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02 Apr 2020
Norcros - COVID-19 trading update
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Norcros - COVID-19 trading update
Norcros plc (NXR:LON) | 172 -5.2 (-1.7%) | Mkt Cap: 154.6m
- Published:
02 Apr 2020 -
Author:
David Buxton -
Pages:
3
The year-end trading update unsurprisingly highlights the recent impact of lockdowns in the UK and SA, where operations have been temporarily suspended and cash conservation measures taken. It points to a reduction in FY20 guidance from a consensus EBIT of £35m to £31m and withdrawing its FY21 guidance until greater clarity is gained. This results in a 13.4% reduction in our forecast EPS to 28.1p. The company has a strong balance sheet with good liquidity, its shares have reduced more than the average, with a March 2020 P/E of just 4.6x. It will take time and greater clarity of the effect of the pandemic on FY21 trading for the share price to return to previous levels.