delivered another strong set of results alongside significant strategic progress to reshape and strengthen the Group for the long term," Thomas Willcocks, Chief Executive Officer, said.
